DIGEST  OF  st-u 

TARIFF  HEARINGS 

BEFORE  THE 

J24       COMMITTEE  ON  FINANCE 

UNITED  STATES  SENATE 

_^^M  ON  THE 

BILL  H.  R.  7456 

SIXTY-SEVENTH  CONGRESS 
FIRST  SESSION 

TESTIMONY,  BRIEFS,  AND  LETTERS 


PREPARED  BY  THE 
UNITED  STATES  TARIFF  COMMISSION 

FOR  THE  USE  OF  THE 

COMMITTEE  ON  FINANCE 


UNIVERSITY  OF  CALIFORNIA. 
I.  OS  Ahjr^f  i  £5 

OCT  •>  2  195.3 

™ia  GOVT.  PUBS. 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1922 


DIGEST  OF 

TARIFF  HEARINGS 


BEFORE  THE 


COMMITTEE  ON  FINANCE 

UNITED  STATES  SENATE 


ON  THE 


BILL  H.  R.  7456 

SIXTY-SEVENTH  CONGRESS 

FIRST  SESSION 


TESTIMONY,  BRIEFS,  AND  LETTERS 


PREPARED  BY  THE 

UNITED  STATES  TARIFF  COMMISSION 

FOR  THE  USE  OF  THE 

COMMITTEE  ON  FINANCE 


WASHINGTON 

GOVERNMENT   PRINTING  OFFICE 
1922 


UNITED  STATES  TARIFF  COMMISSION. 

Office:  Old  Land  Offic«,  Seventh  and  E  Streets  NW.,  Washington,  D.  C. 
COMMISSIONERS. 

THOMAS  O.  MARVIN,  Chairman. 
WILLIAM  S.  CULBERTSOX,  Vice  Chairman. 
DAVID   J.    LEWIS. 
EDWARD   P.    COSTIGAN. 
THOMAS   WALKER   PAGE. 
WILLIAM    BURGESS. 

JOHN  F.  BETHUNE,  Secretary. 


LETTER  OF  TRANSMITTAL. 


UNITED  STATES  TARIFF  COMMISSION, 
Washington,  May  18, 

Hon.  P.  J.  McClJMBER, 

Chairman  Comtinittee  on  Finance,  United  States  Senate, 

Washington,  D.  C.. 

SIR:  In  compliance  with  request  of  the  Committee  on  Finance, 
the  Tariff  Commission  transmits  herewith  a  digest  which  it  has  pre- 
pared of  the  hearings  before  that  committee  upon  the  bill  H.  R. 
7456,  and  of  letters,  briefs,  and  other  communications  filed  with  the 
committee  on  the  same  subject. 
Very  respectfully, 

THOMAS  O.  MARVIN,  Chairman. 


FOKEWOKD. 


The  following  digest  of  hearings,  briefs,  and  letters  before  the 
Committee  on  Finance  on  the  bill  H.  R.  7456  has  been  prepared  by 
the  United  States  Tariff  Commission  pursuant  to  a  request  by  that 
committee. 

The  digest  naturally  falls  into  two  main  divisions,  as  follows: 

1.  Testimony  and  a  list  of  communications  expressing  views  on 
American  valuation  as  a  basis  for  assessing  duties  ad  valorem. 

2.  Testimony,  briefs,  and  letters  arranged  in  order  of  paragraphs. 
As  a  caption  under  each  paragraph  number  are  given  the  subject 

involved  and  a  list  of  the  witnesses  appearing  for  opposing  interests. 
This  is  followed  by  the  digests  of  the  material  presented  by  the  sev- 
eral witnesses  in  the  order  listed  as  above. 

The  page  numbers  cited  in  the  digest  refer  to  pages  in  the  revised 
edition  of  16  volumes  covering  the  oral  hearings. 


TABLE  OF  CONTENTS. 

Page. 

Letter  of  transmittal Hi 

Foreword 

American  valuation  as  the  basis  for  assessing  duties 

List  of  communications  expressing  views  on  American  valuation 21 

SCHEDULE  1. 
Paragraph. 

1.  Acids  and  acid  anhydrides 40 

2.  Acetaldehyde  and  paracetaldehyde,  etc 43 

4.  Butyl  alcohol  and  fusel  oil 45 

5.  Ammonium  ichthyolate  and  sugar  of  milk 46 

7.  Ammonium  sulphate,  nitrate,  etc 47 

8.  Antimony  oxide  and  compounds 50 

11.  Barium  chemicals 51 

14.  Caffeine  and  tea  waste :—  53 

15.  Calcium  carbide 54 

16.  Mercurial  preparations 59 

18.  Chalk;  whiting  and  Paris  white -  59 

24.  Chloral  hydrate 61 

26.  Color  lakes;  metol  and  hydroquinone 61 

30.  Galalith 62 

33.  Licorice  root 62 

36.  Dyewood  extracts 63 

39.  Gelatin 64 

46.  Citrate  of  lime 65 

47.  Magnesium  salts  and  magnesite 66 

48.  Camphor  and  menthol 74 

49.  Fish    oils 76 

50.  Vegetable  oils 77 

51.  Alizarin  assistant 86 

54.  Lemon  and  orange  oils 87 

55.  Cocaine , 87 

56.  Perfume  materials  ;  safrol,  etc 88 

59.  Paris  green 89 

60.  Phosphorus  and  chlorate  of  potash 89 

62.  Artists'  colors 89 

64.  Barytes  90 

66.  Bone  black ;  decolorizing  and  deodorizing  chars 91 

68.  Lampblack  91 

70.  Iron  oxide  pigments 92 

74.  Zinc   oxide 92 

75.  Potassium  chlorate,  caustic  potash,  etc 93 

77.  Soap 93 

78.  Salt ;  nitrate  of  soda,  etc 94 

79.  Hydrosulphites  and  sulphoxylates 96 

80.  Wheat    starch 96 

84.  Thorium;  cerium;  gas-mantle  scrap 96 

85.  Tin  chlorides 97 

86.  Titanium  potassium  oxalate 98 

88.  Zinc  chloride 98 

SCHEDULE  2. 

201.  Fire  brick  __  98 

202.  Tiles  99 

203.  Hydraulic  cement 102 

VII 


VIII  TABLE   OF    CONTENTS. 

Paragraph.  Page. 

204.  Lime 103 

205.  Keene's  cement;  gypsum,  etc 104 

206.  Pumice  stone 106 

207.  Fluorspar,  china  clay,  etc 108 

208.  Mica 114 

209.  Talc  and  soapstone 122 

211.  Graphite 125 

212.  Earthenware  and  chinaware 132 

213.  Chinaware  and  chemical  stoneware 134 

217.  Bottles 138 

218.  Blown  glassware;  illuminating  and  table  glassware,  etc 138 

219.  Window  glass 147 

223.  Mirrors 148 

225-228.  Optical  glass  and  instruments 149 

230.  Stained  glass , 150 

232.  Limestone,  marbles,  etc 152 

235.  Unpolished   granite__.  152 

»  SCHEDULE  3. 

301.  Pig  iron  and  scrap 153 

302.  Alloy  ores 154 

304-308.  Special  steels 166 

309.  Thermostatic  metal ;  forged  combinations  of  metals 178 

310.  Tinplate 182 

312.  Metal  sashes  and  frames 182 

315. '  Cold-rolled  and  tempered  steel 185 

320.  Electric  storage  batteries 186 

321.  Antifriction  balls 186 

325.  Anvils 186 

329.  Chains 187 

337.  Card  clothing '. 188 

339.  Aluminum  and  enamel  ware 189 

340.  Saws 193 

343.  Needles 1 195 

349.  Metal  buttons 197 

351.  Pens 200 

352.  Metal  pencils  and  lead  refills 201 

354.  Pocketknives ;  other  cutlery 201 

357.  Scissors  and  shears 205 

358.  Razors 206 

359.  Dental  and  surgical  instruments 206 

360.  Scientific  instruments 210 

362.  Files 214 

364-366.  Rifles,  shotguns,  and  pistols 215 

367.  Watches 217 

368.  Clocks * 223 

371.  Bicycles;  motor  cycles,  etc 226 

372.  Textile  machinery,  etc 227 

374.  Aluminum,  crude,  scrap,  and  alloys 229 

378.  Rolled  brass  and  copper  products 232 

379.  Bronze  powder 234 

380.  Gold  leaf 235 

382.  Tinsel  wire,  lame  or  lahn 236 

383.  Quicksilver 237 

385.  Nickel 238 

386.  Tinfoil,  pig  tin,  and  tin  solder 238 

387.  Bottle  caps 241 

389.  Type  metal  and  other  lead  alloys 241 

390, 391.  Zinc  ores,  oxide  and  compounds ;   products  entering  into  the 

manufacture  of  steel 245 

393.  Hair  clippers,  miners'  lamps,  clothes  pins,  and  twist  drills 247 

(Various.)  Ore  and  metal  products 250 


TABLE   OF   CONTENTS.  IX 

SCHEDULE  4. 

Paragraph  Page. 

402.  Logs,  fir,  spruce,  cedar,  and  hemlock;  pulpwood 251 

404.  Logs,  mahogany,  and  other  hardwood 252 

405.  Poles,  cedar 255 

408.  Shingles,  cedar 256 

411.  Reed,  rattan,  bamboo,  and  willow 257 

413.  Porch  and  window  blinds;  baskets 263 

414.  Broom  handles  and  bentwood  furniture 263 

SCHEDULE  5. 

501,  502.     Sugar 265 

503.  Molasses 283 

506.  Confectionery 289 

SCHEDULE  6. 

601.  Tobacco j 290 

SCHEDULE  7. 

701.  Cattle  and  tallow 297 

706.  Sausage  casings 306 

707.  Milk  and  cream 306 

710.  Cheese 306 

711.  Birds  and  poultry 314 

713.  Eggs 315 

715.  Foxes,  black  or  silver 320 

718-721.   Fish 320 

722.  Crab  meat 324 

724.  Buckwheat,  etc ^ 325 

726.  Macaroni 325 

730.  Wheat  and  wheat  products 326 

735.  Apples i 328 

736.  Bananas 329 

737.  Berries 329 

738.  Cherries 330 

740.  Preserved  fruits,  citron  peel,  etc 330 

742.  Grapes,  raisins,  and  currants 331 

743.  Lemons,  limes,  and  grapefruit 332 

744.  Olives 333 

746.  Pineapples 334 

748.  Glace  fruits 335 

750.  Flaxseed  and  linseed  oil 335 

751.752,.  Bulbs,  seedlings,  etc 336 

754-758.  Nuts 336 

760.  Oil  seeds,  etc •    343 

761.  Grass  seeds 345 

762.  Field  and  .garden  seeds 346 

763.  765.  Peas  and  beans 347 

766.  Mushrooms 348 

768.  Onions 349 

769.  Potato  flour,  etc 350 

770.  Tomatoes    (Mexican) 350 

773.  Dried  vegetables 351 

775.  Chicory 352 

776.  Cocoa 352 

777.  Ginger 353 

779.  Hops 353 

780.  Spices  and  spice  seeds 354 

SCHEDULE  8. 

802.  Distilled  liquors 355 


X  TABLE   OF    CONTENTS. 

SCHEDULE  9. 

Paragraph.  Page. 

901.  Yarn 356 

902.  Sewing  thread,  crochet,  etc 356 

903.  Cloth 358 

904.  Fabrics  358 

905.  Cloth  with  extra  threads,  etc 359 

908.  Jacquard  blankets—— 1 359 

909.  Tapestry  and  pile  fabrics 359 

911.  Quilts 361 

912.  Braids,  cords,  etc 361 

913.  Glove  cloth 363 

914.  Gloves 364 

917.  Handkerchiefs  and  mufflers 365 

918.  Shirt  collars  and  cuffs 365 

919.  Lace  window  curtains,  nets,  etc 366 

SCHEDULE  10. 

1001.  Flax  straw,  etc 366 

1002.  Sliver  and  roving  of  flax,  etc 368 

1003.  Jute  yarns,  twine,  etc 368 

1004.  Flax  yarns,  etc 370 

1005.  Cordage  and  rope 374 

1006.  Linen  threads,  etc. ;  flax  fish  nets 375 

1007.  Hydraulic  hose 376 

1008.  Jute  cloths,  bags,  etc 376 

1009.  Linen  towels,  etc 378 

1010.  Linen  fabrics 378 

1016.  Linen  handkerchiefs 380 

1018.  Linoleum,  oilcloth,  etc 381 

1019.  Fabrics  of  vegetable  fiber 382 

1020.  Straw  floor  coverings 383 

1021.  Cocoa  mats 386 

SCHEDULE.  11. 

1101.  Raw  wool 387 

1105.  Waste 392 

1106.  Tops,  roving,  etc 393 

1107.  Yarn 393 

1108.  Woven  fabrics,  light  weights 394 

1109.  Woven  fabrics,  heavy  weight 395 

1111.  Pile  fabrics 396 

1112.  Blankets 397 

1113.  Felts,  not  woven 397 

1115.  Knit  goods 398 

1116.  Wearing  apparel 399 

1117.  Floor  coverings 400 

1120.  Manufactures  of  wool,  n.  s.  p.  f 402 

SCHEDULE  12. 

1201.  Raw  silk 402 

1202.  Spun  silk 404 

1203.  Thrown   silk 405 

1204.  Sewing  thread 405 

1205.  Fabrics  woven  in  the  piece 406 

1206.  Pile  fabrics,  etc 415 

1207.  Ribbons  and  small  wares 417 

1208.  Knit  goods 417 

1209.  Handkerchiefs  and  mufflers 419 

1210.  Shirt   collars 419 

1211.  Shirts 419 

1212.  Wearing  apparel 419 

1213.  Manufactures  of  silk,  n.  s.  p.  f 420 

1215.  Artificial  silk  and  manufactures  of—  420 


TABLE   OF    CONTENTS.  XI 

SCHEDULE  13. 

Paragraph.  Page. 

1301.  Printing  paper,  n.  s.  p.  f 422 

1302.  Wall  board,  etc 422 

1304.  Tissue  paper 423 

1305.  Paper  bags,  wrapping  paper,  etc 424 

1306.  Lithographic  pictures,  cigar  bands,  etc 430 

1307.  Writing  and  drawing  paper 431 

1309.  Bristol  board,  etc 434 

1310.  Books,  greeting  cards,  etc 436 

1313.  Boxboard,  wall  pockets,  etc 442 

SCHEDULE  14. 

1401.  Asbestos   manufactures '—  445 

1402.  Golf  balls 451 

1403.  Beads 452 

1405.  Felt  slippers 452 

140G.  Straw  hats 452 

1407.  Brushes*— 454 

1408.  Bristles 458 

1409.  Button  forms 459 

1410.  Buttons,  vegetable  ivory  and  pearl 450 

1411.  Buttons,  agate,  etc 462 

1412.  Cork 4fi3 

1414.  Dolls  and  toys 466 

1415.  Crude  artificial  abrasives 468 

1417.  Matches 470 

1418.  Blasting  caps,  etc 472 

1419.  Feathers,  artificial  flowers,  etc 473 

1420.  Furs,  dressed  or  manufactured 475 

1421.  Hatters'   fur 476 

1424.  Human   hair 477 

1426.  Hair  press  cloth 477 

1427.  Fur  felt  hats 477 

1428.  Jewelry 479 

1429.  Diamonds  and  other  precious  stones,  etc 481 

1430.  Laces,  embroideries,  etc 482 

1431.  Glove  leather .1 491 

1432.  Leather  goods 492 

1433.  Leather  gloves 493 

1434.  Catgut,  worm  gut,  etc 494 

1435.  Gas  mantles 496 

1437.  Rubber  manufactures ' 496 

1438.  Hard  rubber  manufactures,  etc 497 

1441.  Violins,  etc 500 

1444.  Rosaries 501 

1447.  Church  statuary 503 

1449.  Lead  pencils,  etc 506 

1450.  Lead  refills 508 

1451.  Photographic  goods,  etc 509 

1452.  Pipes  and  smokers'  articles 520 

1454.  Thermos  bottles,  etc 520 

1457.  Beeswax — 521 

SCHEDULE  15. 

1504.  Agricultural  implements  and  parts 521 

1509.  Antimony,  crude  or  needle 524 

1510.  Archil  liquid 525 

1513.  Sulphide  of  arsenic 526 

1514.  American  merchandise  exported  and  returned '__  526 

1515.  Asbestos,  crude 527 

1517.- Jute  bagging 527 

1520.  Bibles 529 

1523.  Bismuth 529 

1527.  Bones  ..                           530 


XII  TABLE   OF    CONTENTS. 

Paragraph.  Page. 

1529-1532.  Books 530 

1539.  Cadmium 531 

1540.  Acetate  of  lime 532 

1541.  Cash  registers  and  sewing  machines 532 

1542.  Cerium 537 

1544.  Chrome  ore : 538 

1546.  Cresol 538 

1548.  Guarana  (Brazilian  cocoa) 538 

1549.  Coffee 539 

1557.  Long-staple  cotton 539 

1559.  Metallic  arsenic 541 

1573.  Furs 542 

1575.  Grasses  and  fibers 542 

1577.  Shellac  and  copal  gums 543 

1578.  Explosives 543 

1579.  Hair,  unmanufactured 545 

1580.  Ossein r 545 

1582.  Hides 546 

1598.  Casein  1 547 

1600.  Leather  and  shoes 547 

1603.  Asphalt 557 

1610.  Wood  pulp 558 

1614.  Vanadium 566 

1620.  Copra 566 

1625.  Essential  oils 567 

1626.  Vegetable  oils 568 

1627.  Mineral  oils 570 

1635.  Muriate  of  potash  and  kainite 577 

1636.  Potassium  and  sodium  cyanides 581 

1643.  Rice 583 

1644.  Sago  and  sago  flour 584 

1653.  Kid  leather 584 

1654.  Cyanides 584 

1659.  Newsprint  paper 585 

1663.  Pyrites  and  refined  sulphur 590 

1666.  Tapioca 591 

1668.  Tea 592 

1670.  Tin,  pig  and  ore 593 

1672.  Turpentine  and  rosin 594 

1677.  Phonograph  records 595 

1678.  Personal  effects 595 

1683.  Lumber , 595 

1685-1688.  Works  of  art 600 

1688.  Stained-glass   windows 602 


DIGEST  OF  TARIFF  HEARINGS  ON  THE  BILL  H.  R.  7456. 

BEFORE  THE  COMMITTEE  ON  FINANCE,  UNITED  STATES  SENATE, 
SIXTY-SEVENTH  CONGRESS,  FIRST  SESSION. 


AMERICAN  VALUATION  AS  THE  BASIS  FOR  ASSESSING  DUTIES  AD 
VALOREM. 

[Title  IV,  section  402.] 

Witness:  Hon.  Thomas  Walker  Page,  Chairman  United  States 
Tariff  Commission. 

Hearings :  Pages  2-29. 

Kef erring  to  the  Tariff  Commission's  report  on  the  subject  of 
American  valuation,  the  witness  observed  that,  the  proposition  being 
new,  information  is  obtainable  thereon  only  in  meager  quantities. 
In  those  countries  where  goods  are  appraised  for  duty  at  their 
domestic  value  the  duties  are  low  and  do  not  form  part  of  what 
is  known  as  a  protective  tariff.  Consequently,  the  Government 
can  afford  to  be  much  more  liberal  than  would  be  possible  here 
in  their  appraisements  and  interpretations.  Conditions  in  India 
are  similarly  inapplicable ;  the  values  of  hides  for  export  are  there 
proclaimed  by  the  Government,  thus  practically  converting  ad 
valorem  rates  into  specific.  As  regards  the  adoption  by  the  United 
States  of  the  plan  under  review,  the  witness  believes  that  it  would  be 
as  easy  to  appraise  the  great  bulk  of  staple  commodities  at  their 
American  market  value  as  at  their  foreign  value,  but  difficulties 
would  arise  in  the  case  of  specialties  and  new  designs.  These 
difficulties,  which  exist  under  the  present  system  of  foreign  valu- 
ation, would  be  repeated  in  different  form  under  the  American 
valuation  plan. 

Replying  to  questions  as  to  the  amount  of  undervaluation  under 
the  present  system,  the  witness  believed  this  to  be  very  small  in 
relation  to  the  amount  of  goods  paying  full  duty  on  full  value.  As 
to  the  possibility  of  undervaluation  under  the  American  valuation 
plan,  the  witness  expressed  the  belief  that  "  any  tax  of  any  kind 
that  is  based  on  value  is  based  on  an  unstable  and  insecure  basis." 
At  the  same  time  he  credited  this  country's  appraisers  with  having 
acquired  an  astuteness  and  a  body  of  information  enabling  them 
in  nearly  all  cases  to  appraise  imported  goods  at  their  actual 
foreign  value. 

The  witness  does  not  regard  German  governmental  efforts  to  fix 
export  prices  far  in  advance  of  local  selling  prices  as  affording 
reasonable  data  for  judgment.  The  working  of  the  system  has 
been  attended  with  great  irregularity  and  uncertainty  and  the  suc- 

1 


2  DIGEST  OF   TARIFF   HEARINGS,  H.  R,   7456. 

cess  of  the  step  appears  to  be  very  doubtful.  Again,  he  regards  it 
as  almost  impossible  to  base  legislation  upon  the  cost  of  produc- 
tion, either  in  this  country  or  abroad — such  cost  being  highly 
evasive  and  difficult  to  reach.  But,  even  with  American  valuation, 
he  does  not  think  that  the  incentive  to  lower  the  cost  of  domestic 
production  would  be  substantially  lessened.  Neither  does  he  be- 
lieve that,  even  with  the  present  wide  discrepancy  in  exchanges, 
there  will  be  a  tendency  in  the  future,  more  than  in  the  past,  to 
undervalue  imports.  The  desperate  needs  of  foreign  countries  will 
compel  them  to  sell  at  the  highest  possible  prices. 

The  witness's  position  in  regard  to  the  argument  that  American 
valuation  is  equivalent  to  increased  duties  was  thus  stated:  "In- 
evitably if  you  change  the  basis  from  a  lower  to  a  higher  without 
changing  the  rate  you  necessarily  raise  the  amount."  Under  the 
American  valuation  plan,  however,  the  same  amount  of  duty  would 
be  paid  on  identical  articles,  irrespective  of  widely  varying  pro- 
duction costs  and  rates  of  exchange.  In  the  absence  of  that  plan. 
"  the  same  article  coming  to  this  country  from  England  would  pay 
on  a  foreign  value  a  much  higher  duty  than  the  same  article  if 
it  came  to  this  country  from  Germany."  The  great  argument  in 
favor  of  American  valuation  is  that  it  will  remedy,  to  some  ex- 
tent, the  foreign  exchange  difficulty — -"  you  are  penalizing  the 
American  consumer  if  you  compel  him  to  purchase  under  the  same 
tax  his  goods  in  a  country  of  high  production  as  in  a  country  of  low 
production." 

The  witness  proceeded  to  quote  what  he  considered  to  be  the 
chief  objection  to  the  American  valuation  plan — its  difficulty  of  en- 
forcement. The  relation  between  American  and  foreign  valuation 
is  not  known  at  the  present  time,  and  it  can  not  be  predicted  what 
it  will  be  two  or  three  years  hence.  While  unaware  of  any  better 
way  to  meet  the  situation,  he  is  still  of  the  opinion  that  the  Ameri- 
can plan  will  fall  short  of  doing  so.  Methods  would  have  to  be 
worked  out  by  the  appraisers,  who  would  be  given  a  great  deal  of 
responsibility  and  power.  Given  enough  time,  the  American  valu- 
ation can  be  made  to  work  in  the  United  States,  just  as  the  foreign 
valuation  has  been.  The  plan  has  been  thought  of  by  many  for 
very  many  years. 

Witness :  Hon.  William  Burgess,  Member  United  States  Tariff 
Commission. 

Hearings:  Pages  29-45. 

Radical  as  the  proposed  change  of  base  to  American  valuation  may 
appear  to  be,  the  witness  believes  that  the  apparent  difficulties  can 
be  overcome.  Such  a  change  is  called  for  by  the  loss  of  revenue  to 
the  Government  through  undervaluation,  the'loss  to  American  indus- 
tries of  the  adequate  protection  intended  by  Congress,  and  the  intent 
and  purpose  of  some  foreign  manufacturers  to  deceive  United  States 
customs  officers  and  investigators,  not  wholly  unassisted  by  certain 
foreign  Governments.  The  witness  regards  the  undervaluation  fac- 
tor as  much  more  serious  than  many  believe. 

The  principal  reason,  however,  for  making  the  proposed  change  is 
the  difficulty  of  securing  the  foreign  market  value.  So  long  ago  as 
1912  an  appraisement  commission,  appointed  by  Secretary  Mac- 
Veagh  to  investigate  the  question  of  foreign  valuations,  showed  the 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  3 

futility  of  consular  certificates  and  foreign  chamber  of  commerce 
reports  and  that  the  knowledge  of  the  United  States  appraiser  was 
based  almost  entirely  upon  the  importer's  invoice.  There  are  for- 
eign goods  to-day  coming  into  this  market  which,  when  sold  here, 
show  a  profit  of  from  100  to  300  per  cent  of  their  factory  cost. 

Among  further  advantages  of  the  American  valuation  plan  is  the 
much  lower  rate  of  duty  required  than  when  assessed  upon  foreign 
valuation.  This  would  tend  to  correct  present  popular  misconcep- 
tions in  regard  to  the  percentage  actually  paid  in  the  form  of  duties. 
There  is  no  intention  of  keeping  the  same  rates  applied  to  American 
valuation  that  are  now  applied  to  foreign  valuation.  Another  accru- 
ing advantage  would  be  that,  instead  of  dealing  with  foreign  manu- 
facturers and  agents,  the  Government  would  be  in  close  touch  with 
American  manufacturers  and  wholesale  dealers,  who  would  furnish 
needed  information  as  required.  The  power  to  secure  facts  would 
be  in  the  hands  of  United  States  officials,  who  could  compel  attend- 
ance of  interested  parties  and  who  could  punish  for  established  fail- 
ure to  produce  evidence  or  for  perjured  testimony.  A  much  larger 
revenue  could  be  obtained  and  the  amount  of  protection  would  be 
increased.  Other  advantages  were  brought  out  by  the  witness,  who 
dealt  with  the  several  objections  propounded  by  opponents  of  the 
American  valuation  plan. 

Witness :  Mr.  Charles  E.  McNabb,  Law  Officer,  United  States  Tariff 
Commission. 

Hearings:  Pages  45-52  and  64-72. 

Closely  examined,  the  present  system  of  valuation  is  far  from 
perfection.  Not  only  are  foreign  values  often  unknown  to  apprais- 
ers, but  importers  repeatedly  seek  relief  for  undervaluation  on  the 
plea  that  they,  too,  were  ignorant  of  those  values,  which  may  have 
changed  since  the  date  of  agreement  to  purchase.  This  condition 
applies  also,  though  in  a  lesser  degree,  to  "consigned"  as  distin- 
guished from  "  purchased "  goods.  Importers  ask  for  certainty, 
not  obtainable  under  the  present  system. 

Another  difficulty  arises  in  the  case  of  the  large  body  of  imports 
having  no  ascertainable  foreign  market  value,  such  as  goods  manu- 
factured abroad  for  further  manufacture  in  the  United  States.  In 
many  such  cases  the  selling  price  is  not  available,  for  none  may  exist. 
Reliance  upon  invoices  means  simply  a  reliance  upon  foreign  sources 
of  value,  a  process  involving  very  little  delay  or  mental  effort,  but 
obviously  open  to  objection. 

It  may  be  said  that  the  effect  of  the  proposed  new  system  will  be 
to  waste  all  the  information  now  in  the  possession  of  appraisers 
and  to  make  a  fresh  start  necessary  for  these  officers,  but  the  wit- 
ness does  not  take  that  view.  A  further  objection,  that  importers 
will  be  burdened  with  added  obligations  in  regard  to  valuations, 
is  met  by  the  provision  in  the  bill  under  which  an  advisory  appraise- 
ment, carried  into  the  entry  by  the  importer,  will  relieve  him  from 
all  additional  duties  for  undervaluation  innocently  made  in  error. 
He  will,  under  the  bill,  know  better  than  at  present  what  he  will 
have  to  do  and  what  he  will  have  to  pay.  At  the  same  time,  the 
witness  does  not  expect  overnight  a  complete  and  successful  sub- 
stitution of  the  new  system  for  the  old.  There  will  be  difficulties 
in  determining  what  goods  are  comparable  and  competitive,  the 


4  DIGEST   OF   TARIFF    HEARINGS,   H.  R.    7456. 

former  especially.  The  appraiser  will  have  to  find  or  appraise  a 
value  fairly  representative  of  the  United  States  market  value.  "  He 
can  always  find  a  value.  He  can  always  appraise." 

The  witness  believes  that  the  risk  of  manipulating  prices  is  cov- 
ered by  the  terms  of  section  402  of  the  bill  in  so  far  as  a  combina- 
tion to  raise  prices  for  the  purposes  of  appraisement  is  concerned. 
For  the  rest,  the  evils  apprehended  are  committed  also  under  the 
present  system,  and  some  attention  has  been  given  to  remedying 
them.  The  same  section  of  the  bill  deals  with  the  question  of  de- 
termining what  are  the  principal  markets  of  the  United  States. 
Divergent  values  in  such  markets  would  be  taken  into  account  by 
the  appraisers. 

Witness :  Hon.  William  S.  Culbertson,  Member  United  States  Tariff 
Commission. 

Hearings :  Pages  52-64. 

The  witness  recognizes  the  importance  of  the  proposed  basis  of 
valuation  in  relation  to  the  very  disturbed  economic  conditions  in 
foreign  countries.  While  feeling  that'  it  will  tend  to  help  in  meeting 
these  unusual  conditions,  he  does  not  regard  the  proposed  plan  as  a 
panacea.  It  has  always  been  difficult,  even  under  normal  conditions, 
to  establish  costs,  here  or  abroad,  but  the  difficulty  is  increased  by  the 
diversity  of  exchanges,  by  the  creation  of  subsidies,  and  by  the  im- 
position of  restrictions  on  commerce,  all  interfering  with  the  regular 
courses  of  trade.  The  effects  of  these  factors  are  far-reaching. 
A  German  mark,  for  instance,  may  have  a  value  of  4,  5,  or  6  cents  in 
paying  wages  to  German  workmen  or  for  the  purchase  of  goods  in 
Germany,  while  worth  only  1£  cents  in  international  exchange. 
These  conditions  were  being  studied  by  the  Tariff  Commission  on  the 
basis  of  data  recently  brought  from  Europe  by  two  members  of  the 
staff.  While  Germany  is  placed  at  a  disadvantage  under  these  con- 
ditions in  buying  raw  material  in  countries  where  the  value  level  is 
higher,  she  is  bound  to  have  for  many  years  a  very  decided  ad- 
vantage in  the  fabrication  of  goods  in  which  labor  heavily  pre- 
ponderates. The  smaller  industries  would  be  specially  benefited. 

The  plan  under  review  is  one  means  designed  to  meet  an  unprec- 
edented situation.  The  inherent  difficulties  are  real,  but  not  in- 
superable; more  objections  could  be  raised  against  the  change  from 
domestic  to  foreign  valuation  than  in  the  reversed  direction  now  pro- 
posed. No  doubt  there  will  be  friction  for  a  time :  things  will  not  run 
immediately  as  smoothly  as  under  the  existing,  long-established  sys- 
tem, but  the  customs  officials  would  soon  be  ready  to  administer  the 
system.  There  are  a  great  many  appeals  under  the  present  system 
and  the  necessity  of  some  basic  decisions  must  be  anticipated.* espe- 
cially as  regards  the  expressions.  "  comparable  "  and  "  competitive.' 

The  witness  discussed  in  some  detail  the  potential  operation  of  cer- 
tain provisions  by  way  of  illustrating  his  views  and  referred  to  in- 
vestigations under  way  in  New  York  with  a  view  to  effective  com- 
parison of  foreign  and  domestic  values.  This  feature  has  a  bearing 
upon  a  prevalent  assumption  that  American  valuation  would  establish 
a  higher  level  of  value  than  exists  abroad.  There  are  cases  where  the 
foreign  value  is  as  high  as,  or  even  higher  than,  the  American  goods. 

The  cases  in  which  America  has  no  comparable  and  competitive 
goods  constitute  a  problem.  It  might  be  advisable  to  put  on  as  many 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  5 

specific  duties  as  possible  and  then  select  another  field  of  proclaimed 
and  official  values,  fixed  by  some  organization,  commission,  or  bureau 
keeping  closely  in  touch  with  foreign  markets. 

The  witness  does  not  see  at  this  time  any  very  great  danger  of 
combinations  of  American  manufacturers  to  take'  advantage  of  the 
plan.  Foreign  competition  would  prevent  "  pyramiding "  here,  al- 
though it  is  difficult  to  get  at  the  jobber  and  the  retailer. 

Witness :  Hon.  Thomas  O.  Marvin,  Vice  Chairman  United  States 
Tariff  Commission. 

Hearings :  Pages  72-85. 

The  witness  detailed  the  present  organization  of  the  United  States 
customs  service,  with  .particular  reference  to  the  appraising  and 
collecting  of  ad  valorem  duties  on  imports.  The  present  system 
involves  the  securing  of  foreign  wholesale  prices  by  an  inadequate 
force  of  six  foreign  agents,  experts  in  their  line  and  having  many 
years'  experience. 

The  plan  now  proposed  would  .abandon  exclusive  reliance  upon 
the  value  of  goods  abroad,  substituting  for  this  an  effort  to  obtain 
the  value  of  comparable  and  competing  articles  in  this  country. 
This  does  not  change  the  real  basis  of  the  work,  but  merely  trans- 
fers the  field  of  operation,  with  obvious  advantages  in  proximity 
and  familiarity. 

Even  if  it  be  assumed  that  the  present  free  list  of  60  per  cent  of 
American  imports  be  reduced  to  50  per  cent,  it  must  be  remem- 
bered that,  of  the  latter  proportion,  a  very  considerable  number 
will  bear  specific  duties  and  consequently  be  beyond  the  scope  of 
the  plan.  The  witness  discussed  this  feature  in  considerable  de- 
tail, with  especial  attention  to  the  textile  schedules,  in  which  com- 
plications, if  any,  would  be  most  likely  to  occur.  He  laid  stress  upon 
the  ability  to  ascertain  American  prices  as  the  nub  of  the  proposi- 
tion, and  referred  to  various  United  States  official  publications  as 
already  yielding  comprehensive  data  in  this  field. 

Meeting  the  suggestion  that  American  manufacturers  might  raise 
their  prices  to  an  exorbitant  degree  in  order  to  increase  the  duty  on 
the  imported  article,  the  witness  referred  to  the  competition  of 
American  producers,  to  foreign  competition,  and  to  the  always  pos- 
sible refusal  of  purchasers  to  buy  at  prices  beyond  a  reasonable 
limit.  He  regards  the  plan  as  essential  either  for  protective  or 
revenue  purposes. 

Undervaluation,  the  witness  observed,  is  prevalent  in  both  small 
and  large  transactions — an  evil  which  will  be  eliminated  by  the 
adoption  of  American  valuation. 

Witness:  Mr.  George  C.  Davis,  special  agent  in  charge,  Port  of 
New  York. 

Hearings :  Pages  85-123. 

The  witness's  official  duties  include  the  charge  of  the  Comparative 
Value  Report  Bureau.  He  does  not  regard  a  mere  enumeration  of 
rates  as  any  fair  test  of  the  difficulties  in  the  way  of  American 
valuation;  he  emphasizes  the  difficulties  of  administration  and  in 
adjusting  rates  to  meet  the  new  plan.  The  proposed  application 
of  the  domestic  value  to  the  imported  value  would  involve  an  imme- 
diate and  exhaustive  search  throughout  the  markets  of  the  United 
States  for  comparable  and  competitive  domestic  articles;  not  until 
77134_22 2 


6  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

then  would  it  be  legally  practicable  to  resort  to  the  alternative 
method  of  appraisement  in  the  bill. 

Much  time  and  extra  help  would  be  required  for  such  an  investi- 
gation as  must  precede  actual  operations  under  the  proposed  plan. 
After  that,  a  greater  expenditure  of  time  than  is  now  given  would 
be  necessary  to  examine  merchandise  brought  in  under  the  new 
conditions.  He  thinks  the  present  system  capable  of  improvement, 
but  not  by  the  method  proposed  in  the  bill.  Entirely  new  values 
would  have  to  be  set  down  and,  for  some  time,  at  least,  every  one 
of  them  would  be  litigated.  More  than  this,  ,a  week  or  two's  delay 
would  tie  up  the  import  commerce  of  the  country  to  a  serious  extent. 

Another  difficulty  arises  from  the  enormous  volume  of  imports — 
valued  at  $130,000,000  per  annum— reaching  this  country  through 
the  mails  by  parcel  post.  The  private  invoice  now  largely  de- 
pended upon  in  appraising  this  class  of  merchandise  would  be  value- 
less under  the  new  plan.  The  witness  went  in  detail  into  typical  in- 
stances illustrating  the  difficulties  to  be  confronted  in  the  determi- 
nation of  values  by  either  of  the  methods  outlined  in  the  bill.  One 
possible  result  would  be  the  driving  out  of  the  American  whole- 
saler by  the  foreign  agent  or  branch  house,  taking  only  their  for- 
eign mill  profit.  It  would  be  necessary  to  increase  the  number  of 
attaches  in  foreign  countries  under  any  modification  of  the  existing 
system  aiming  at  a  closer  approximation  to  foreign  values  by  a 
process  of  building  from  the  American  selling  price.  This  is  the 
witness's  suggestion  for  the  American  selling  price  plan.  The 
Treasury  Department  would,  in  any  case,  have  to  use  their  special 
agents'  services,  the  more  so  as  the  examiners  could  not  leave  their 
work  to  gather  data  for  administering  the  new  law.  It  might  be 
possible  with  an  expenditure  of  $27,000  to  collect  these  data  in 
three  months,  an  important  feature  being  to  determine  the  reduc- 
tion in  rates  to  fit  the  higher  valuation  basis.  Even  with  60  or  70 
adequately  paid  men  specially  assigned  to  live  abroad,  some  slight 
improvements  on  the  present  system  would  be  necessary  to  cover 
closed  markets.  The  information  collected  by  these  men  would  be 
useful  apart  from  tariff  considerations.  As  regards  the  question 
of  exchange,  the  witness  believes  that  the  rates  of  duty  in  the  Payne- 
Aldrich  bill,  if  carried  into  the  bill  under  discussion,  would  provide, 
many  times  over,  for  the  difference  of  exchange  in  cost  of  manu- 
facture. 

Witness:  Mr.  Thomas  H.  Eddy,  representing  Marshall  Field  & 
Co.,  Chicago,  111. 

Hearings:  Pages  123-131  and  185-186. 

Asked  for  his  views  on  the  subject  of  American  valuation,  the 
witness  observed  that  the  firm  on  whose  managing  staff  he  is  ap- 
pears both  as  large  domestic  manufacturers  and  as  heavy  importers. 
The  firm  has  manufacturing  plants  in  seven  States  of  the  Union, 
but  none  abroad.  The  manufacturing  business  is  several  times  the 
import  business. 

It  is  an  essential  and  necessary  part  of  the  firm's  business  to  sell 
for  future  delivery — sales  in  the  spring  being  intended  for  late 
summer  and  fall.  Similarly,  as  regards  buying,  the  witness  can 
see  no  way  of  buying  in  European  markets  with  any  certainty  of 
what  costs  and  domestic  prices  will  be  at  the  time  of  selling.  The 


DIGEST   OF   TARIFF   HEARINGS,   H.   R,    7456.  7 

goods  must  actually  arrive  and  pass  through  the  customhouse  to 
determine  these  factors.  To  some  extent  the  firm  imports  textiles 
competing  with  those  which  it  manufactures,  but  most  of  its  im- 
portations are  noncompetitive  with  what  the  firm  makes  in  this 
country. 

The  firm  would  be  satisfied  with  any  reasonable  rate  of  duty,  but 
feels  that  the  bill  as  drawn  does  not  meet  requirements.  In  illus- 
tration of  this  position,  the  witness  cited  several  imported  articles  on 
which  the  amount  of  duty,  under  the  bill,  would  range  from  65  to 
177  per  cent  of  the  foreign  cost — the  price  paid  abroad  by  the  firm. 
He  also  filed  a  table  showing  the  foreign  prices  paid  for  imported 
commodities  in  1914.  1920,  and  1921,  with  due  relation  to  current 
rates  of  exchange  in  each  case. 

Witness :  Mr.  Jacob  de  Jong,  president  of  the  Flower  and  Feather 
Manufacturers  of  America. 

Hearings:  Pages  132-150. 

Admitting  that  there  are  obstacles  -and  difficulties  in  the  way  of 
American  valuation,  the  witness  believes  that  if  it  had  been  in  opera- 
tion for  a  hundred  years  it  would  be  more  perfect  and  effective  than 
the  present  system,  which  has  been  operating  for  that  length  of 
time.  There  is  no  certain  knowledge  of  foreign  values  on  the  part 
of  officials,  added  to  which  is  the  inequality  arising  from  lowered 
foreign  exchanges.  In  the  witness's  native  country — Holland — the 
system  of  assessing  ad  valorem  duties  has  always  been  on  the  value 
in  Holland  itself,  and  he  knows  of  no  reason  why  American  whole- 
sale market  values  can  not  be  ascertained  as  easily  as  the  foreign 
market  values  throughout  the  world.  With  only  six  Treasury  offi- 
cials scattered  throughout  the  world — of  whom  only  one  is  in  Ger- 
many and  one  in  Japan — the  witness  doubts  the  feasibility  of  the 
latter  function.  Even  if  50  men  were  assigned  to  Germany  alone 
it  could  not  be  done.  Enormous  stocks  of  German  goods,  such  as 
artificial  flower  wreaths,  accumulated  during  the  war,  are  now  being 
sold  to  this  country  below  the  cost  of  the  raw  material.  On  the 
other  hand,  American  business  of  this  character,  limited  before  the 
war,  has  developed  tremendously  and,  owing  to  the  cited  conditions, 
the  goods  so  produced  can  not  find  a  market.  The  witness's  own 
establishment  is  practically  closed.  The  gross  sales  of  the  200  Amer- 
ican manufacturers  of  these  goods  might  amount  to  $18,000,000  per 
annum  before  this  German  competition  arose. 

The  witness  referred  to  the  difficulty  likely  to  arise  from  large 
importations  by  parcels  post,  previously  stated  by  another  witness 
at  $130 ,000,000  Value  per  annum,  and  to  the  tendency  under  the  exist- 
ing system  of  assessing  on  foreign  value,  of  excluding  imports  from 
countries  which  are  this  country's  largest  customers;  that  is  to  say, 
the  countries  having  depreciated  currencies  would  be  favored.  An- 
other consideration  is  that  of  $5,270,000,000  total  imports  into  the 
United  States  $4,500,000,000  will  not  be  in  the  slightest  degree 
affected  by  American  valuation. 

American  manufacturers  can  meet  all  the  world  in  competition, 
but  they  are  unable  to  produce  their  labor  on  the  same  level.  Ger- 
man newspapers  are  filled  with  advertisements  and  some  factories 
have  more  American  orders  than  they  can  possibly  fill.  The  element 


8  DIGEST   OF   TARIFF    HEARINGS,   H.  R.    7456. 

of  depreciated  currency  enters  largely  into  this  condition,  and  the 
witness  knows  of  no  means  of  meeting  it  except  by  the  adoption  of 
American  valuation.  While  that  system  is  new  and  to  a  certain 
extent  revolutionary,  it  is  not  as  revolutionary  as  are  world  condi- 
tions to-day.  The  witness  discussed  means  by  which  the  adoption  of 
the  system  could  be  facilitated. 

Witness:  Mr.  Patrick  H.  Quinn,  representing  (as  president)  the 
American  Lace  Manufacturers'  Association. 

Hearings :  Pages  150-153. 

This  American  industry  is  largely  the  result  of  the  Payne-Aldrich 
tariff  law,  which  took  off,  for  one  year,  all  duties  on  lace  machines. 
Investors  have  been  paying  for  their  innocence  ever  since.  One  merit 
of  the  plan  now  under  review — American  valuation — is  that  it  will 
give  this  country  the  same  protection  against  Germany  as  against 
England  or  France.  It  is  scientifically,  legally,  practically  and,  from 
an  American  standpoint,  the  proper  method.  He  minimized  the 
alleged  difficulties  of  its  application,  arising  from  a  misconception 
of  the  number  of  patterns  or  varieties  in  manufacture,  and  stated 
that  a  couple  of  lace  salesmen  in  New  York  could  furnish  the  com- 
mittee in  a  week's  time  the  market  value  of  every  kind  of  lace  sold  in 
that  city. 

Witness:  Mr.  H.  A.  Phillips,  representing  the  American  Fabrics 
Co.,  Bridgeport,  Conn.,  and  the  American  Lace  Association. 

Hearings :  Pages  155-157. 

The  interests  represented  believe  the  American  valuation  plan  to 
be  easier  of  administration,  insuring  more  reliable  protection  by 
reason  of  its  stable  basis.  The  amount  of  the  duties  to  be  collected 
under  it  will  depend  entirely  upon  the  rates.  He  agrees  with  Tariff 
Commissioner  Burgess's  formula  for  computing  the  amount  and 
percentage  in  a  given  case.  Within  three  months  after  its  enactment 
the  American  valuation  plan  will  prove  easy  of  administration. 

Importations  of  lace  from  Germany  and  other  parts  of  Europe 
have  so  increased  that  the  company's  former  customers  no  longer 
buy  from  it.  Lace  workers  in  Germany  are  probably  getting  the 
equivalent  of  $3  per  week  in  wages. 

Witness :  Mr.  John  R.  Rafter,  representing  the  Lace  and  Embroi- 
dery Association  of  America. 

Hearings :  Pages  158-170. 

The  association's  membership  embraces  39  businesses  in  New  York 
City  and  one  in  Philadelphia,  all  engaged  in  importing  and  dealing 
in  laces,  embroideries,  etc.  The  witness  filed  data,  derived  from  re- 
plies to  a  questionnaire,  showing  aggregates  as  follows  for  em- 
broidery plants  controlled  by  five  association  firms  in  this  country : 
Workers  employed,  2,080;  yearly  output,  $6,575,000;  capital  invest- 
ment, $2,978,000.  The  represented  interests  believe  that,  if  the 
American  valuation  plan  goes  into  effect,  they  will  be  compelled  to 
stop  marketing  their  goods.  This  conclusion  is  based  on  the  char- 
acter of  the  goods  imported  by  these  interests — articles  of  fashion, 
goods  highly  seasonal,  novelties,  and  specialties.  The  goods  with 
very  few  exceptions  are  made  to  order  by  the  foreign  manufacturers 
and  take  from  three  to  six  months  to  produce.  Consequently,  mer- 
chants must  know  costs  in  advance,  these  including  the  duty.  The 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  9 

witness  argues  that,  as  regards  the  item  of  duty,  this  determination 
will  not  be  so  easy  under  the  American  valuation  plan  as  under  the 
existing  system. 

The  witness  filed  a  brief  in  which  the  administrative  difficulties  of 
the  new  law  and  the  hazard  entailed  by  importing  under  its  provi- 
sions are  discussed  at  length.  The  danger  of  commercial  invasion 
from  Germany,  or  countries  similarly  situated,  is  believed  to  be 
grossly  exaggerated  and,  in  any  case,  the  remedy  applied  should  not 
be  worse  than  the  disease. 

Witness:  Mr.  Henry  Howard,  representing  the  Manufacturing 
Chemists'  Association  of  the  United  States. 

Hearings :  Pages  170-175. 

The  witness  is  immediately  connected  with  the  Graselli  Chemical 
Co..  Cleveland,  Ohio,  manufacturing  heavy  chemicals,  acids,  dyes, 
and  intermediates.  The  association  represented  bears  in  mind  that 
the  adoption  of  domestic  value  as  the  basis  for  ad  valorem  duty  rates 
has  been  advocated  by  leading  American  statesmen  during  the  past 
100  years  and  believes  that  never  in  the  country's  history  have  the 
advantages  of  that  procedure  been  so  apparent  as  to-day,  when  values 
in  foreign  markets  are  unstable  and  distorted  as  a  consequence  of 
depreciated  currencies.  As  regards  the  difficulties  imputed  to  the 
plan,  whatever  of  these  may  be  encountered  in  obtaining  a  fair 
domestic  value  can  never  be  so  great  on  the  average  as  those  inherent 
in  the  present  system.  Flagrant  undervaluation  exists,  which  it  is 
practically  impossible  to  prevent.  An  objection  in  anotner  direction 
is  based  upon  the  supposed  possibility  of  discrimination  against 
other  countries,  treaties  with  which  call  for  equality  of  treatment; 
but  if  there  be  anything  in  that  argument,  it  carries  with  it  the 
admission  that  the  present  system  of  specific  duties  is  the  grossest 
discrimination,  ignoring  as  it  does  the  divergence  of  market  values 
in  different  countries.  Discrimination  against  high-cost  countries 
prevails  under  the  system  of  foreign  valuation. 

It  seems  more  likely  that  a  close  and  accurate  statement  of  value 
can  be  obtained  from  an  importer  declaring  on  American  valuation 
than  from  a  declaration  referring  to  a  value  existing  10,000  miles 
away.  The  machinery  required  for  the  former  procedure  would  ob- 
viously be  simpler  than  that  demanded  by  the  latter. 

Witness:  Mr.  Clement  J.  Driscoll.  representing  the  Liberty  Lace 
&  Netting  Works. 

Hearings :  Page  175. 

The  witness,  describing  the  importer  as  a  jobber  and  distributor, 
dissociates  himself  from  the  idea  that  American  valuation  would 
drive  the  importer  out  of  business.  A  complete  embargo  would  make 
no  difference  to  the  importer:  all  he  has  to  dojs  to  substitute  the 
tag  "  Made  in  America  "  for  "  Made  in  Germany."  American  pro- 
ducers are  in  competition  not  with  the  importer  but  with  the 
European  manufacturer.  The  company  represented  by  the  witness 
urges  the  adoption  of  the  American  valuation  plan. 

Witness:  Mr.  Dudley  Harmon,  representing  the  Manufacturers' 
Association  of  Connecticut. 

Hearings:  Pages  175-177. 

The  association,  representing  about  800  manufacturers  of  the  State, 
believes  American  valuation  to  be  essential  to  adequate  protection  of 


DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Connecticut  industries.  The  establishments  making  up  that  body 
employed  in  1920  more  than  250,000  men  and  women,  and  their  ag- 
gregate capitalization  is  nearly  $1,000,000,000.  Recent  reports  from 
more  than  200  plants  showed  an  average  operating  schedule  of  only 
three  and  a  fraction  days  per  week,  with  forces  reduced  from  one- 
fourth  to  three-fifths  or  more.  Many  plants  are  closed  this  summer 
(1921)  from  two  weeks  to  indefinite  periods.  No  conceivable  sacrifice 
of  profits,  no  change  in  operating  methods  or  wage  schedules,  would 
meet  the  foreign  underselling  to  which  Connecticut  manufacturers 
are  now  subjected. 

Witness:  Mr.  Thomas  M.  Lane,  representing  (as  attorney)  the 
Madeira  Embroidery  Importers,  New  York  City,  and  other  im- 
porters. 

Hearings :  Pages  177-185. 

Up  to  15  years  ago  the  Germans  controlled  the  Madeira  embroidery 
industry,  but  American  capital  invested  abroad  has  now  largely  dis- 
placed German.  The  industry  is  peculiar  to  the  island  of  Madeira — 
women  working  at  low  wages.  There  is  no  competitive  article  in  this 
country.  The  essential  characteristic  of  novelty,  a  constant  develop- 
ment of  new  designs  and  new  articles,  makes  the  application  of  the 
American  valuation  plan  to  this  industry  peculiarly  difficult.  Im- 
porters believe  that  they  will  be  absolutely  unable  to~  determine  what 
the  American  selling  price  will  be.  This,  too,  notwithstanding  that 
there  is  practically  no  competition  in  this  country.  The  goods  are 
not  sold  on  sample. 

Mr.  David  Metzger,  president  of  the  Madeira  Embroidery  Co..  here 
interposed  the  remark  that  a  manufacturer  can  not  tell  what  the 
profit  is  going  to  be  in  imported  goods;  nobody  can  determine  that. 

Mr.  Lane,  continuing,  said  he  regarded  the  present  system,  modi- 
fied as  it  is  by  speculations  with  respect  to  currency  valuations,  as 
embodying  one  of  the  most  ideal  appraisement  methods  in  force  in 
the  world.  Opinions  to  the  contrary  generally  emanate  from  persons 
having  no  experience  in  foreign  values  and  who  greatly  exaggerate 
the  attendant  difficulties.  The  bulk  of  American  import  trade  is  in 
the  hands  of  highly  honorable  men,  jealous  of  their  reputation  and 
sincere  in  their  respect  for  law.  The  witness  expressed  the  belief 
that,  as  a  general  economic  principle,  commodities  "retain  their  gold 
values  irrespective  of  the  fluctuations  in  exchange. 

The  witness  filed  a  brief,  in  which  it  is  stated  that  the  bill  in  its 
present  form  will  cut  off  a  large  source  of  revenue  to  the  Government, 
which  received  in  1920  duties  exceeding  $2,000,000  on  Madeira  hand 
embroideries. 

Witness:  Mr.  J.  F.  Zoller,  representing  (as  attorney)  the  Ameri- 
can Valuation  Association,  New  York  City. 

Hearings :  Pages  186-197. 

The  association  formed  "  two  or  three  months  ago  " — say.  May, 
1921 — is  comprised  entirely  of  manufacturers,  over  100  in  number. 
The  witness  went  at  length  into  prewar  and  present  German  mark 
values  and  German  wag^es,  quoting,  in  part,  from  the  official  bulletin, 
Wages,  1921,  of  the  "Ways  and  Means  Committee.  "The  German 

-TT  "   \\f\    ooirl      "  /-»oT-i    call    3i1  AO    TTT/^T»fV»    f\£    cfr\f\r\G    in    "Miic    r»mintn~    ATifi 


to-day,"  he  said,  "  can  sell  $100  worth  of  goods  in  this  country  and 
take  that  $100  and  buy  much  more  labor  to-day  in  Germany  with  it 
than  he  could  in  1914.  An  ad  valorem  duty  imposed  in  1914  upon  a 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  11 

foreign  value  at  a  rate  adequate  at  that  time  would  constitute  no  pro- 
tection to-day  against  German  importation." 

One  advantage  derivable  from  the  American  valuation  plan  would 
be  that  more  duty  would  be  got  from  the  low-price  country  without 
placing  a  corresponding  burden  upon  the  American  consumer.  An- 
other is  that  it  will  have  a  tendency  to  reduce  retail  prices  by  educat- 
ing the  American  people  as  to  wholesale  prices.  The  plan  would,  to 
a  very  great  extent,  prevent  undervaluation. 

It  has  been  urged  as  a  disadvantage  that  the  proposed  plan  would 
result  in  imposing  more  duty  upon  imported  articles;  that  will  all 
depend  upon  the  rate  of  duty,  whether  fixed  iipon  American  or  for- 
eign valuation.  As  regards  the  difficulty  of  determining  American 
values,  the  witness  believes  that  function  Trill  be  easier,  though  pos- 
sibly more  expensive,  than  the  present  determination  of  foreign 
values.  He  does  not  believe  that,  as  has  been  alleged,  the  American 
valuation  plan  would  enable  the  American  producer  to  write  the  rates 
in  the  bill. 

The  witness  filed  a  brief,  recapitulating  in  considerable  detail  the 
arguments  presented  in  his  testimony. 

Witness:  Mr.  Charles  A.  Bihler,  representing  the  Allied  Lace 
&  Embroidery  Manufacturers'  Association  of  New  York  and  the 
United  States  Lace  &  Embroidery  Manufacturers'  Association  of 
West  New  York,  N.  J. 

Hearings:  Pages  197-202. 

The  interests  represented  urge  the  adoption  of  American  valua- 
tion because  of  the  chaotic  conditions  in  central  European  exchange 
rates  leaving  no  other  remedy  available.  Prices  in  Germany  on  the 
commodities  personally  manufactured  by  the  witness  are  on  the 
average  about  30  per  cent  lower,  measured  in  dollars,  than  prewar 
prices.  Thq  interested  factories  are  not  closed,  but  about  15  per 
cent  busy ;  this  is  largely  due  to  the  low  prices  of  goods  from  Ger- 
many, although  wages  in  this  country  have  -been  reduced  to  some 
extent.  The  Germans  are  subsidizing  industries  and  labor  by  selling 
food  products  at  a  loss  to  the  Government — a  condition  also  apply- 
ing to  freight  rates. 

Witness :  Mr.  William  P.  Clarke,  international  president  Ameri- 
can Flint  Glass  Workers'  Union,  Toledo,  Ohio. 

Hearings:  Pages  202-210. 

During  the  war  it  has  been  possible  to  build  up  an  industry,  espe- 
cially in  the  chemical  branch,  now  standing  practically  idle  because 
of  ruinous  foreign  competition,  actual  or  threatened.  Unless  the 
American  valuation  plan,  or  something  better,  is  adopted  there  is 
no  chance  to  compete  with  Germany,  Czechoslovakia,  and  Belgium. 
Even  160  per  cent  duty  would  not  adequately  protect  against  tha 
two  former  countries. 

In  the  course  of  a  personal  investigation  of  conditions  in  Germany 
(Oct.  7,  1920,  to  Mar.  13,  1921),  he  had  been  told  by  the  head  of  a 
glass  concern  there  that  he  had  that  morning  refused  an  order  for 
50,000,000  electric  bulbs  for  America,  being  unable  to  supply  the 
demand  in  his  own  country ;  otherwise,  that  ware  would  be  coming 
here.  Wages  in  the  American  industry  have  not  yet  been  reduced,  but 
reductions  of  from  20  to  33^  per  cent  are  being  asked  by  manufao- 


12  DIGEST   OF   TARIFF   HEARINGS,   H.  R,   7456. 

turers.     There  are  10,000  skilled  workmen,  and  for  each  of  these 
at  least  six  other  workmen  are  employed. 

Witness :  Mr.  Frederic  E.  Kip,  representing  the  Pile  Fabric  Man- 
ufacturers of  the  United  States. 

Hearings:  Pages  210-213. 

Using  for  their  product  all  known  textile  materials,  the  fabrics  in- 
cluded in  this  manufacture  are  made  in  four  of  the  large  industrial 
foreign  countries — Germany,  France,  England,  and  Japan.  The  rep- 
resented interests  consequently  regard  the  adoption  of  American 
valuation  as  an  imperative  necessity.  Under  foreign  valuation  the 
situation  will  be  simply  chaotic,  remembering  that  exchange  rates 
as  of  July  27,  1921,  show  these  percentages  of  depreciation  from 
par:  Eussia,  99.8  per  cent;  Germany,  95  per  cent;  Italy,  78  per 
cent;  France,  60  per  cent;  and  Great  Britain,  27  per  cent.  It  is 
conceded  that  for  the  20  years  prior  to  the  war  Germany  made  more 
industrial  progress  than  any  country  in  the  world,  the  United 
States  not  excepted.  On  a  gold  basis,  the  German  workman  is  now 
receiving  about  one-fourth  of  his  prewar  earnings. 

So  far  from  these  conditions  applying  to  Germany  alone,  the 
witness  believes  that  within  two  years  of  the  restoration  of  more 
stable  conditions  in  Russia  that  country  will  be  able,  with  her  de- 
preciated exchange  and  under  foreign  valuation  for  duties,  to  land 
wheat  in  the  United  States  at  50  to  60  cents  per  bushel — less  than 
the  labor  cost  alone  to  the  American  farmer.  Some  basis  for  Ameri- 
can duties  must  be  found  which  will  not  result  in  great  and  con- 
stant fluctuations,  and  this  the  American  valuation  plan  will  be 
able  to  effect. 

Witness:  Mr.  Walter  S.  Hilborn,  representing  (as  attorney)  the 
Novelty  Jewelers'  Tariff  Association. 

Hearings:  Pages  213-221. 

The  witness  represents  a  group  of  24  importers  of  novelty  jew- 
elry, opposing  the  American  valuation  feature  of  the  present  tariff 
bill.  These  importers  take  the  view  that  the  rate  provided  should 
adequately  protect  the  American  manufacturer,  while  not  high 
enough  to  exclude  novelty  jewelry.  The  witness  dwelt  upon  the 
difficulty  in  buying  largely  noncomparable  articles,  not  knowing  what 
their  cost  will  be,  landed  in  New  York,  possibly  six  or  eight  months 
later.  He  gave  figures  affording  a  comparison  between  the  old 
and  the  proposed  new  method,  tending  to  show  that  under  the  lat- 
ter there  would  be  nothing  left  to  be  paid  the  foreigner. 

A  brief  filed  by  the  witness  substantiates  and  amplifies  his  oral 
testimony.  The  brief  describes  the  effect  of  the  Fordney  bill  as  mul- 
tiplying cost  to  such  an  extent  as  to  prohibit  the  importation  of  any 
article  bearing  a  substantial  rate  of  duty.  Consequently,  the  Amer- 
ican valuation  feature  should  be  abandoned  or,  in  the  alternative,  the 
rate  of  duty  based  upon  the  American  selling  price  should  be  reduced 
to  a  point  where  the  duty  bears  approximately  the  same  proportion 
of  the  foreign  cost  as  is  borne  by  the  present  act. 

Witness:  Mr.  Alpheus  Winter,  representing  (as  general  manager) 
the  Manufacturers'  Association  of  Bridgeport,  Conn. 

Hearings :  Pages  221-225. 

The  witness  submitted  a  petition  signed  by  66  of  the  92  members 
of  the  association,  asking  for  the  adoption  of  the  American  valuation 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    "456.  1& 

plan.  The  city  is  at  a  very  low  ebb  industrially — fully  50  per  cent 
below  normal— a  condition  not  wholly  attributable  to  the  cessation  of 
war  orders. 

The  petition  describes  the  foreign  valuation  system  as  having  al- 
ways been  a  prolific  cause  of  inaccuracies  and  consequent  discrimina- 
tion. It  has  the  defect  of  forcing  the  Government  to  violate  its 
obligation  to  admit  the  goods  of  certain  friendly  countries  on  equal 
terms  and.  on  the  other  hand,  converts  this  country  into  a  dumping- 
ground  for  the  products  of  other  countries  having  depreciated  cur- 
rencies. American  valuation  would,  to  a  large  degree,  wipe  out 
present  customs  duty  inequalities  by  requiring  like  imports  to  pay 
the  same  dollars  and  cents  tax.  A  continuation  of  the  present  sys- 
tem means  the  absolute  extermination  of  certain  industries.  Refer- 
ence is  also  made  to  the  subsidizing  of  industries  by  the  German 
Government,  an  added  factor  to  the  difficulty  of  effecting  reasonable 
equality  if  foreign  valuation  be  adhered  to. 

Witness:  Mr.  Frederick  B.  Wilcox,  secretary  and  treasurer,  Amer- 
ican Textile  Co.,  Pawtucket,  R.  I. 

Hearings:  Pages  225-230. 

The  company,  employing  about  450  hands,  the  largest  United 
States  plant  manufacturing  laces,  veils,  net,  and  kindred  fabrics  on 
Levers  machines,  favors  American  valuation,  with  rates  on  raw  ma- 
terial and  finished  goods  in  proportion.  In  the  past,  undervalua- 
tion has  been  the  great  trouble,  and  to  this  the  exchange  situation 
has  been  added.  So  bad  have  conditions  become  that,  without 
American  valuation,  the  lace  industry  in  this  country  is  doomed. 

Exhibits  covering  prices  of  foreign  yarns,  operating  results,  etc.,, 
were  submitted  by  the  witness. 

Witness:  Mr.  H.  S.  Bowie,  representing  the  American  Doll  Manu- 
facturers' Association.  New  York  City. 

Hearings :  Pages  230-234. 

Dolls  are  manufactured  in  only  two  countries — Germany  and 
Japan — outside  of  the  United  States:  the  American  industry  is 
practically  a  war  product.  No  dolls  of  the  type  imported  into  the 
United  States  are  made  in  Japan  except  for  exportation.  This  being 
so.  their  market  value  in  Japan  is  absolutely  unobtainable.  On  the 
other  hand,  it  would  be  easy  to  adjust  the  American  valuation  on 
merchandise  made  in  this  country,  especially  as  most  goods  imported 
into  this  country  are  manufactured  from  samples  sent  from  here, 
with  consequent  ease  in  comparison. 

Touching  the  relation  of  German  to  American  wages,  the  witness 
quoted  as  follows  from  a  long  article  in  the  Journal  of  Commerce 
and  Commercial  Bulletin.  New  York,  July  29,  1921 : 

The  current  opinion  that  Germany  (given  complete  freedom  to  export,  which 
does  not  at  present  exist)  could  undersell  the  other  great  commercial  nations 
is  unquestionably  correct,  for,  measured  by  their  gold  equivalent,  German  wages 
are  indeed  extraordinarily  low.  In  May  the  average  hourly  wage  of  a  skilled 
metal  worker  was  6.60  marks,  which  at  present  dollar  exchange  is  about  10 
cents  gold. 

As  against  this,  the  average  wage  paid  in  New  York  State  for  fac- 
tory labor  was  about  $25,  including  both  men  and  women,  with  a 
percentage  slightly  in  favor  of  the  women. 


14  DIGEST   OF   TARIFF    HEARINGS,   H.  R.   7456. 

If  American  valuation  goes  through,  nearly  everybody  will  know 
what  merchandise  is  going  to  cost.  Drastic  legislation  of  this  type 
is  needed. 

Witness:  Mr.  H.  C.  Ives,  representing  the  Toy  Manufacturers  of 
the  United  States  of  America  (Inc.),  New  York  City. 

Hearings :  Pages  234-243. 

The  witness  characterized  the  opponents  of  American  valuation 
as  experts  on  foreign  invoice  value  or  importers  and  the  proponents 
as  experts  on  American  market  values  or  Government  officials  whose 
duties  require  them  to  weigh  evidence.  He  regards  the  American 
business  man  as  the  one  best  fitted  to  determine  American  values ;  he 
buys  his  materials  on  that  basis.  Questioned  as  to  the  application  of 
this -to  products  not  produced  in  the  United  States,  the  witness 
replied  that  the  matter  would  then  "  be  entirely  up  to  the  judgment 
of  the  customs  officials.  *  If  an  article  is  not  comparable 

with  any  other  article  in  America,  they  have  to  use  their  own 
judgment." 

The  witness  submitted  a  brief  in  which  existing  and  potential 
business  conditions  are  discussed  in  detail. 

Witness:  Mr.  W.  O.  Coleman,  president  of  the  American  Flyer 
Manufacturing  Co.,  Chicago,  111. : 

Hearings :  Pages  244-255. 

The  witness,  as  a  manufacturer,  asks  for  reasonable  protection 
against  present  abnormal  conditions,  due  to  low  foreign  labor  costs 
and  depreciated  currencies.  His  company  is  exclusively  engaged  in 
making  toy  trains,  of  which  it  made  875,000  complete  outfits  in  1920. 
At  that  time  400  persons  were  employed;  to-day  the  plant  is  com- 
pletely closed  down.  German  trains  are  now  coming  in,  since  the 
first  of  1921,  at  prices  which  divert  business  from  American  plants, 
even  to  the  extent  of  canceling  orders  already  booked.  Detailed 
examples  of  comparative  prices  were  cited  by  the  witness,  who  stated, 
on  the  authority  of  the  United  States  Bureau  of  Foreign  and  Do- 
mestic Commerce,  that  11  months'  imports  of  toys,  ending  May,  1921, 
amounted  to  $9,122,000,  as  compared  with  $4,931,000  for  the  corre- 
sponding period  a  year  earlier. 

The  witness  is  confident  that  American  valuation  will  give  the 
American  manufacturer  a  chance  to  continue  in  business;  it  will 
not  inflate  prices  to  the  consumer.  With  American  valuation  a  duty 
of  40  per  cent  would  insure  protection,  while  without  it  probably 
100  per  cent  would  be  necessary. 

Witness :  Mr.  Joseph  F.  Lockett,  counsel  for  the  New  England  Im- 
porters and  Traders'  Association  (Inc.). 

Hearings :  Pages  255-263. 

The  organization  represented  has  100  members  engaged  in  import- 
ing various  kinds  of  merchandise  into  New  England.  The  associa- 
tion is  vehemently  opposed  to  the  bill.  Neither  as  regards  the 
alleged  necessity  of  a  greater  degree  of  protection  to  meet  abnor- 
mal exchange  conditions  nor  as  to  the  existence  of  undervaluation 
does  it  agree  with  the  advocates  of  American  valuation.  The 
witness  did  not  wish  to  discuss  the  exchange  question  if  he  could 
help  it,  another  witness  being  scheduled  in  that  connection,  but  he 
felt  .that  there  had  been  an  absence  of  proof  in  the  charges  con- 


cerning  undervaluation.      Unexplained,   he    regards   that   term    as 


t  pr 
,   h( 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  15 

implying  fraud  on  the  part  of  an  importer.  In  Boston,  at  any  rate, 
cases  of  undervaluation  are  very  rare. '  Undervaluation  has  become 
an  obsession  with  some  American  manufacturers,  among  whom  there 
has  also  been  a  tendency  to  believe  that,  because  of  the  tremendous 
depression  in  business,  the  enactment  of  the  American  valuation  plan 
will  prove  to  be  a  panacea  for  all  ills. 

The  witness  suggests,  in  the  event  of  American  valuation  being 
adopted,  the  insertion  of  a  provision  shifting  the  burden  of  proof. 
Then,  when  the  Government  raises  the  value  upon  appraisement,  it 
would  have  to  establish  its  case  before  the  courts  by  a  preponder- 
ance of  evidence.  That  is  the  reverse  of  the  present  practice.  The 
witness,  with  many  years'  experience  in  the  trying  of  customs  cases, 
has  never  had  any  difficulty  in  obtaining  evidence  of  foreign  value 
abroad:  neither  has  the  Government  in  the  cases  coming  to  his 
knowledge. 

Witness:  Mr.  Thomas  J.  Doherty,  representing  the  National 
Council  of  American  Importers  and  Traders,  New  York  City. 

Hearings:  Pages  264-299  and  339-342. 

This  organization  of  over  300  members,  located  in  practically  all 
the  large  and  in  some  of  the  smaller  cities  of  this  country,  is  the 
outcome  of  a  meeting  held  early  in  1921.  T^ie  present  outlook  is  that 
importers  will  need  all  the  assistance  they  can  summon  to  their  aid. 

The  council  regards  as  its  principal  interest  in  pending  tariff 
legislation  the  question  of  American  valuation.  In  particular  it  is 
amazed  at  the  proposed  grant  of  power  to  the  appraising  officers 
under  the  second  half  of  section  402  of  H.  E.  7456.  The  section  is 
unsound  economically  and  out  of  harmony  with  the  canons  of  good 
business.  It  does  not  comport  with  the  facts  and  realities  of  inter- 
national commerce  nor  with  the  transactions  of  business  life.  It  is 
manifest  that  an  importer  can  not  know  what  the  prices  prevailing 
are  or  will  be  a  year  or  nine  months  hence.  There  may,  too,  be  no 
comparable  article  at  the  time  an  order  is  placed,  yet  one  may  pos- 
sibly be  made  in  the  interim,  and  the  importer  will  not  know  on 
which  basis  his  goods  will  be  appraised. 

Much  depends  upon  the  definition  of  the  word  "  comparable."  If 
"  identity  "  is  meant,  say  so ;  but  there  would  be  in  that  case  so 
limited  a  class  that  it  is  not  worth  while  to  upset  the  whole  tariff 
system  of  the  United  States.  A  large  part  of  the  witness's  time  was 
occupied  by  a  discussion  of  possible  rulings  on  various  imports,  with 
particular  reference  to  the  difficulties  likely  to  arise  in  regard  to 
comparability  and  undervaluation.  He  regards  undervaluation  as 
a  bugaboo  that  has  been  invoked  at  every  tariff  hearing  since  time 
out  of  mind.  He  does  not  think  it  is  justified  by  anything  in  the 
way  of  facts  or  records.  Questioned  as  to  inconsistencies  to  be  found 
in  going  through  statistics  of  imports  and  duties,  such  as  the  same 
article  being  charged  20  cents  at  one  time  and  $2  at  another,  he  had 
himself  been  surprised  by  them,  but  surmised  that  they  were  due  to 
varying  conditions  of  trade  or  extraordinary  transactions. 

The  witness  filed  (pp.  291-299)  a  "  Summary  statement  based  on 
American  selling  price,  consisting  mainly  of  several  pages  of  tables, 
covering  206  individual  import  transactions.  He  also  filed  (pp.  339- 
342)  a  "Supplementary  statement,"  mainly  directed  in  refutation  of 


16  DIGEST   OF   TARIFF    HEARINGS,   H.  R.    7456. 

the  argument  that  the  American  valuation  plan  is  put  forward  only 
to  meet  an  emergency  due  to  the  fluctuations  of  foreign  exchange. 

Page  342  contains  a  letter  from,  and  an  affidavit  by,  Mr.  R,  E. 
Farrow,  commissioner  of  customs  and  excise,  Ottawa,  Canada,  deny- 
ing certain  statements  made  bv  Mr.  Doherty  (not  referred  to  in 
this  digest)  in  regard  to  Canadian  customs  administration.  On  pages 
5419-5420,  Mr.  Doherty  explains  that  any  false  or  misleading  impres- 
sions caused  by  statements  of  his  were  entirely  unintentional  on  his 
part  and  may  have  been  due  to  assumptions,  by  others,  that  Mr. 
Farrow  was  the  only  source  of  his  knowledge. 

Witness :  Mr.  Emil  Pevny,  manufacturer  of  cotton  gloves,  Oswego, 
N.  Y. 

Hearings:  Pages  300-305. 

The  American  industry  represented  by  the  witness  did  not  exist 
before  the  war.  During  and  since  the  war,  the  witness  has  exported 
these  products  to  Australia,  New  Zealand,  Norway,  and  South  Amer- 
ica. Everything  in  this  connection  hinges  upon  German  importa- 
tions, as  it  is  impossible  to  compete  with  German  wages — one-tenth 
of  American  to-day.  It  must  be  remembered  also  that  while  do- 
mestic manufacturers  are  using  the  finest  grade  of  American-grown 
cotton,  the  Germans  go  to  Liverpool  and  buy  Egyptian.  "  Every  pair 
of  German-made  cotton  gloves  coming  into  this  country  to-day  is  of 
Egyptian  yarn,  and  we  have  to  lay  idle  and  see  this  market  flooded 
with  German  importations."  German-made  gloves  are  being  shipped 
to  Switzerland,  minus  only  the  fasteners.  After  the  clasps  have 
been  put  on  there,  the  consular  invoice  is  obtained  and  the  gloves 
are  sent  to  Canada  as  Swiss  goods. 

The  witness  filed  a  brief  in  which  he  refers  to  American  valua- 
tion as  "  the  only  way  to  safeguard  us  from  a  most  resourceful  and 
unscrupulous  competitor." 

Witness :  Mr.  Charles  C.  Ormsby,  representing  manufacturers  of 
suecled  cotton  fabric  and  gloves. 

Hearings :  Pages  305-308. 

This  is  a  post-war  industry  which,  up  to  the  end  of  1918,  had  at- 
tained considerable  importance.  Addressing  himself  to  the  question 
of  American  valuation,  the  witness  regards  the  existing  system  of 
foreign  valuation  of  imports  as  a  failure.  Results  of  the  present 
tariff,  in  money  to  the  United  States  Government,  have  been  far 
below  the  estimates,  this  being  accounted  for  by  low  valuation  (due 
to  low  foreign  wages)  or  to  evasion  of  duty.  Owing  to  German 
competition  the  domestic  industry  is  to-day  at  a  standstill. 

The  popular  understanding  of  dutiable  value  being  the  American 
price,  it  seems  due  to  the  American  people  that  their  views  and 
thought  should  be  considered.  The  law  should  represent  public 
opinion. 

In  a  brief  filed  by  the  witness,  this  country's  obligations  to  other 
countries  under  the  most-favored-nation  clause  of  treaties  are  empha- 
sized. Only  by  the  adoption  of  American  valuation  can  other  coun- 
tries, with  varying  costs  of  production,  be  placed  on  terms  of  equality 
as  regards  American  customs  duties.  The  question  is  asked :  "  Why 
continue  .a  tariff  law  that  practically  vests  in  foreigners  the  ap- 
praisal of  duties  over  which  the  United  States  has  no  practical 
control?" 


DIGEST  OF   TARIFF    HEARINGS,   H.    R.    "456.  17 

Witness :  Mr.  Ernest  Jones,  manufacturer  of  sueded  cotton  cloth, 
Gloversville,  N.  Y. 

Hearings :  Pages  308-309. 

This  cloth,  before  the  war,  was  imported  by  glove  manufacturers 
who  have  since  succeeded  in  having  it  made  in  this  country,  first  from 
English  and  later  from  American  yarns.  At  the  present  time  German 
goods  are  again  flooding  this  market,  and  there  is  absolutely  no  de- 
mand for  the  domestic  product.  The  machinery  of  closed  mills  will 
be  restarted  if  American  valuation  can  be  secured. 

From  the  witness's  recent  observation,  similar  conditions  prevail 
in  Great  Britain,  where  German-made  gloves  are  offered  in  dry- 
goods  stores  at  half  the  price  of  English  goods. 

Witness:  Mr.  Thomas  H.  Hall,  representing  the  Fabric  Glove 
Manufacturers'  Association,  Jersey  City,  N.  J. 

Hearings :  Pages  309-310. 

Starting  this  business  during  the  war  as  an  absolutely  new  in- 
dustry, a,  maximum  production  of  1,300,000  dozen  was  attained  in 
1918.  Since  then  the  business  has  been  declining,  the  vanishing  point 
being  nearly  reached.  A  review  of  labor  conditions  demonstrates 
that  nothing  but  the  American  valuation  plan  can  help  the  industry 
through.  The  low  wage  scale  of  German  workers  was  referred  to, 
showing  the  actual  labor  costs  in  Germany  to  be  little  more  than 
one-half  of  what  they  were  in  1914,  while  American  labor  costs  have 
doubled  in  the  same  period.  Taking  into  account  differences  accord- 
ing to  proficiency,  domestic  producers  are  paying  to-day  ten  times 
the  German  labor  costs. 

Witness:  Mr.  Charles  S.  Hollander,  vice  president  of  Rohm  & 
Haas  Co.,  Bristol,  Pa. 

Hearings:  Pages  310-312. 

The  company  makes  chemicals  for  the  textile  and  leather  trades. 
A  study  shows  that  if  the  American  valuation  is  withdrawn  from 
the  schedule  of  rates  in  H.  R.  7456  the  company  will  have  no  pro- 
tection whatever.  Even  as  the  rates  stand,  the  protection  is  so  scant 
that  it  may  be  necessary  in  some  instances  to  stay  out  of  the  busi- 
ness permanently.  The  competition  comes  mainly  from  Germany, 
and  to  some  extent  from  England.  Since  December,  1920,  enough 
sodium  hydrosulphite  has  been  imported  from  Germany  to  supply 
the  American  market  for  almost  three-quarters  of  a  year  at  the  1913 
rate  of  use. 

There  is,  in  the  case  of  chemicals,  no  difficulty  whatever  in  show- 
ing comparable  and  competitive  goods  or  in  ascertaining  the  Ameri- 
can value. 

Witness:  Mr.  W.  W.  Nichols,  representing  the  Electrical  Manu- 
facturers' Council,  New  York  City. 

Hearings :  Pages  312-313. 

The  witness  confined  his  testimony  to  his  experience  as  head  of 
an  American  industrial  commission,  traveling  through  France  in 
1916,  when  much  valuable  information  was  gathered.  The  follow- 
ing quotations  from  the  report  of  the  commission  bear  upon  the 
need  for  changes  in  existing  customs  methods — the  witness  being  con- 
tent to  •'  leave  the  rest  to  your  imagination." 


18  DIGEST   OF   TAKIFF   HEARINGS,   H.  R.    7456. 

The  commission  anticipated  that  it  would  be  called  upon  to  discuss  this 
much-mooted  question  at  Limoges,  and  made  its  preparations  accordingly. 
Reference  is  made  to  it  here  only  because  there  have  arisen  difficulties  through 
our  tariff  administration  which,  in  their  continuance,  can  only  act  as  deter- 
rents to  the  extension  of  our  trade  (p.  20). 

An  international  device  (tariff),  which  should  be  certain  and  uniform  in  its 
action,  is  so  disturbed  by  fluctuations  of  both  rates  of  exchange  and  prices 
as  to  make  proper  application  impossible  and  to  appear  to  impugn  the  honesty 
of  innocent  parties.  For  the  sake  of  the  world  trade,  which  is  destined  to 
become  of  growing  importance  in  the  commerce  of  the  United  States,  most 
serious  and  early  attention  should  be  given  this  phase  of  our  tariff  law  (p.  21). 

Another  very  important  matter  affecting  our  trade  with  France  is  the  tariff 
question.  Past  tariff  difficulties  between  France  and  the  United  States  led  to 
a  continuous  reference  to  the  subject  on  the  part  of  our  French  friends. 
*  *  *  All  France  is  informed  regarding  the  notorious  Limoges  china  case. 
This  unpleasant  incident  has  left  a  profound  resentment  in  French  manufac- 
turing circles,  and  was  frequently  used  as  an  illustration  of  what  was  found 
most  objectionable  in  our  customs  administration  methods.  The  difficulty  of 
establishing  the  dutiable  market  value  and  the  unwillingness  of  our  Treasury 
Department  to  accept  their  invoice  value  as  correct,  are  annoyances ;  but, 
above  all,  the  insistence  of  our  special  Treasury  agents  upon  the  right  to  inspect 
private  books,  the  labor  costs,  the  costs  of  raw  materials,  etc.,  is  particularly 
resented.  They  feel  this  last  to  be  an  unwarranted  intrusion  upon  the  private 
affairs  of  the  citizens  of  a  friendly  nation,  and  they  can  not  be  convinced  that 
information  of  this  kind,  if  given,  will  not  be  diverted  to  improper  use  and 
reach  their  competitors  in  the  United  States. 

Witness:  Mr.  C.  T.  Kiotte,  representing  the  Veiling  Association 
of  New  York. 

Hearings :  Pages  313-316. 

Buying  both  abroad  and  in  the  United  States,  the  witness  does  not 
buy  abroad  from  stock  for  immediate  delivery,  but  goods  to  be 
manufactured  and  delivered  anywhere  from  one  to  six  months  from 
the  date  of  order.  Under  the  American  valuation  plan  it  is  going 
to  be  impossible  for  the  importer  to  tell  what  merchandise  is  going 
to  cost  him,  for  he  will  not  know  whether  or  not  a  comparable 
American  article  will  have  been  made  by  the  time  his  shipment  has 
been  made. 

Most  of  the  members  of  the  association  are  jobbers,  selling  to  re- 
tailers throughout  the  United  States;  as  the  overhead  expense 
amounts  to  at  least  20  per  cent,  gross,  it  is  impossible  to  figure  on 
less  than  30  per  cent  gross  profit.  In  this  way  an  article  costing  $1 
abroad,  selling  under  the  present  duty  at  $2.35,  would  have  to  be 
sold,  under  American  valuation,  at  the  impossible  figure  of  $4.20 
in  order  to  make  the  same  profit.  Veils  are  now  being  imported  from 
France  which  can  not  be  made  here  at  any  price.  Veilings  can  not 
be  appraised  by  adding  a  fixed  percentage  to  an  assumed  cost  of 
production;  they  are  artistic  goods — articles  of  style — with  thou- 
sands of  patterns. 

Witness :  Mr.  Nathaniel  Van  Doren,  customs  agent,  United  States 
Treasury  Department,  Port  of  New  York. 

Hearings:  Pages  316-323. 

In  his  official  experience  of  18  years  the  witness  has  met  with  con- 
siderable undervaluation  by  foreign  shippers,  and  in  some  cases  by 
domestic  importers.  Not  all  such  undervaluation  was  fraudulent; 
some  of  it  has  been  due  to  changes  in  value,  with  possible  loss  of 
customs  revenue  if  the  invoice  statement  had  been  accepted.  Re- 
ports of  the  foreign  investigating  service  show  that  the  difficulty  of 


DIGEST  OF   TARIFF   HEARINGS,   H.    R,    7456.  19 

obtaining  the  actual  foreign  value,  as  defined  by  law,  makes  it  im- 
possible to  appraise  all  merchandise  at  its  true  foreign  value.  Giving 
full  credit  to  the  integrity  and  competence  of  appraising  officers, 
the  witness  is  unable  to  believe  that  the  Government  receives  the 
proper  measure  of  protection  to  the  revenue  by  the  existing  system. 
He  can  see  no  insurmountable  obstacle  to  carrying  out  the  provisions 
of  H.  R.  7456,  provided  proper  preparation  is  made  before  the  bill 
becomes  a  law. 

In  view  of  the  depreciated-currency  situation  and  the  widespread 
business  depression  throughout  the  world,  the  witness  thinks  the  time 
ripe  for  this  country  to  insure  the  protection  of  its  customs  revenue ; 
the  foreign  valuation  system  is  not  going  to  insure  that  result  so  well 
as  when  values  can  be  ascertained  and  acted  upon  here. 

Witness :  Mr.  George  F.  Lamb,  United  States  special  attorney, 
Division  of  Customs,  Department  of  Justice. 

Hearings :  Pages  323-334. 

The  witness's  30  years'  experience  with  the  customs  in  various 
capacities  leads  him  to  favor  the  American  valuation  plan.  As  one 
reason,  its  adoption  would  compel  low-labor-cost  countries  to  pay  the 
same  amount  of  duty  on  similar  imports  as  countries  having  high 
labor  costs.  It  would  also  do  away  with  the  irritation  caused  in 
foreign  countries  by  the  investigations  of  United  States  special  agents. 
And  it  would  tend  to  prevent  undervaluations,  in  regard  to  which  he 
cited  recent  instances. 

The  witness  regards  as  a  very  weak  first  line  of  defense  against 
undervaluations  the  six  special  agents  in  foreign  countries.  Reliance 
is  still  largely  placed  upon  the  invoices — admittedly  a  pretty  uncer- 
tain reliance.  There  would  be  much  greater  ease  in  securing  evidence 
as  to  the  market  value  under  the  American  valuation  plan  than -under 
the  present  system.  Something  had  been  said  about  the  cost  of 
installing  the  American  valuation  plan,  but  the  increase  in  the  amount 
of  duties  collected  by  cutting  off  undervaluation  would  far  more 
than  pay  for  the  cost.  Once  established,  its  cost  would  decrease. 
There  will,  of  course,  be  litigation,  but  that  follows  every  tariff. 

Assuming  that  the  American  manufacturers'  associations  are  really 
interested  in  the  plan,  they  will  cooperate  in  turning  over  all  needed 
costs  and  selling  prices  down  to  the  smallest  things  they  sell.  Speak- 
ing of  the  examiners  in  the  customs  service  at  New  York  City,  the 
witness  does  not  know  of  a  more  hard-working  or  more  conscientious 
body  of  Government  employees.  But,  in  the  last  analysis,  they  have 
to  rely  on  statements  made  to  them  by  importers  and  people  in  the 
same  line  of  business,  and  the  present  system  breaks  down  where 
fraudulent  undervaluation  is  involved. 

Witness :  Mr.  Charles  D.  Lawrence,  United  States  special  attorney, 
Division  of  Customs,  Department  of  Justice. 

Hearings:  Pages  334-339. 

Taking  the  statement  in  H.  R.  7456  that  it  is  a  bill,  or  an  act,  to 
produce  revenue,  to  regulate  commerce  with  foreign  countries,  and 
to  encourage  the  industries  of  the  United  States,  the  question  natu- 
rally arises,  What  means  are  the  most  efficient,  expedient,  and  feasible 
for  accomplishing  its  purpose?  The  objections  to  the  American 


20  DIGEST   OF   TARIFF    HEARINGS,   H.  R.   7456. 

valuation  plan  forming  part  of  the  bill  are,  in  his  opinion,  largely 
the  outgrowth  of  speculation  and  fear — a  natural  hysteria  always 
found  accompanying  any  new  legislation  of  any  importance.  An 
argument  of  commanding  importance  in  favor  of  that  plan  is  that 
the  basis  for  duty,  applicable  to  all  countries  alike,  shall  be  the  whole- 
sale value  of  goods  in  a  country  common  to  them  all — the  United 
States.  Instead  of  seeking  out  Values  in  the  numerous  markets  of 
the  world,  why  not  follow  the  simpler  plan  to  find  values  at  first 
hand?  Many  difficulties  arise  under  the  present  system,  including 
the  rejection  by  the  courts  of  evidence  presented  by  United  States 
special  agents  on  the  ground  that  it  is  hearsay.  The  American 
valuation  plan  would  increase  revenue  in  certain  cases  by  the  pro- 
vision that,  irrespective  of  cost  of  production,  similar  goods  would 
always  be  valued  alike  for  duty.  It  would,  in  effect,  be  placing  mer- 
chandise upon  a  specific-duty  basis ;  opportunities  for  evasion  would 
be  greatly  reduced;  and  fraudulent  undervaluation  would  be  dis- 
couraged* if  not  entirely  eliminated. 

Touching  the  objection  by  importers  that  they  will  not  know  what 
their  cost  price  is  to  be  three  months  ahead  of  time,  the  witness  does 
not  think  that  a  business  man  would  place  orders  very  far  ahead 
without  some  approximate  knowledge  of  what  the  goods  would  be 
worth  on  their  arrival  in  this  market. 

Witness:  Mr.  L.  T.  Scaramelli,  representing  the  Italian  Chamber 
of  Commerce  of  New  York. 

Hearings :  Pages  5108-5111. 

In  a  brief  filed  with  the  committee  the  witness  refers  to  the  pro- 
visions of  Title  IV,  section  402,  as  likely  to  have  far-reaching  and 
international  effects  upon  trade  in  general,  the  cost  of  living,  indus- 
trial domestic  prosperity,  and  foreign  revenues. 

Objection  to  the  American  valuation  plan  includes  the  excessive 
raising  of  tariff  duties  owing  to  the  percentage  basis  being  on  much 
higher  units  of  cost;  the  reduction  of  foreign  buying  to  guesswork, 
speculation,  and  practically  gambling;  the  immediate  and  exhaustive 
research  work  required  to  establish  comparable  values  for  each  com- 
modity, followed,  as  this  must  be,  not  only  by  great  loss  of  time  but 
by  litigation  as  well;  the  practical  impossibility  of  keeping  track 
of  the  thousands  of  articles  subject  to  ad  valorem  duties — laces  alone 
accounting  for  5,000  numbers.  It  is  alleged  also  that  payment  of  duty 
upon  duty — pyramiding — would  be  unavoidable,  with  the  ultimate 
result  of  actually  prohibiting  imports  in  certain  lines.  The  inevitable 
reduction  of  American  imports  would  be  such  as  to  seriously  impair 
customs  revenue  and  ultimately  to  reduce  American  exports,  to  raise 
prices,  to  increase  unemployment,  and  business  depression. 

The  brief  directs  attention  to  what  is  believed  to  be  the  fallacy 
involved  in  many  arguments,  in  regard  to  depreciated  foreign  cur- 
rencies: also  to  the  fact  that  Italy  is  one  of  the  United  States'  best 
customers.  The  abandonment  of  the  American  valuation  plan  is 
requested. 


LISTS  OP  COMMUNICATIONS  ADDRESSED  TO  THE  SENATE  COMMITTEE  ON  FINANCE,  GIVING 
EXPRESSION  TO  THE  VIEWS  OF  CHAMBERS  OF  COMMERCE,  PUBLIC  UTILITY  CORPORA- 
TIONS, MANUFACTURERS,  IMPORTERS,  AND  OTHERS  IN  REGARD  TO  THE  AMERICAN 
VALUATION  FEATURE  OF  THE  BILL,  H.  R.  7456,  A  TOTAL  OF  1,205  COMMUNICATIONS. 

LIST  A. 

Alphabetical  list  of  firms  and  individuals  approving  the  American  valuation  plan  who 
have  submitted  their  views,  by  letters  or  telegrams,  to  the  Senate  Committee  on  Finance. 

Abbott,  George  E Hartford,  Conn. 

Acme  Shear  Co , Bridgeport,  Conn. 

Actors'  Equity  Association New  York  City. 

Adams,  Robert Providence,  R.  I. 

Adler,  Jacob,  &  Co Gloversville,  N.  Y. 

Akron  Merchants'  Association Akron,  Ohio. 

Alabama  Graphite  Creditors New  York  City. 

Alabama  Manufacturers'  Association 

Albion  Kaolin  Co Augusta,  Ga. 

Alderman  Fairchild  Co Rochester,  N.  Y. 

Allandale  Knitting  Mills New  York  City. 

Allegany  Window  Glass  Co Port  Allegany,  Pa. 

American  Association  of  Flint  &  Lead  Glass  Manufac- 
turers  Pittsburgh,  Pa. 

American  Bobbinet  Co Newburgh,  N.  Y. 

American  Chain  Co Bridgeport,  Conn. 

American  Colortype  Co Chicago,  111. 

American  Craven  Co Sandusky,  Ohio. 

American  Crayon  Co New  York  City. 

American  Cutlery  Co Chicago,  111. 

American  Doll  Manufacturers  (Inc.) New  York  City. 

American  Electric  Works Providence,  R.  I. 

American  Enameled  Magnet  Wire  Co Muskogee,  Mich. 

American  Flint  Glass  Workers'  Union Morocco,  Ind. 

American  Flyer  Manufacturing  Co Chicago,  111. 

American  Gear  Manufacturers'  Association Cleveland,  Ohio. 

American  Glue  Co Boston,  Mass. 

American  Hardware  Manufacturers'  Association New  York  City. 

American  Lace  Manufacturing  Co Elyria,  Ohio. 

American  Manganese  Manufacturing  Co Philadelphia,  Pa. 

American  Manufacturers  of  Shears  and  Scissors Newark,  N.  ,T. 

American  Metal  Ware  Co Chicago,  111. 

American  Mills  Co Waterbury,  Conn. 

American  Novelty  Co Ansonia,  Conn. 

American  Optical  Co Southbridge,  Mass. 

American  Pin  Co Waterbury,  Conn. 

American  Protective  Tariff  League New  York  City. 

American  Ribbon  &  Carbon  Co Rochester,  N.  Y. 

American  Steel  Wool  Manufacturing  Co New  York  City. 

American  Swiss  Tile  &  Tool  Co New  York  City. 

American  Textile  Co.  (Inc.) Pawtucket,  R.  I. 

American  Tool  Works  Co Cincinnati,  Ohio. 

American  Valuation  Association. New  York  City. 

American  Veiling  Co New  York  City. 

American  Vitrified  China  Manufacturers'  Association.  .Wheeling,  W.  Va. 

American  Window  Glass  Co Pittsburgh,  Pa. 

American  Woodworking  Machinery  Co Rochester,  N.  Y. 

Arizona  Merchants'  Association Phoenix,  Ariz. 

Armstrong's  City  Pharmacy Warwick,  N.  Y. 

Armstrong  Cork  Co Pittsburgh,  Pa. 

Arthe,  Levy,  Bernhard  Co New  York  City. 

Asbestos  Fiber  Spinning  Co North  Wales,  Pa. 

Asheville  Mica  Co Asheville,  N.  C. 

77134—22 3  21 


22  DIGEST  OF   TARIFF   HEARINGS,  H.  R.   7456. 

Associated  Employers Utica,  N.  Y. 

Associated  Glove  Manufacturers Gloversville,  N.  Y. 

Associated  Industries  of  Idaho 

Associated  Industries  of  Kansas 

Associated  Industries  of  Maine 

Associated  Industries  of  Missouri 

Associated  Industries  of  Montana 

Associated  Industries  of  North  Dakota 

Associated  Industries  of  Vermont 

Associated  Manufacturers  of  Electrical  Supplies New  YorV.  City. 

Associated  Tile  Manufacturers Beaver  Falls,  Pa. 

Athenia  Steel  Co New  York  City. 

Athletic  Knitting  Mills Chicago,  111. 

Atkins  &  Pearce  Manufacturing  Co Cincinnati,  Ohio. 

Atlantic  Steel  Co Atlanta,  Ga. 

Atlantic  Tubing  Co .' Providence,  R.  I. 

Atlas  Crucible  Steel  Co Buffalo,  N.  Y. 

Atlas  Powder  Co Wilmington,  Del. 

Augstein,  S.,  &  Co New  York  City. 

Austin  Cicero  Manufacturers'  Association Chicago,  111. 

Autoyre  Co Oakville,  Conn. 

Avenll  Manufacturing  Co New  York  City. 

B.  Z.  B.  Knitting  Co Rockford,  111." 

Bagshaw,  W.  H Lowell,  Mass. 

Baker,  A.  G.,  Co.  (Inc.) Johnstown,  Pa. 

Baker  &  Bennett  Co New  York  City. 

Baker  &  Co.  (Inc.) Newark,  N.  J. 

Baker,  Hugh  P > New  York,  N.  Y. 

Baker,  William  T.  (Inc.) Jersey  City,  N.  J. 

Baldwin  Cutlery  Co Tidioute,  Pa. 

Baldwin  Manufacturing  Co Philadelphia,  Pa. 

Barksdale,  J.  H Nashville,  Tenn. 

Battelle  &  Renwick New  York  City. 

Bausch  &  Lomb  Optical  Co '. Rochester,  N.  Y. 

Bailsman,  George  A Springfield,  Mass. 

Bay  State  Tap  &  Die  Co Mansfield,  Mass. 

Beade  Chain  Manufacturing  Co Bridgeport,  Conn . 

Becker  Milling  Machine  Co Boston,  Mass. 

Bedford  China  Co Bedford,  Ohio. 

Beek  Glove  Co Richmond,  Ind. 

Beggs  &  Graham Philadelphia,  Pa. 

Beistle  Co Shippensburg,  Pa. 

Belden  Manufacturing  Co Chicago,  111. 

Bender-Zimmer  Co Milwaukee,  Wis. 

Benedict,  Frank  R Walden,  N.  Y. 

Benjamin  Electric  Manufacturing  Co Chicago,  111. 

Bennett,  Edwin,  Pottery  Co Baltimore,  Md. 

Bergstrom  Paper  Co Neenah,  Wis. 

Berkshire  Cotton  Manufacturing  Co Adams,  Mass. 

Berridge  Shear  Co Sturgis,  Mich. 

Bertha  Coal  Co Pittsburgh,  Pa. 

Betts  Machine  Co Rochester,  N.  Y. 

Bevin  Bros.  Manufacturing  Co East  Hampton,  Conn. 

Beyer's  Drug  Store Punxsutawney,  Pa. 

Bigelow  Co New  Haven,  Conn. 

Bigney,  S.  O Attleboro,  Mass. 

Binswauger,  H.  P New  York  City. 

Blair  Manufacturing  Co Springfield,  Mass. 

Blum  Shoe  Co Danville,  N.  Y. 

Board  of  Trade Warville,  N.  Y. 

Bogen,  Berman  &  Fox New  York  City. 

Boston  Pottery  Co.  (Inc.) Boston,  Mass. 

Bough  &  Sons  Co Philadelphia,  Pa. 

Bower,  Henry,  Chemical  Manufacturing  Co Philadelphia,  Pa. 

Bradley  Knitting  Co Delavan,  Wis. 

Bradley,  Milton,  &  Co Springfield,  Mass. 

Braid  Manufacturers'  Association. . .  ...  Brooklyn.  N.  Y. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  23 

Bridgeport  Coach  Lace  Co Bridgeport,  Conn. 

Bridgeport  Hardware  Manufacturing  Co Bridgeport,  Conn. 

Bristal  Knitting  Mills New  York  City. 

Bromund,  E.  A New  York  City. 

Brooke,  R.  T Birmingham,  Ala. 

Brooke,  George,  &  Son  Co Philadelphia,  Pa. 

Brooks,  U.  B Boston,  Mass. 

Brown  &  Sharpe  Manufacturing  Co Providence,  R.I. 

Brown-Lipe  Gear  Co .Syracuse,  N.  Y. 

Brown,  William,  Co Philadelphia,  Pa. 

Brownville  Board  Co Brownville,  N.  J. 

Brubaker,  W.  L.,  &  Bros Millersburg,  Pa. 

Bryant  Electric  Co Bridgeport,  Conn. 

Bubb,  U.  B Williamsport,  Pa. 

Buckeye  Twist  Drill  Co Alliance,  Ohio. 

Burke  Electric  Co Erie,  Pa. 

Burke  Golf  Co Newell,  Ohio. 

Burleson,  J.  E Spruce  Pine,  N.  C. 

Burlington  Basket  Co Burlington,  La. 

Burson  Knitting  Co Rockford,  111. 

Burt,  John  D New  York  City. 

Butterfield  &  Co.  (Inc.) Derby  Line,  Vt. 

Byers,  A.  M.,  Co Pittsburgh,  Pa. 

Byerts.  W.  E Des  Moines,  Iowa. 

Cabot,  Samuel  (Inc.) •. . .  .Boston,  Mass. 

Cadet  Knitting  Co Chicago,  111. 

Caldwell,  Edward  F.,  &  Co.  (Inc.) New  York  City 

California  Cotton  Mills  Co Oakland,  Calif 

California  Manufacturers'  Association Oakland,  Calif. 

Calkins,  G.  H Buffalo,  N.  Y. 

Callahan  Zinc  Lead  Co Wallace,  Idaho. 

Camp,  Walter Gloucester,  Mass. 

Campbell,  George Niagara  Falls,  N.  Y. 

Cantrell,  P.  H Little  Rock,  Ark. 

Carbon  Products  Co Lancaster,  Pa. 

Card,  S.  W.,  Manufacturing  Co Mansfield,  Mass. 

Caron  Spinning  Co Rochelle,  111. 

Carpenter  Steel  Co Reading,  Pa. 

Carrom  Co Ludington,  Mich. 

Case,  W.  R.,  &  Sons  Cutlery  Co Bradford,  Pa. 

Cattarangus  Cutlery  Co Little  Valley,  N.- Y, 

Celluloid  Co New  York  City. 

Century  Doll  Co New  York  City. 

Century  Electric  Co St.  Louis,  Mo. 

Challenge  Cutlery  Corporation Bridgeport,  Conn. 

Challenge  Machinery  Co Grand  Haven,  Mich, 

Chamber  of  Commerce Glove rsville,  N.  Y. 

Chamber  of  Commerce... Hornell,  N.  Y. 

Chamber  of  Commerce Latrobe,  Pa. 

Chamber  of  Commerce Perry,  N.  Y. 

Chamber  of  Commerce Walden,  N.  Y. 

Chant.  W.  B.,  &  Sons  (Inc.l Port  Jervis,  N.  Y. 

Chapin  &  Hollister  Co Providence,  R.  I. 

Chatfield  Manufacturing  Co Cincinnati,  Ohio. 

Chatillon.  G.  E New  York  City. 

Chelsea  China  Co New  Cumberland,  W.  Va. 

Chelsea  Clock  Co Boston,  Mass. 

Chelsea  Fire  Works  (Inc.) Norwich.  Conn. 

Chicago  Gut  String  Manufacturing  Association Chicago,  111. 

Chicago  Nut  Co Chicago,  111. 

City  National  Bank Gloversville,  N.  Y. 

Clasghes.  J.  &  H.,  Co New  Redmond,  Ohio. 

Cleveland  Metal  Products  Co Cleveland,  Ohio. 

Cleveland  Twist  Drill  Co Cleveland,  Ohio. 

Cleveland  Worsted  Mills  Co Cleveland,  Ohio. 

Climax  Molybdenum  Co.  of  Colorado New  York  City. 


24  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Cold  well,  Lawn  Mower  Co Newburgh.  N.  Y. 

Colonial  Steel  Co Chicago,  111. 

Cole  Electric  Light,  Power  &  Rwy.  Association Denver,  Colo. 

Colorado  Confectioner  Association Denver,  Colo. 

Colorado  Manufacturers  &  Merchants'  Association Denver,  Colo. 

Colorado  Metal  Mining  Association Denver,  Colo. 

Columbia  Knitting  &  Manufacturing  Co Milwaukee,  Wis. 

Columbia  Tool  Steel  Co Chicago  Heights,  III. 

Columbian  Enameling  &  Stamping  Co Terre  Haute,  Ind. 

Conneaut  Shovel  Co Conneaut.  Ohio. 

Connecticut  Electric  Manufacturing  Co Bridgeport,  Conn. 

Connecticut  Foundrymen's  Association New  Britain,  Conn. 

Continental  Mills  (Inc.) Philadelphia,  Pa. 

Continental  Paper  and  Bag  Mills New  York  City. 

Continuous  Casting  Corporation Westfield,  N .  Y. 

Cook  Pottery  Co .....Trenton,  N.  J. 

Cook  Spring  Co Ann  Arbor,  Mich. 

Copeland,  E.  S Hornell,  N.  Y. 

Corliss  Carbon  Co Bradford,  Pa. 

Cort-Harrison  Sales  Co. Trenton,  N.  J. 

Cotton,  Geo.  C.,  Electric  Manufacturing  Co East  Hampton,  Mass. 

Cox,  A.  B Knoxville,  Tenn. 

Crane  Bros Kingston,  Pa. 

Crawford,  David  M Walden,  N.  Y. 

Cress,  H.  G.,  Co Troy,  Ohio. 

Crooksville  China  Co Crooksville,  Ohio. 

Grouse  Hinds  Co Syracuse,  N.  Y. 

Crucible  Steel  Co.  of  America New  York  City. 

Crystal  Graphite  Co Dillon,  Mont. 

Culver  Baer  Mining  Co Cloverdale,  Calif. 

Cummings,  A.  B Attleboro,  Mass. 

Cunningham,  James,  Saw  Co 1 Rochester,  N .  Y. 

Curtiss,  H.  A Meriden,  Conn. 

Cutter,  George,  Co South  Bend ,  Ind . 

Cutter  Mail  Chute  Co Rochester,  N.  Y. 

Dakin.  John  E Milton,  Pa. 

Dalton,  William Titusville,  Pa. 

Damon  &  Ellis  (Inc.) Boston,  Mass. 

Daniel  Hays  Co Gloversville,  N.  Y. 

Davis  Hosiery  Co Reading,  Pa. 

Davis,  Charles  B Boston,  Mass. 

De  Jong,  Jacob New  York  City. 

Delaphena,  R.  V.,  &  Co.  (Inc.) New  York  City. 

De  Laval  Separator  Co Chicago,  111. 

Dell,  Samuel  M.,  &  Co Baltimore,  Md. 

Dells  Paper  &  Pulp  Co Eau  Claire,  Wis. 

Delson  Knitting  Mills, Chicago,  111. 

Delta  File  Works Philadelphia,  Pa. 

Deming  Co Salem,  Ohio. 

Dempster  &  Place  Co Gloversville,  N.  Y. 

Dental  Manufacturers'  Club Toledo,  Ohio. 

Denver  Typothatas Denver,  Colo. 

Derby  &  Shelton  Board  of  Trade Derby,  Conn. 

Derby  Gas  &  Electric  Co Derby,  Conn. 

Derk,  Jas.,  &  Co Philadelphia,  Pa. 

Detroit  Twist  Drill  Co Detroit,  Mich. 

Devoe  &  Reynolds  Co.  (Inc.) New  York  City. 

Diamond  Crystal  Salt  Co St.  Glair,  Mich. 

Diamond  State  Fibre  Co Bridgeport,  Pa. 

Diehl  Manufacturing  Co Elizabeth,  N.  Y. 

Diehl,  McGuire  Manufacturing  Co Richmond,  Ind. 

Diller  &  McGuire  Manufacturing  Co Richmond,  Ind. 

Doherty,  Henry,  Silk  Co Clifton,  N.  J. 

Douglas,  W.  &  B Middletown,  Conn. 

Dow  Chemical  Co Midland,  Mich. 

Drake,  A.  W.,  Manufacturing  Co Hazleton,  Pa. 

Drill  &  Reamer  Society New  York  City. 


DIGEST  OF   TARIFF   HEARINGS,  H.   R.   7456.  25 

Dundee  Textile  Co Passaic,  N.  Y. 

Duplex  Moulding  Co Hornell,  N.  Y. 

Dusenbury,  Louis,  &  Co.  (Inc.) New  York   City. 

Dutton,  V Cleveland,  Ohio. 

Dwight  Devine  &  Sons Ellenville,  N.  Y. 

Ewelle-Kaiser  Co Buffalo,  N .  Y. 

Eagle  Knitting  Mills Milwaukee.  Wis. 

Eagle-Picher  Lead  Co Chicago,  111. 

Eagle  Rubber  Co Ashland.  Ohio. 

Eaton,  Crane  &  Pike Pittsfield,  Mass. 

Eaton-Drakeman  Co Lee,  Mass. 

Edgar  Bros Metuchen,  N.  J. 

Edison  Lamp  Works  Co St.  Louis,  Mp. 

Eimer  &  Cemend New  York  City. 

Elbro  Knitting  Mills Milwaukee,  Wis. 

Electric  Storage  Battery  Co Philadelphia,  Pa. 

Electro  Dynamic  Co 

Elgar  James  (Inc.) Hornell,  N.  Y. 

Elite  Glove  Co Gloversville,  N.  Y. 

Elk  County  Manufacturing  Association Ridgeway,  Pa. 

Ellicott  Machine  Corporation Baltimore,  Md. 

Elliott-Fisher  Co Harrisburg,  Pa. 

Ellwood,  Ivins.  Tube  Works Philadelphia,  Pa. 

Emmons  Coal  Mining  Co Philadelphia,  Pa. 

Empire  Knife  Co Winsted,  Conn. 

Employers  Association  of  Fort  Wayne Fort  Wayne,  Ind. 

Employers'  Association  of  New  Haven New  Haven,  Conn. 

Employers'  Association  of  Rhode  Island 

Ensign  Bickford  Co Simsbury,  Conn. 

Enterprise  Manufacturing  Co.  of  Pennsylvania Philadelphia,  Pa. 

Erie  City  Iron  Works Erie,  Pa. 

Eustis.  Augustus  H Boston,  Mass. 

Everlastik Chelsea,  Mass. 

Everwear  Hosiery  Co Milwaukee,  Wis. 

Exelrod  Co.  of  Pennsylvania Stroudsburg,  Pa. 

Exmoore  Knitting  Mills Chicago,  111. 

F.  &  N.  Lawnmower  Co Richmond,  Ind. 

Fabric  Glove  Industry Waterford,  N.  Y. 

Fabric  Glove  Manufacturers'  Association New  York  City. 

Fallmer,  Clogg  &  Co Lancaster,  Pa. 

Farrington  Manufacturing  Co Boston,  Mass. 

Fawer.  Louis New  York  City. 

Federal  Glass  Co Columbus,  Ohio. 

Federal  Industries  of  Washington 

Federal  Knitting  Mills  Co Cleveland,  Ohio. 

Federal  Mill  &  Elevator  Co.  (Inc.) Lockport,  N.  Y. 

Federal  Sign  System  (electric) Chicago,  111. 

Fellerman  Bros 1 New  York  City. 

Ferst,  M.  A.  (Inc.'i Atlanta,  Ga. 

Fiberloid  Corporation New  York  City. 

Fidelity  &  Deposit  Co.  of  Maryland Warwick,  N.  Y. 

Fine  Art  Lace  Co Philadelphia,  Pa. 

Firs   National  Bank Warwick,  N.  Y. 

First  Sterling  Steel  Co McKeesport,  Pa. 

First  Trust  &  Deposit  Co Syracuse,  N.  Y. 

Fisher,  Bruce  &  Co Philadelphia,  Pa. 

Flint  Glass  Workers'  Union Huntington,  W.  Va. 

Follanske  Bros.  Co Pittsburgh,  Pa. 

Ford,  J.  B.,  Co Wyandotte,  Mich. 

Forge  &  Iron  Co .* Pittsburgh,  Pa. 

Fownes  Bros.  &  Co Gloversville,  N.  Y. 

Fox,  A.  H.,  Gun  Co Philadelphia,  Pa. 

Fox  Paper  Co Cincinnati,  Ohio. 

Fox  Paper  Co Lockland,  Ohio. 

Francis,  Robert  T New  York  City. 

Franco-American  Chemical  Works Carlstadt,  N.  J. 

Frankford  Textile  Mills Philadelphia,  Pa. 


26  DIGEST  OF   TARIFF  HEARINGS,   H.  R.   7456. 

Franklin  Knitting  Mills ...  New  York  City. 

Franklin  Needle  Co Franklin,  N.  H. 

Friedlander  Knitting  Co Milwaukee.  Wis. 

Friedman  Blau  Farber  Co ; .  .Cleveland,  Ohio. 

Fritz  Gross  &  Co Philadelphia.  Pa. 

Fulton  County  National  Bank ' Gloversville,  N.  Y. 

Fulton  Countv  Silk  Mills Gloversville,  N.  Y. 

Fur  Felt  Hat  Manufacturers 

Gabriel,  Sam,  Sons  &  Co New  York  City. 

Gage,  F.  L Fargo,  N.  Dak. 

Gaies  Bros Baltimore,  Md. 

Garland  Manufacturing  Co Pittsburgh,  Pa. 

Garrett,  Geo.  K Philadelphia,  Pa. 

Gates,  Mills  &  Co Johnstown,  N.  Y. 

General  Chamber  of  Commerce Geneva,  N.  Y. 

General  Electric  Co ; Akron,  Ohio. 

General  Electric  Co Atlanta,  Ga. 

General  Electric  Co Baltimore,  Md. 

General  Electric  Co.  (Edison  Lamp  Works) Boston,  Mass. 

General  Electric  Co Charlotte,  N.  C- 

General  Electric  Co Chattanooga,  Tenn. 

General  Electric  Co Des  Moines,  Iowa. 

General  Electric  Co. Elmira,  N.  Y. 

General  Electric  Co Erie,  Pa. 

General  Electric  Co Fort  Wayne,  Ind. 

General  Electric  Co Hartford,  Conn. 

General  Electric  Co Jacksonville,  Fla. 

General  Electric  Co Louisville,  Ky. 

General  Electric  Co Memphis,  Tenn. 

General  Electric  Co Minneapolis,  Minn. 

General  Electric  Co Newark,  N.  J. 

General  Electric  Co New  Haven,  Conn. 

General  Electric  Co Pittsburgh,  Pa. 

General  Electric  Co Providence,  R.  I. 

General  Electric  Co San  Francisco,  Calif. 

General  Electric  Co Spokane,  Wash. 

General  Electric  Co Springfield,  Mass. 

General  Electric  Co Terre  Haute,  Ind. 

General  Electric  Co West  Lynn,  Mass. 

General  Insulate  Co Brooklyn,  N.  Y. 

General  Steel  Co Chicago,  111. 

Geneva  Trust  Co Geneva,  N.  Y. 

George  W.  S.  Pottery  Co East  Palestine,  Ohio. 

Georgia  Manufacturers'  Association 

Georgia  Minerals  Co Atlanta,  Ga. 

Gennania  Mills Holyoke,  Mass. 

Gilbert  &  Bennett  Manufacturing  Co Georgetown,  Conn. 

Gilbert,  G.  H Richmond,  Va. 

Giles,  A.  F Atlanta,  Ga. 

Gill,  Elsie Amsterdam,  N.  Y. 

Gillardon,  Louis  H Rockford,  111. 

Gillette  Safety  Razor  Co Boston,  Mass. 

Girard  Model  Works Girard,  Pa. 

Glasgens,  J.  &  H.,  Co New  Richmond,  Ohio. 

Glastenbury  Knitting  Co Glastonbury,  Conn. 

Gleason  Tilbout  Co New  York  City. 

Globe  Prayer  Book  Co.  (Inc.) New  York  City. 

Gloria  Mining  Co Duluth,  Minn. 

Glorie  Underwear  Mill Reading,  Pa. 

Glove  Workers  of  Fulton  County Gloversville,  N.  Y. 

Gloversville  Auto  Glove  Co " , Gloversville,  N.  Y. 

Gong  Bell  Manufacturing  Co Easthampton,  Conn. 

Goodall  Worsted  Co Sanford,  Me. 

Goodman  Bros.  &  Hinelan Philadelphia,  Pa. 

Goodyear  Lumber  Co Buffalo,  N.  Y. 

Gorgas-Pierce  Manufacturing  Co Philadelphia,  Pa. 

Great  Lakes  Knitting  Co Chicago,  111. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  27 

Great  Northern  Chair  Co I Chicago,  111. 

Great  Western  Electric  Chemical  Co San  Francisco,  Calif. 

Green,  Haas,  Schwarz  Co Cleveland,  Ohio. 

Greenfield  Tape  &  Die  Corporation Greenfield,  Mass. 

Greenwood  Pottery  Co Trenton,  N.  J. 

Grey  Iron  Casting  Co Mount  Joy,  Pa. 

Griesmes  Graphite  Co Ashland,  Ala. 

Griffith  Tool  Works Philadelphia,  Pa. 

Griswold  Manufacturing  Co Erie,  Pa. 

Groffer  Knitting  Mills New  York  City. 

Grundv  &  Co.  (Inc.) Philadelphia,  Pa. 

Guay,  E.  A East  Boston,  Mass. 

Guernseyware  Co Cambridge,  Ohio. 

Gulocke,  W.  H.,  Chair  Co Wayland,  N.  Y. 

Gurney  Ball  Bearing  Co Jamestown,  N.  Y. 

H.  &  P.  Glove  Co Johnstown,  N.  Y. 

Hall  China  Co : East  Liverpool,  Ohio. 

Hall,  H.  S.,  &Co Jersey  City,  N.  J. 

Halwick,  J.  H Waldem,  N.  Y. 

Hammermill  Paper  Co Erie,  Pa. 

Hankey,  A.,  &  Co.  (Inc.) Rochdale,  Mass. 

Handknit  Hosiery  Co Sheboygan,  Wis. 

Hanlan  &  Goodman  Co Belleville,  N.  J. 

Hard  Color  Products  Co Sandusky,  Ohio. 

Harper,  Edward  G Chicago, "ill. 

Harrison,  L.  &  S Trenton,  N.  J. 

Harthaway,  F.  B Oklahoma  City,  Okla. 

Hatters '  Fur  Industry  of  the  United  States New  York  City. 

Hazard  Manufacturing  Co Wilkes-Barre,  Pa. 

Hazel-Atlas  Glass  Co Wheeling,  W.  Va. 

Heller  Bros.  Co Newark,  N.  J. 

flenkell  Clauss  Co Fremont,  Ohio. 

Henry,  G.  C Jacksonville,  Fla. 

Henry,  L.  P.,  Sons New  York  City. 

Hensel  Collady  Co. ; Philadelphia,  Pa. 

Hercules  Mining  Co -. Wallace,  Idaho. 

Herman  Bamberger  &  Co New  York  City. 

Herscheide  Clock  Co Cincinnati,  Ohio. 

Herschel,  P.  E Peoria,  111. 

Heyman,  Louis,  &  Bros New  York  City. 

Highland  Iron  &  Steel  Co Bridgeport,  Conn. 

Hillard  &  Merrill  (Inc.) Lynn,  Mass. 

Hirsch,  Daniel New  York  City. 

Hobson,  C.  W Dallas,  Tex. 

Hodges,  William,  &  Co Philadelphia,  Pa. 

Holcomb  Steel  Co Syracuse,  N.  Y. 

Holeproof  Hosiery  Co Milwaukee,  Wis. 

Hollingsworth  Knife  Co Kane,  Pa. 

Hollinsworth,  P.  V Titusville,  Pa. 

Holyoke  Worsted  Mills  ( Inc.) Holyoke,  Mass. 

Hoover  Steel  Ball' Co Ann  Arbor,  Mich. 

Home,  James,  Co Pittsburgh,  Pa. 

Hornell  Lumber  Co.  (Inc.) Hornell,  N.  Y. 

Hornell  Rotary  Club. Hornell,  N.  Y. 

Hornsby,  A.  G Syracuse,  N.  Y. 

Horrokes  Desk  Co Herkimer,  N.  Y. 

Hosiery  Manufacturers'  Legislative  Committee New  York  City. 

Hubbard,  E.  Kent Hartford,  Conn. 

Hub  ley  Manufacturing  Co Lancaster,  Pa. 

Hulse  Bros.  &  Daniels New  York  City. 

Huntington  Tumbler  Co Huntington,  W.  Va. 

Ide,  George  P.,  &  Co.  (Inc.) Troy,  N.  Y. 

Illinois  Manufacturers'  Association 

Imperial  Knitting  Co Milwaukee.  Wis. 

Imperial  Porcelain  Works. Trenton,  N.  J. 

Indiana  Manufacturers'  Association -. 

Ingalla  &  Co Castleton,  N.  Y. 


28  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Ingersoll  Milling  Machine  Co Rockford ,  111. 

Ingraham,  E.,  &  Co Bristol,  Conn. 

International  Monumental  Granite  Producers'  Associa- 
tion  

International  Packing  Corporation  of  California Los  Angeles,  Calif. 

International  Pulp  Co New  York  Citv. 

International  Vulcanizing  Co Patterson,  N.  Y. 

Iowa  Manufacturers'  Association 

Iron  Mountain  Mining  Co Dulutli,  Minn . 

Italian  Coverlet  Co.  (Inc.) New  York  City. 

Jackson  Shear  Co Fremont,  Ohio. 

Jacobus,  C.  R Duluth,  Minn. 

Jenkins,  E.  Wheeler Philadelphia,  Pa. 

Jersild  Knitting  Co Neenah,  Wis. 

Johns-Pratt  Co Hartford,  Conn. 

Johnson  Belting  Co Philadelphia,  Pa. 

Johnson,  L.  G Akron,  Ohio. 

Johnson  Porter  Clay  Co McKenzie,  Tenn. 

Jones  &  Laughlin  Steel  Co Pittsburgh,  Pa. 

Jones  &  Mardin Gloversville,  N.  Y. 

Judson  Manufacturing  Go San  Francisco,  Calif. 

Keller  Knitting  Co Cleveland,  Ohio. 

Kent  Manufacturing  Co Clifton  Heights,  Pa. 

Kenton  Hardware  Co Ken  ton.  Ohio. 

Kentucky  Manufacturers'  Association 

Keuffel  &  Esser  Co Hoboken.  N.  J. 

Kibler,  H.  W Minerva.  Ohio. 

Killark  Electric  Manufacturing  Co St.  Louis,  Mo. 

Kimball,  J.  P Warwick,  N.  Y. 

Kneeland-Beglow,  Co Bay  City,  Mich. 

Knit  Goods  Manufacturers  of  America Utica,  N.  Y. 

Knitted  Outerwear  Manufacturers'  Association Milwaukee,  Wis. 

Knitting  Manufacturers'  Association  of  Cleveland Cleveland.  Ohio. 

Knowles.  Taylor  &  Knowles East  Liverpool.  Ohio. 

Koehl,  William,  Co Cincinnati.  Ohio. 

Korn,  Geo.  W.,  Razor  Manufacturing  Co New  York  Citv. 

Koskie,  Joe Hornell.  N.  Y. 

Krautz  Manufacturing  Co.  (Inc.) Brooklyn,  N.  Y. 

Kreis  &  Hubbard Chicago,  111. 

Kuhn,  E.  C Cincinnati,  Ohio. 

L.  &  C.  Coat,  Suit  &  Dress  Co Hornell,  N.  Y. 

La  Belle  Ironworks Steubensville,  Ohio. 

Lace  Selling  Co New  York  City. 

Lansdale  Mushroom  Co Lansdale.  Pa. 

Larzelere,  Walter  D Philadelphia.  Pa. 

Leaded  Glass  Manufacturers'  Association  of  Western  Pittsburgh,  Pa. 
Pennsylvania. 

Lebanon  Paper  Box  Co Lebanon,  Pa. 

Lee,  Robert  E Tacoma.  Wash. 

Lenning,  Charles,  &  Co.  (Inc.) Philadelphia,  Pa. 

Leonhard,  Theodor,  Wax  Co Paterson,  N.  J. 

Lever,  Oswald,  Co.  (Inc.) . .  .Philadelphia,  Pa. 

Lewis,  L.  H ; Newark,  N.  J. 

Lewis,  W.  M.,  Dweet,  Edward  R Muskegon,  Mich. 

Libbey  Glass  Manufacturing  Co Toledo.  Ohio. 

Limoge  China  Co Sebring,  Ohio. 

Lincoln  Twist  Drill  Co Taunton,  Mass. 

Lindennan,  A.  J.,  &  Haverson  Co Milwaukee,  WTis. 

Lindsay  Light  Co Chicago,  111. 

tipper  Manufacturing  Co.  (Inc. ) Philadelphia,  Pa. 

Lisk  Manufacturing  Co.  (Ltd.) Canandaigua,  N.  Y. 

Local  Union  118,  American  Flint  Glass  Workers Huntington,  W.  Va. 

Locke,  E.  G Camden,  N.  J. 

Logan  Iron  &  Steel  Co . .  .Burnham,  Pa. 

Lord,  Charles  E Hornell,  N.  Y. 

Lowenthal,  Max.,  &  Sons , Rochester,  N.  Y. 

Lucas  &  Kennedy r .Johnstown,  N .  Y. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  29 

Luptons's,  David,  Sons  Co Philadelphia,  Pa. 

Lycoming  Furniture  Co Hughesville,  Pa. 

Lynn  Chamber  of  Commerce Lynn,  Mass. 

Macbeth-Evans  Glass  Co Pittsburgh,  Pa. 

McConway  &  Torley  Co Pittsburgh,  Pa. 

McCoy,  George  W Galveston,  Ind. 

McFarland,  George  O ,x Little  Rock,  Ark. 

McFie&  Edwards Santa  Fe,  N.  Mex. 

McKenney,  H.  B Hornell,  N.  Y. 

McKinney,  M.  O Chattanooga,  Tenn. 

McLellan,  James  D Boston,  Mass. 

McNicol,  D.  E Clarksburg,  W.  Va. 

McNicol,  D.  E.,  Pottery  Co East  Liverpool,  Ohio. 

McNicol,  T.  A.,  Pottery  Co East  Liverpool,  Ohio. 

McVey,  William Walden,  N.  Y. 

Maddock  Pottery  Co Trenton,  N.  J. 

Maine  Spinning'Co Boston,  Mass. 

Maloy,  J.  H New  York  City. 

Manhattan  Umbrella  &  Parasol  Co New  York  City. 

Mann,  James  H.,  Co Laidlow,  Pa. 

Manufacturers  &  Employers'  Association  of  South 
Dakota 

Manufacturers'  Association  of  Berks  County Reading,  Pa. 

Manufacturers'  Association  of  Connecticut  (Inc.) Hartford,  Conn. 

Manufacturers'  Association  of  Lancaster Lancaster,  Pa. 

Manufacturers'  Association  of  Monroe  County 

Manufacturers'  Association  of  New  Jersey 

Manufacturers  Association  of  Washington Seattle,  Wash. 

Manufacturers'  Association  of  Wilmington,  Delaware. 

Manufacturing  Chemists'  Association Cleveland,  Ohio. 

Manufacturers'  Club Philadelphia,  Pa. 

Marinette  Knitting  Mills Marinette,  Wis. 

Markham  Air  Rifle  Co Plymouth,  Mich. 

Maryland  Casualty  Co Baltimore,  Md. 

Master  Rule  Manufacturing  Co.  (Inc.) New  York  City. 

Mayer  China  Co Beaver  Falls,  Va. 

Mayer,  Walter  W Ephrata,  Pa. 

Mayor  of  Johnstown,  N.  Y 

Menasha  Woolen  Ware  Co Menasha,  Wis. 

Merchants'  Publishing  Co Kalamazoo,  Mich. 

Merion  Worsted  Mills West  Conshohocken.  Pa. 

Merrill  Hosiery  Co Hornell,  N.  Y. 

Merrill  Knitting  Co Merrill,  Wis. 

Merrill  Silk  Co Hornell,  N.  Y. 

Merrimac  Chemical  Co Boston,  Mass. 

Merritt  Development  Co Minneapolis,  Minn, 

Metal  Specialties  Co.1 Attleboro,  Mass. 

Meyercord  Co Chicago.  111. 

Michell,  Henry  F.,  Co Philadelphia,  Pa. 

Michigan  Manufacturers'  Association 

Middletown  Chamber  of  Commerce Middletown,  N .  Y. 

Miles,  G Walden,  N.  Y. 

Millark  Electric  Manufacturing  Co St.  Louis,  Mo. 

Miller  Lock  Co Philadelphia,  Pa. 

Millinery  Braid  &  Trimming  Manufacturers'  Associa- 
tion  Philadelphia,  Pa. 

Milling  Cutter  Society New  York  City. 

Milton  Bradley  Co Springfield,  Mass . 

Mississippi  Glass  Co New  York  City. 

Maloney  Electric  Co St.  Louis,  Mo. 

Molybdenum  Corporation  of  America Pittsburgh,  Pa. 

Monroe.  H.  L..f Chicago,  111. 

Moore,  E.  T Fargo,  N.  Dak. 

Moore,  G.  C Westerly,  R.  I. 

Morse,  James  F.,  &  Co Roxbury,  Mass. 

Moss  Lace  Manufacturing  Co Philadelphia,  Pa. 

Mountain  States  Lumber  Dealers'  Association Denver,  Colo. 


30  DIGEST  OF  TARIFF   HEARINGS,   H.  R.   7456. 

Nagle  Steel  Co •. Pottstown,  Pa. 

Narrow  Fabric  Co Reading,  Pa. 

National  Association  of  Employing  Lithographers.  .  .  .Rochester,  N.  Y. 

National  Association  of  Hosiery  &  Underwear  Manu- 
facturers  Philadelphia,  Pa. 

National  Automatic  Tool  Co Richmond,  Va. 

National  Bank  of  Kentucky New  York  City. 

National  Bottle  Manufacturers'  Association Atlantic  City. 

National  Boys'  Blouse  &  Suit  Manufacturers'  Associa- 
tion  New  York  City. 

National  Camp,  Sons  of  America Lebanon,  Pa. 

National  Carbon  Co.  (Inc.) Cleveland,  Ohio:  San  Francis- 
co, Calif. 

National  China  Co Salineville,  Ohio. 

National  Enameling  &  Stamping  Co Milwaukee,  Wis. 

National  Industrial  Council New  York  City. 

National  Knitted  Outerwear  Association New  York  City. 

National  Knitting  Co Milwaukee,  Wis. 

National  Paint,  Oil  &  Varnish  Association  (Inc.) New  York  City. 

National  Razor  Manufacturing  Co Fremont,  Ohio. 

National  Screw  &  Tack  Co Cleveland,  Ohio. 

National  Tool  Co Cleveland,  Ohio. 

National  Twist  Drill  &  Tool  Co Detroit,  Mich. 

Navy  Knitting  Mills  (Inc.) .New  York  City. 

Nebraska  Manufacturers'  Association 

Nelson  Bottling  Works Hornell,  N.  Y. 

Nelson  Glove  Co Gloversville,  N.  Y. 

Nestle's  Food  Co New  York  City. 

New  Bedford  Cotton  Manufacturers'  Association New  Bedford,  Mass. 

New  Departure  Manufacturing  Co Bristol,  Conn. 

New   England   Manufacturing   Jewelers   and    Silver- 
smiths' Association Providence,  R.  I. 

New  Fabric  Cloth  Mills  (Inc. ) Oswego,  N .  Y. 

New-  Hampshire  Manufacturers'  Association 

New  Haven  Clock  Co New  Haven,  Conn. 

New  York  Store Greensburg,  Pa. 

Newark  Wire  Cloth  Co Newark,  X.  J. 

Newcomb,  F.  J.,  Manufacturing  Co New  York  City. 

Niagara  Steel  Finishing  Co.  (Inc.) Niagara  Falls,  N.  Y. 

North  &  Judd  Manufacturing  Co New  Britain,  Conn. 

North  American  Lace  Co Philadelphia,  Pa. 

North  East  Electric  Co Rochester,  N.  Y. 

Notaseme  Hosiery  Co Philadelphia,  Pa. 

Novelty  Cutlery  Co Canton,  Ohio. 

Noyes,  Thomas,  &  Co Charleston,  W.  Va. 

O.  M.  Glove  Corporation. . .  Waterford,  N .  Y. 

O'Connor,  L.  M .- Hornell,  N.  Y. 

Oconto  Mills Oconto,  Wis. 

Ohio  Manufacturers'  Association 

Oklahoma  Employers'  Association 

Oliver  Manufacturing  Co Oakland,  Calif. 

Oneida  Knitting  Co De  Pere,  Wis. 

Onondaga  Pottery  Co Syracuse,  N.  Y. 

Ontario  Knife  Co Frankville,  N.  Y. 

Ornstein.  S.,  &  Sons New  York  City.    • 

Ostrauder,  W.  R.,  &  Co New  York  City. 

Oswald  Lever  Co Philadelphia,  Pa. 

Owen  China  Co Minerva,  Ohio. 

Pacific  Coast  Glass  Works San  Francisco,  Calif. 

Packard  Electric  Co Warren,  Ohio. 

Page  Steel  &  Wire  Co Bridgeport,  Conn. 

Paine,  Sidney  B Boston,  Mass.  • 

Palern,  Mrs.  Bovina Walden,  N.  Y. 

Paragon  Electric  Co Chicago,  111. 

Paramount  Knitting  Co Chicago,  111. 

Parker  Bros Salem,  Mass. 

Parker  Clock  Co...  Meriden,  Conn. 


DIGEST  OF   TARIFF   HEARINGS.    H.   R.    7456.  31 

Parker  Gun Meriden,  Conn. 

Parker,  R.  H Minneapolis,  Minn. 

Parker  Wire  Goods  Co Worcester,  Mass. 

Pass  &  Seymour New  York  City. 

Paterson  Parchment  Paper  Co Passaic,  N.  Y. 

Peck  Motor  Sales  Co.  (Inc.) Hornell,  N.  Y. 

Peck,  Stow  &  Wilcox  Co Cleveland,  Ohio. 

Peerless  Knitting  Co Milwaukee,  Wis. 

Peerless  Tube  Co Bloomfield,  N.  Y. 

Peltz  &  Biderman New  York  City. 

Pelzer  Manufacturing  Co Pelzer,  S.  C. 

Penn  Glass  Sand  Co Lewiston,  Pa. 

Penn  Lawn  Mower  Works Philadelphia.  Pa. 

Penn  Worsted  Co Philadelphia,  Pa. 

Pennsylvania  Manufacturers'  Association 

Peoples'  Bank Johnstown.  N.  Y. 

Pequanoe  Rubber  Co Butler,  N.  Y. 

Perkins.  B.  F..  &  Son  (Inc.) Holyoke.  Mass. 

Pevny.  Emil r Oswego.  N.  Y. 

Philadelphia  Board  of  Trade Philadelphia,  Pa. 

Philadelphia  Tapestry  Mills Philadelphia,  Pa. 

Philippi  Blanket  Mills  (Inc.) Philippi,  W.  Va. 

Phoenix  Chamber  of  Commerce Phoenix,  Ariz. 

Phoenix  Glass  Co Pittsburgh,  Pa. 

Pictorial  Paper  Package  Co Aurora,  111. 

Filer.  S.  H Seattle,  Wash. 

Pioneer  Broom  Co Amsterdam,  N.  Y. 

Piqua  Handle  &  Manufacturing  Co Piqua,  Ohio. 

Pittsburgh  Carbon  Brush  Co Pittsburgh,  Pa. 

Pittsburgh  Chamber  of  Commerce Pittsburgh.  Pa. 

Pittsburgh  Forge  &  Iron  Co Pittsburgh.  Pa. 

Plumb.  Fayette  R.  (Inc.) Philadelphia,  Pa. 

Pond.  A.  L Milwaukee.  Wis. 

Pond.  Ashley Santa  Fe.  X.  Mex. 

Pool.  M.  A Memphis,  Tenn. 

Pope,  Grosser  China  Co Coshocton,  Ohio. 

Potters  Cooperative  Co ,  .East  Liverpool,  Ohio 

Pratt  &  Whitney  Co Hartford,  Conn. 

Prest  Glove  Leather  Tanners'  Association Gloversville,  N.  Y. 

Prest-Yost  Electric  Manufacturing  Co Toledo,  Ohio. 

Priscilla  Worsted  Mills Thornton,  R.  I. 

Progressive  Handkerchief  Manufacturing  Co Passaic,  N.  J. 

Pyroxlin  Plastics  Manufacturers'  Association New  York  City. 

Quackenbrush.  H.  M Herkimer,  N.  Y. 

Quality  Silk  Mills  (Inc.) New  York  City. 

Radclfffe  Bros Derby,  Conn. 

Randall,  H.  D Denver,  Colo. 

Ranson  &  Randolph  Co Toledo.  Ohio. 

Raub.  H.  F..  Silk  Co Bangor,  Pa. 

Read  &  Lovett  Manufacturing  Co New  York  City. 

Reading  Steel  Casting  Co Bridgeport.  Conn. 

Reed-Prentice  Co Worcester,  Mass. 

Rees'.  Hans,  Sons Asheville,  N.  C. 

Reliable  Knitting  Works Milwaukee,  Wis. 

Reliance  Electric  &  Engineering  Co Cleveland.  Ohio. 

Republican  State  Committee Trenton,  X.  J. 

Rhode  Island  Textile  Association Providence,  R.I. 

Rice,  Richard  II West  Lynn.  Mass. 

Rich,  Knitting  Mills  Co 

Richmond  Malleable  Castings  Co Richmond,  Ind. 

Rimmon  Eyelet  Co Seymour.  Conn. 

Ripple,  Wa'rren South  Bend,  Ind. 

Ritchie.  W.  C..  &  Co Chicago,  111. 

Ritter  Dental  Manufacturing  Co.  (Inc.) ' Rochester,  N.  Y. 

Robbins  &  Meyers  Co Springfield.  Ohio. 

Roberts.  R.  R'. Houston,  Tex. 

Robeson  Cutlery  Co Rochester,  N.  Y 


32  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Rochester  Stamping  Co Rochester,  N.  Y. 

Rockford  Electric  Co Rockford,  111. 

Rockford  Mitten  &  Hosiery  Co Rockford,  111. 

Rockwood  Mannfacturing  Co Indianapolis,  Ind. 

Roebling,  J.  A.,  Sons  Co Trenton,  N.  J. 

Rogers,  E Springfield,  Mass. 

Rogers,  John  B Warwick,  N.  Y. 

Rohn  &  Haas  Co Philadelphia,  Pa. 

Rome  Brass  &  Copper  Co Rome,  N.  Y. 

Rome  Wire  Co '. Rome,  N.  Y. 

Roosevelt  Worsted  Mills Philadelphia.  Pa. 

Rose,  C.  W.,  Glove  Co Glovereville,  N.  Y. 

Rose,  Hemingway  Cantrell,  Loughborough Little  Rock,  Ark. 

Rotary  Club  of  New  Britain,  Conn •„ 

Royaf  Knitting  Mills  Co Chicago,  111. 

Royal,  Thos.  M.,  &  Co Bryn  Mawr,  Pa. 

Rubin  Bros.,  Millinery  (Inc.) Brooklyn,  N.  Y. 

Russell,  John,  Cutlery  Co Greenfield,  Mass. 

Rutenber  Electric  Co , .  Marion,  Ind. 

Saco  Lowell  Shops Boston,  Mass. 

St.  Louis  Label  Works St.  Louis,  Mo. 

Salem  China  Co Salem,  Ohio. 

Salts  Textile  Manufacturing  Co New  York  City. 

Sand  Knitting  Mills Chicago,  111. 

Sanford  Mills Boston,  Mass. 

Sanitax  Brush  Co Chicago,  111. 

Sanitary  Potters'  Association Trenton,  N.  J. 

Saxon  China  Co.  and  employees Sebring,  Ohio. 

Schand  &  Roosa  Co Hornell,  N.  Y. 

Schatt  &  Morgan  Cutlery  Co Titusville,  Pa. 

Schlesinger,  Leo,  &  Co New  York  City. 

Schmitt  &  Ault  Paper  Co York,  Pa. 

Schoenhut,  A.,  Co Philadelphia,  Pa. 

Schrader  Cutlery  Co Welden,  N.  Y. 

Schwelmis,  John  M. ,  Sons Germantown,  Pa. 

Sebring,  E.  H.,  China  Co Sebring,  Ohio. 

Sebring  Pottery  Co Sebring,  Ohio. 

Sessions  Clock  Co Forestville,  Conn. 

Sessions,  F.  W. ,  Millinery  Co Utica,  N.  Y. 

Shannon,  Elizabeth Amsterdam,  N.  Y. 

Sharp,  O.  S Minerva,  Ohio. 

Sheboygan  Chair  Co Sheboygan,  Wis. 

Shelton  Tool  &  Machine  Co Derby,  Conn. 

Sherrill,  J.  L.,  &  Co Mayfield,  Ky. 

Sherwin-Williams  Co Cleveland,  Ohio. 

Sherwood  Bros.  Manufacturing  Co.  (Inc.) Canastota,  N.  Y. 

Shoemaker,  A.  Brock Tullytown,  Pa. 

Shreve .  E .  0 San  Francisco,  Calif. 

Sicard,  D.  C Walden,  N.  Y. 

1,  Rotheschild  &  Co Baltimore,  Md. 


Silver  Plate  Cutlery  Co Derby,  Conn. 

Silvernail  Mosher  Co Gloversville,  N.  Y. 

Simmonds  Manufacturing  Co Fitchburg,  Mass. 

Skerrett,  H.  H.,  &  Co Philadelphia,  Pa. 

Skerry,  A.  T.,  &  Co New  York  City. 

Smith  &  Dove  Manufacturing  Co Andover,  Mass. 

Smith,  Lee  S.,  &  Sons  Manufacturing  Co Pittsburgh,  Pa. 

Smith,  Pearl  I Dillon,  Mont. 

Smith,  W.  &T.,Co Genoa,  N.  Y. 

Southern  Extract  Co Knoxville,  Tenn. 

Southern  Ferro  Alloys  Co Chattanooga,  Tenn. 

Southern  Tariff  Association Washington,  D.  C. 

Southwest  General  Electric  Co El  Paso,  Tex. 

Speer  Carbon  Co I St.  Marys,  Pa. 

Spellmire,  W.  B Pittsburgh,  Pa. 

Spencer  Kellogg  &  Sons  (Inc.) Buffalo,  N.  Y. 

Spinke,  H.  C.,  Clay  Co Newport,  Ky. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  33 

Sprague,  G.  T.  S Warwick,  N.  Y. 

Standard  Knitting  Co Cleveland,  Ohio. 

Standard  Plate  Glass  Co Butler,  Pa. 

Standard  Tool  Co Cleveland,  Ohio. 

Standard  Ultramarine  Co Huntington,  W.  Va. 

Standard  Ultramarine  Co.  employees Huntington,  W.  Va. 

Standard  Underground  Cable  Co Pittsburgh,  Pa. 

Star  &  Crescent  Co Philadelphia,  Pa. 

Star  Knitting  Co La  Crosse,  Wis. 

Star  Pin  Co Derby,  Conn. 

Star  Worsted  Co Fitchburg,  Mass. 

State  Valley  Fabric  Co Bangor,  Pa. 

Starbuck,  D.  K Youngstown,  Pa. 

Stead  &  Miller  Co Philadelphia,  Pa. 

Sterling  Engine  Co Buffalo,  N.  Y. 

Stevens  &  Co .- New  York  City. 

Stewart,  Mrs.  L Walden,  N.  Y. 

Still,  Edwin  F -. Goshen,  N.  Y. 

Stiseles,  Ralph Walden,  N.  Y. 

Stoll,  D.  H.,  Co.  (Inc.) Buffalo,  N.  Y. 

Stoppard,  William,  &  Sons Providence,  R.  I. 

Stover,  C.  J Philadelphia,  Pa. 

Strange,  John,  Paper  Co Menasha,  Wis. 

Stratford  Cookson  Co Philadelphia,  Pa. 

Stromberg-Carlson  Telephone  Manufacturing  Co Rochester,  N.  Y. 

Superior  Steel  Corporation Pittsburgh,  Pa. 

Swayne,  J.  B Kennett  Square,  Pa. 

Swiss  Novelty  Embroidery  Co West  New  York 

Symington,  T.  H.,  Co Rochester,  N.  Y. 

Synthetic  Chemical  Manufacturers'  Association New  York  City. 

Syracuse  Twist  Drill  Co Syracuse,  N.  Y. 

Tafnir  Bearing  Co New  Britain,  Conn. 

Tamarack  &  Custer  Consolidated  Mining  Co Wallace,  Idaho. 

Tap  &  Die  Institute New  York  City. 

Taylor,  E .  M Walden,  N .  Y. 

Taylor  Instrument  Co Rochester,  N.  Y. 

Tennessee  Manufacturers'  Association 

Texas  Employers'  Association 

Thompson,  C.  C.,  Pottery  Co East  Liverpool,  Ohio. 

Thompson,  J.  H.,  &  Sons Kennett  Square,  Pa. 

Todd  Protectograph  Co Rochester,  N.  Y. 

Tolwell  Bros.  &  Co ,. Philadelphia,  Pa. 

Torrance  Window  Glass  Co Los  Angeles,  Calif. 

Toy,  H.  K.,  &  Henley  Skate  Co Richmond,  Ind. 

Toy  Manufacturers  of  the  United  States  (Inc.) Atlantic  City. 

Toy  Manufacturers  of  the  United  States  (Inc.) New  York  City. 

Trant  &  Hire  Manufacturing  Co New  Britain,  Conn. 

Travis  Carter  Co Seymour,  Ind. 

Triangle  Conduit  Co 

Trust  Co.  of  Fulton  County,  N.  Y Gloversville,  N.  Y. 

Turner,  John  C.,  Co Dayton,  Ohio. 

Ulster  Knife  Co Ellenville,  N.  Y. 

Umbrella  Manufacturers'  Association New  York  City. 

Ungerer  &  Co New  York  City. 

Union  Electric  Light  &  Power  Co St.  Louis,  Mo. 

Union  Knitting  Mills Schuylkill  Haven,  Pa. 

Union  League  Club Chicago,  111. 

Union  Mills  Paper  Manufacturing  Co New  Hope,  Pa. 

Union  Pin  Co Winsted,  Conn. 

Union  Trust  Co Cleveland,  Ohio. 

Union  Twist  Drill  Co Athol,  Mass.  . 

United  Associated  Industries 

United  Chemical  Works Corona,  Calif. 

United  Light  &  Railway  Co Grand  Rapids,  Mich. 

United  Manufacturing  Co New  York  City. 

United  Potters'  Association Salineville,  Ohio. 

United  States  Ball  Bearing  Manufacturing  Co Chicago,  111. 


34  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

United  States  Glass  Co Pittsburgh,  Pa. 

United  States  Lace  Curtain  Mills New  York  City. 

United  States  National  Bank Portland,  Oreg. 

United  States  Potters'  Association East  Liverpool,  Ohio. 

United  States  Kubber  Co Bristol  R.  I. 

United  Textile  Workers  of  America Philadelphia,  Pa. 

United  Upholstery  Manufacturers'  Association Philadelphia.  Pa. 

Universal  Steel  Co Bridgeville.  Pa. 

Urdach,  W.  M.,  Electric  Manufacturing  Co St.  Louis,  Mo. 

Utica  Cutlery  Co v Utica,  N.  Y. 

Utica  Drop  Forge  &  Tool  Co Utica,  N.  Y. 

Utica  Novelty  &  Mill  Specialty  Co Utica,  N.  Y. 

Utica  Steam  &  Mohawk  Valley  Cotton  Mills Utica.  N.  Y. 

Valley  Forge  Cutlery  Co Newark,  N.  J. 

Valley  Woolen  Mill." Cherry  Valley,  Mass. 

Vanadium-Alloys  Steel  Co 1 Latrobe,  Pa. 

Van  Doren  &  Button  Co Cleveland,  Ohio. 

Van  Doren  Electric  Tool  Co Cleveland.  Ohio. 

Vanity  Fair  Silk  Mills Reading,  Pa. 

Van  Vleet  Glove  Co Gloversville.  N.  Y. 

Victor  Knitting  Mills Milwaukee,  Wis. 

Victory  Glass  Co Jeannette,  Pa. 

Vineland  Flint  Glass  Works Vineland,  N.  J. 

Virginia  Association  for  the  Common  Good 

Vogt.  Walter  J..' Brooklyn,  N.  Y. 

Wagner.  Edward Wheeling,  W.  Va. 

Waitzfelder  Braid  Co Brooklyn,  N.  Y. 

Wakeman.  W.  F New  York  City. 

Walden  Chamber  of  Commerce Walden,  N.  Y. 

Walden  Knife  Co Walden,  N .  Y. 

Wallace  Barnes  Co Bristol,  Conn. 

Wallace,  H.  F Boston,  Mass. 

Waltham  Watch  Co Waltham.  Mass. 

Ward.  H.  C Rochester,  N.  Y. 

Ward-Stilson  Co Anderson,  Ind. 

Ware,  A.  W..  &  Co. . . • New  York  City. 

Warwick  China  Co Wheeling.  W.  Va. 

Warwick  Cooperative  Association Wheeling,  W.  Va. 

Warwick  Knife  Co Warwick,  N.  Y. 

Warwick  Savings  Bank Warwick,  N.  Y. 

Warwick,  Town  of Warwick,  N.  Y. 

Washburn  Wire  Works Providence,  R.  I. 

Washington  Camp  No.  4,  Patriotic  Order  Sons  of  New  Walden,  N.  Y.- 
York State. 

Waterbury  Clock  Co Watertmry,  Conn. 

Waterbury  Steel  Ball  Co 'Waterbury,  Conn. 

Webbing  Manufacturers'  Exchange New  York  City. 

Weber  Knitting  Mills Appleton,  Wis. 

Weed  en  Manufacturing  Co New  Bedford  Mass 

Weeper.  W.  J.,  Co Fonda,  N.  Y. 

Welch.  C.  J Conneaut,  Ohio. 

Welsbach  Co Gloucester,  N.  Y. 

West  End  Thread  Co Boston,  Mass. 

West  Leechburg  Steel  Co Pittsburgh,  Pa. 

West  Virginia  Manufacturers'  Association 

Westfield  Manufacturing  Co Westfield,  Pa. 

Westinghouse  Electric  &  Manufacturing  Co New  York  City. 

Westinghouse  Union  Battery  Co Swissvale,  Pa. 

Westmoreland  Chemical  &  Color  Co Philadelphia,  Pa. 

Weston  Dodson  &  Co.  (Inc.) Bethlehem,  Pa. 

Wheel  &  Wood  Bending  Co Bridgeport,  Conn. 

Wheeling  Steel  Corporation Wheeling,  W.  Va. 

Whitin  Machine  Works WTiitinsville,  Mass.. 

Whiting,  John  L Boston,  Mass. 

Whitman  &  Barnes  Manufacturing  Co Akron,  Ohio. 

Wieruni,  H.  F Valley,  Wash. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  35 

Wilder  Pike  Thermometer  Co Troy,  N.  Y. 

Wileker  Co. ,  Martin New  York  City. 

Wilkinson,  H.  S New  York  City. 

Willamette  Iron  &  Steel  Works Portland,  Oreg. 

Willard,  B New  Orleans,  La. 

Willard  Storage  Battery  Co %. Cleveland,  Ohio. 

Williams,  C.  K.,  &  Co.' . .  .Easton,  Pa. 

Williams  White  Co Moline,  111. 

Wilson  James  E Pittsfield,  Mass. 

Winchester  Repeating  Arms  Co New  Haven,  Conn. 

Winter  Bros.  Co Wrentham,  Mass. 

Wirt,  Charles '. Germantown,  Pa. 

Wirt  &  Knox  Manufacturing  Co Philadelphia,  Pa. 

Wolcott,  V.  A Butte,  Mont. 

Wolf  Doll  Co New  York  City. 

Wolf  Son  Bros.  Umbrella  Co New  York  City. 

Wollensack  Optical  Co Rochester,  N.  Y. 

Wolsten  Holme,  Charles,  Bros.  Co Philadelphia,  Pa. 

Wolstenholme,  Alfred,  Sons  Co Philadelphia,  Pa. 

Wolvering  Paper  Co Otsego,  Mich. 

Wood  &  Hyde  Co Gloversville,  N.  Y. 

Wood  Shovel  &  Tool  Co Piqua,  Ohio. 

Wood  bury,  M.  F ..Hornell,  N.  Y. 

Woodruff  &  Woodruff Greeley,  Colo. 

Woonsocket  Brush  Co Woonsocket,  R.  I. 

Worcester  Lawn  Mower  Co Worcester,  Mass. 

Worth  Steel  Co Clayton,  Del. 

Worumbo  Co New  York  City. 

Wright,  B.  O.,  &  Co New  York  City. 

Wyllie,  H.  R.,  China  Co Huntington,  W.  Va. 

Yale  Novelty  Co Leominster,  Mass. 

Yates,  Eugene Milwaukee,  Wis. 

Yates,  P.  B.,  Machine  Co Beloit,  Wis. 

Yawman  &  Erbe  Manufacturing  Co Rochester,  N.  Y. 

Zimmer,  W.  U.,  &  Sons Gloversville,  N.  Y. 

Zinsser  &  Co Hastings  on  the  Hudson. 

LIST  B. 

Alphabetical  list  of  firms  and  individuals  opposing  the  American  valuation  plan,  uho 
have  submitted  their  views,  by  letters  or  telegrams,  to  the  Senate  Committee  on  Finance '. 

Allen  &  Bayne Kansas  City,  Kans. 

American  Exporters  &  Importers'  Association New  York  City. 

American  Spice  Trade  Association New  York  Citv. 

American  Street  Lighting  Co Baltimore,  Mxf. 

Associated  Importers  of  Food  Products New  York  City. 

Associated  Retailers  of  Sioux  City Sioux  City,  Iowa. 

Associated  Terminals  Co San  Francisco,  Calif. 

Athletic  Knitting  Mills Chicago,  111. 

Ayres,  L.  S.,  &  Co Indianapolis,  Ind. 

Baker  Bowers  Warehouse San  Francisco,  Calif. 

Baker,  H.,  &  Co.  (Inc.) New  York  City. 

Bayersdorfes,  H.,  &  Co Philadelphia,  Pa. 

Beach,  B.  A.  and  L.  F Joliet,  111. 

Beck,  Will  II.,  Co Sioux  City,  Iowa. 

Beehler,  Williams Baltimore,  Md . 

Bemis  Bros.  Bag  Co Boston,  Mass. 

Bell  &  Caldwell New  York  City. 

Bergner,  R.  A.,  &  Co Peoria,  111. 

Besore  Dry  Goods  Co.  (Inc.) Waynesboro,  Pa. 

Block&  KuhlCo Peoria,  111. 

Blum,  Emil,  Co San  Antonio,  Tex. 

Bon  Marche Seattle,  Wash. 

Boston  See  Goods  Co Fort  Smith,  Okla. 

Boston  Store Cairo,  111. 

Branch,  G.  B.,  &  Co Coldwater,  Mich. 


36  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Brandies,  G.  L.,  &  Sons Omaha,  Nebr. 

Brown,  Charles,  &  Sons San  Francisco,  Calif. 

Brown  &  Sharpe  Manufacturing  Co Providence,  R.  I. 

Caille  Perfection  Motor  Co Detroit,  Mich. 

Cain  Sloan  Co Nashville,  Tenn. 

California  Packing  Corporation * San  Francisco,  Calif. 

Campbell,  Charles  H Detroit,  Mich. 

Campbell,  P.  D Pittsburgh,  Pa. 

Canton,  W.  E.,  Co Detroit,  Mich. 

Central  Dry  Plate  Co St.  Louis,  Mo. 

Chambon.  F.  S McDonald,  Pa. 

Chester,  Jacob  N New  York  City. 

Chicago  Association  of  Commerce Chicago,  111. 

Christensen,  W.  T Seattle,  Wash. 

Cities  Illuminating  Co.  (Inc.) New  York  City. 

Claflin,  Geo.  L.,  Co Providence,  R.  I. 

Claflins  (Inc.) New  York  City. 

Cleveland  Chamber  of  Commerce Cleveland,  Ohio. 

Colgate  &  Co ". New  York  City. 

Consumers'  Committee  Opposed  to  American  Valua- 
tion  New  York  City. 

Continental  Pipe  Manufacturing  Co Seattle,  Wash. 

Cooley,  R.  C Pittsfield,  Mass. 

Crowley  Bros Detroit,  Mich. 

Crowley,  C.  H New  York  City. 

Crowley,  Milner  &  Co Detroit,  Mich. 

Daigger,  A. ,  &  Co Chicago,  111. 

Dannemora  Steels  Co New  York  City. 

Davidson  Bros Sioux  City,  Iowa. 

Davis,  D.  L.,  &  Co Ashtabula,  Ohio. 

Davis,  J.  B.  F.,  &  Son San  Francisco,  Calif. 

Denver  Dry  Goods  Co Denver,  Colo. 

Derenthal,  H.  A New  Rochelle,  X.  Y. 

Dickerson  &  Co Detroit,  Mich. 

Dill  Coppage  (Inc.) San  Francisco,  Calif. 

Dinkelspiel,  L.,  &  Co San  Francisco,  Calif. 

Dixie  Furniture  Co San  Antonio,  Tex. 

Dollar,  Robert,  Co San  Francisco,  Calif. 

Doyle,  J.  J Latrobe,  Pa. 

Eagle  Furniture  Co San  Antonio,  Tex. 

Ebeling  &  Reuss Philadelphia,  Pa. 

Edgerly,  J.  W.,  &  Co Ottumwa,  Iowa. 

Edwin  Harrox  (Inc. ) New  York  City. 

Ely,  Charles  S Millville,  Pa. 

Emporium,  The San  Francisco,  Calif. 

Exporters  &  Importers'  Club Detroit,  Mich. 

Fair  Tariff  League New  York  City. 

Federal  Tool  &  Alloy  Steel  Corporation New  York  City. 

Felt  &  Farraut  Manufacturing  Co Chicago,  111. 

Ferry,  D.  W.,  &  Co Detroit,  Mich. 

Field  Co.,  L.  H Jackson,  Mich. 

Fisher,  Bruce  &  Co Philadelphia,  Pa. 

Franco-American  Board  of  Commerce  &  Industry New  York  City. 

Frank  Bros ' San  Antonio,  Tex. 

Fraser  Dry  Goods  Co Brockton,  Mass. 

Fraser  Patterson  Co Seattle,  Wash. 

Frederick  &  Nelson Seattle,  Wash. 

Fredonia  Seed  Co Fredonia,  N.  Y. 

Friedlander,  Will  W Chicago,  111. 

Fuleihan  Bros New  York  City. 

Gable,  William  F.,  Co Altoona,  Pa. 

Garfield  Trading  Co Garfield,  Wash. 

Gasser  &  Chase Pocatello,  Fla. 

Gates,  T.  B.  M New  York  City. 

Gaut,  T.  L Pensacola,  Fla. 

General  Steamship  Corporation San  Francisco,  Calif. 

Gillespie  Bros.  (Inc.) '. Pittsburgh,  Pa. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  37 

Gillette  Safety  Razor  Co Boston,  Mass. 

Goebel,  J.,  &  Co New  York  City. 

Graham,  J.  S.  (Inc.) Seattle,  Wash." 

Grey,  Geo.,  &  Co Detroit,  Mich. 

Griffin  Cutlery  Works New  York  City. 

Grinnell  Bros Detroit,  Mich. 

Grump,  S.  &  G.  Co San  Francisco,  Calif. 

Guarantee  Furniture  Co San  Antonio,  Tex . 

Hager  &  Bros Lancaster,  Pa. 

Halle  Bros.  Co Cleveland,  Ohio. 

Halliburton,  Albert,  Co Tulsa,  Okla. 

Hammer  &  Co San  Francisco,  Calif. 

Hartz,  C.  F.,  Co Detroit,  Mich. 

Haslett  Warehouse  Co San  Francisco,  Calif. 

Hedet  Co Baltimore,  Md. 

Henckels,  J.  A New  York  City. 

Hermance,  Nicholas New  York  City. 

Heyman,  Marcus  A New  York  City. 

Hill ,  Harold  Newlin Philadelphia,  "Pa. 

Hind  Rolphy  &  Co San  Francisco,  Calif. 

Hobbs,  Taft"&  Co Boston,  Mass. 

Hobson,  Hauajhton  &  Co Si.  George,  N.  Y. 

Hochschild,  Kohn  &  Co.  (Inc.) Baltimore,  Md. 

Hopkins,  James  R St.  Joseph,  Mo. 

Hudson,  J.  L.,  and  Co : Detroit,  Mich. 

Hull  Bros.  Umbrella  Co Toledo,  Ohio. 

Hupp  Motor  Car  Corporation Detroit,  Mich. 

Ingram,  Fred  F.,  Co Detroit,  Mich. 

Jahraus-Braun  Co Buffalo,  N.  Y. 

Jandrey,  E.  E.,  Co Neenah,  Wis. 

Johnson  &  Faulkner New  York  City. 

Jones,  B.  M.,  &  Co.  (Inc.) New  York  City. 

Jones,  S.  L.,  &  Co San  Francisco,  Calif. 

Jordan  Marsh  Co ; Boston,  Mass. 

Joske  Bros.  Co San  Antonio,  Tex. 

Katy  Furniture  Co San  Antonio,  Tex. 

Kemble,  C.,  &  Son Tidioute,  Pa. 

Kern  Commercial  Co New  York  City. 

King  Furniture  Co...- San  Antonio,  Tex. 

Kirk,  James  &  Co Chicago,  111. 

Klass,  Max,  Corporation New  York  City. 

Klein,  Sol Chicago,  111. 

Kreiser,  James  R.  (Inc.) New  York  City. 

Kresge,  S.  S.,  Co. Detroit,  Mich." 

Kroiik,  A.,  &  Co Detroit,  Mich. 

Lambert,  William  J Washington,  D.  C. 

Leatherbury,  Rebote  &  Co Onancock,  Va. 

Lincoln  Knitting  Co Merrill,  Wis. 

Lining  Merchants'  Association  of  America New  York  City. 

Lugg,  A.  W.,  &  Co Knoxville,  Pa. 

Mac  Williams  Department  Store Wilkes-Barre,  Pa. 

McAllister  &  Co San  Francisco,  Calif. 

McAllister,  W.  M.,  Co Syracuse,  N.  Y. 

McCormick  &  Co Baltimore,  Md. 

Maison  Blanche  Co New  Orleans,  La. 

Mandel,  Loeb  &  Yankamer New  York  City. 

Mandrill,  G.  W. ,  &  Co GloversviHe,  N.  Y. 

Mangin,  I.,  &  Co San  Francisco,  Calif. 

Manne  &  Weill New  York  City. 

Marshall  Field  &  Co Chicago,  111. 

Martin,  T.  S.,  &  Co Sioux  City,  Iowa. 

Matson  Navigation  Co San  Francisco,  Calif. 

Merchants'  Dinner  Club Battle  Creek,  Mich. 

Merchants'  Exchange Seattle,  Wash. 

Merchants  &  Manufacturers'  Association Baltimore,  Md. 

Mills  Dry  Goods  Co Lansing,  Mich. 

Moore  Clothing  Co Sioux  City,  Iowa. 

77134—22 4 


38  DIGEST  OF   TARIFF   HEARINGS,,   H.  R.    7456. 

Murphy,  O.  E Washington,  Pa. 

Nathan,  M.,  &  Bros.  (Inc.) Johnstown,  Pa. 

National  Retail  Dry  Goods  Association New  York  City. 

Neuberger  &  Co New  York  City. 

Newcomb  Endicott  Co Detroit,  Mich. 

Newhall,  H.  M.,  &  Co San  Francisco,  Calif 

New  York  Tribune New  York  City. 

Northrup  Glove  Manufacturing  Co Johnstown,  N.  Y. 

Norwegian  American  Cha'mber  of  Commerce. New  York  City. 

O'Connor  Harrison  &  Co San  Francisco,  Calif. 

O'Connor,  Moffatt  &  Co San  Francisco,  Calif. 

Oriental  Trading  Co Winona,  Minn. 

Osborne,  H.  F.,  Co Detroit,  Mich. 

Palace  Hardware  House , Erie,  Pa. 

Park  Davis  &  Co Detroit,  Mich. 

Parrott  &  Co San  Francisco,  Calif. 

Peabody,  Henry  W.,  &  Co New  York  City. 

Pellettic  Stores Topeka,  Kans. 

Pennock,  Edward Philadelphia,  Pa. 

Penny,  J.  0.,  Co Crookston,  Minn. 

Penny,  J.  C. ,  Co Phoenix,  Ariz. 

Peoria  Merchants'  Association Peoria,  111. 

Philadelphia  Drug  Exchange .Philadelphia,  Pa. 

Pincus,  B.  F.,  &  Co Philadelphia,  Pa. 

Pitcairn,  William  S.,  Corporation New  York  City. 

Poldi  Steel  Corporation  of  America New  York  City. 

Prager  Co New  York  City. 

Prange,  H.  C.,  &  Co Sheboygan,  Wis. 

Putman,  A.  E.,  Co Washington,  Iowa. 

Rafter,  John  R New  York  City. 

Ranshoffs San  Francisco,  Calif. 

Retail  Merchants'  Association San  Francisco,  Calif. 

Retail  Merchants'  Bureau Denver,  Colo. 

Rhodes  Co Seattle,  Wash. 

Regtel,  W.  H.,  Sons  Co Ogden,  Utah. 

Rogers,  Edwin  A.,  &  Co Boston,  Mass. 

Rudd,  Paul  E Milwaukee,  Wis. 

St.  Louis  Chamber  of  Commerce St.  Louis,  Mo. 

Schollenberger,  T.  M Chicago,  111. 

Schmidt,  A.  A New  Rochelle,  N.  Y. 

Seattle  Chamber  of  Commerce Seattle,  Wash. 

Selchow  &  Righter  Co ' New  York  City. 

Sherman  &  Sons  Co New  York  City. 

Sherwood,  Geo.  H.,  &  Sons Philadelphia,  Pa. 

Slesinger,  L.,  &  Sons Baltimore,  Md. 

Small,  William,  &  Co Leavenworth,  Kans. 

Spice  Grinders'  Section Boston,  Mass. 

Sterchie  Furniture  Co San  Antonio,  Tex. 

Stern,  L.  A New  York  City. 

Stowen,  G.  A.,  Furniture  Co San  Antonio,  Tex. 

Strauss,  Levi  &  Co San  Francisco,  Calif. 

Sullivan,  Sullivan  and  Theo  J.  Roche San  Francisco,  Calif. 

Taylor,  Wm.,  Sons  &  Co Cleveland,  Ohio. 

Teichert,  Ralph  H Passaic,  N.  J. 

Texas  Retail  Dry  Goods  Association Dallas,  Tex. 

Texas  Sales  Co San  Antonio,  Tex. 

Thanhauser,  S Philadelphia,  Pa. 

Three  Rivers  Exchange  Club Three  Rivers,  Mich. 

Tilden-Thurber  Corporation Providence,  R.  I. 

Tophen  Co New  York  City. 

Tottle,  J.  W. ,  Five  and  Ten  Cent  Stores Baltimore,  Md. 

linger  &  Co New  York  City. 

Union  Ribbon  &  Carbon  Co Philadelphia,  Pa. 

United  Laundry  (Inc.) New  Orleans,  La. 

Vasquez,  J.  A.,  &  Co Habana,  Cuba. 

Wainwright,  H.  R Pittsburgh,  Pa. 

Warren  Ax  &  Tool  Co Warren,  Pa. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  39 

Washer  Bros.  Co San  Antonio,  Tex. 

Watt  &  Shand Lancaster,  Pa. 

Weill,  Raphael  &  Co San  Francisco,  Calif. 

Wells,  J.  B.,  &  Sons  Co Utica,  N.  Y. 

Welsbach  Street  Lighting  Co.  of  America Philadelphia,  Pa. 

Werner,  Chas.  H.,  &  Sons Detroit,  Mich. 

Weslow,  A Anderson,  Ind. 

Wessel,  Henry,  Co Baltimore,  Md. 

Western  Furniture  Co San  Antonio,  Tex. 

Western  Washington  Wholesale  Grocers'  Association.  .Seattle,  Wash. 

Whitney,  Arthur Newark,  N.  J. 

Whittaker,  Clarke New  York  City. 

Williams,  A.,  Co Reading,   Pa. 

Wohl ,  Smith  &  Co New  York  City. 

Wolff,  Marx.,  Co San  Antonio,  Tex. 

Wolfson,  Saul,  Dry  Goods  Co San  Antonio,  Tex. 

Woodcock,  Henry New  York  City. 

William  Wright  Co Detroit,  Mich. 

Wyckoff ,  A.  B , Stroudsburg,  Pa. 

Younkey  Bros.  (Inc.) Des  Moines,  Iowa. 


SCHEDULE    1.— CHEMICALS,    OILS,   AND   PAINTS. 

ACIDS  AND  ACID  ANHYDRIDES. 
PARAGRAPH  1. — ACETIC  ACID. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  V.  G.  Bartram,  representing  the  Shawinigan  Products  Co.  and  the  New 
York  Products  Corporation,  New  York  City. 

Hearings:  Pages  801-809. 

Rates  suggested. — Acetic  acid  to  be  placed  on  the  free  list. 

Remarks. — The  proposed  duty  of  2  cents  per  pound  on  acetic  acid 
would  exclude  Canadian  competition.  Acetic  acid  is  produced  by 
this  Canadian  company  synthetically  and  is  obtained  in  the  first 
stages  100  per  cent  pure.  This  pure  acid  is  especially  adapted  for 
the  manufacture  of  acetic  anhydride  and  acetone  and  other  pharma- 
ceutical chemicals.  There  are  no  producers  of  synthetic  acetic  acid 
in  the  United  States. 

PARAGRAPH  1. — ARSENIC  ACID,  ARSENIOUS  ACID  OR  WHITE  ARSENIC. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

Tyson  Bros.  (Inc.),  Flora  Dale,  Pa.     (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — The  brief  is  a  protest  against  the  proposed  duty 
of  25  per  cent  on  white  arsenic  and  arsenic  acid. 

Remarks. — If  the  duty  proposed  in  H.  R.  7456  goes  into  effect,  fruit 
and  vegetable  growers  will  be  compelled  to  pay  high  prices  for  arse- 
nate  of  lead  and  other  arsenical  spray  materials.  Arsenic  is  produced 
as  a  by-product  from  copper  smelters,  and  producers  are  trying  to 
hold  the  price  up  to  9  to  10  cents  per  pound,  when  they  should  be  will- 
ing to  sell  at  3  or  4  cents  per  pound. 

PARAGRAPHS   1,  46,  54,  AND   1604. CITRIC  ACID,  CITRATE  OP  LIME,  LEMON 

AND  ORANGE  OILS,  LEMON,  LIME,  AND  SOUR  ORANGE  JUICES. 

WITNESSES,    AND    INTERESTS    REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  G.  Harold  Powell,  representing  the  California  Citrus  League,  also  the 
California  Fruit  Growers'  Exchange,  the  Exchange  By-Products  Co.,  and 
the  United  Chemical  Co.,  Los  Angeles,  Calif. 

Mr.  George  M.  Hamilton,  representing  the  Upland  Lemon  Growers'  Asso- 
ciation, Mountain  View  Fruit  Association,  of  Upland,  and  the  College 
Heights  Orange  and  Lemon  Association  of  Claremont,  Calif. 

Hearings :  Pages  813-822. 

Witness:  Mr.  G.  H.  Powell,  representing  the  California  Citrus 
League  and  others. 

40 


DIGEST  OF   TAEIFF   HEARINGS,   H.   E.   7456.  41 

Costs  and  selling  prices. — The  American  and  the  foreign  costs  of 
production  on  citrate  of  lime  are  20.2  cents  and  5.1  cents,  respectively. 
On  citric  acid  the  labor  cost  in  the  United  States  and  Italy  is  35.6 
cents  and  8.9  cents ;  on  oil  of  lemon,  44  cents  per  pound  and  11  cents, 
respectively.  The  American  wage  scale  is  four  times  that  of  Italy. 

Rates  suggested. — Twenty  cents  per  pound  on  citric  acid ;  12  cents 
per  pound  on  citrate  of  lime ;  40  per  cent  ad  valorem  on  lemon  and 
orange  oil.  By  the  desired  removal  of  citrus  juices  from  the  free 
list  they  would*  automatically  come  under  paragraph  806,  which  pro- 
vides for  a  duty  of  70  cents  per  gallon  on  fruit  juices,  n.  s.  p.  f. 
This  would  terminate  the  importation  of  concentrated  juices,  in 
which  form  citric  acid  would  enter  free. 

Hearings :  Pages  822-835. 

Witness:  Mr.  G.  N.  Hamilton,  representing  the  Upland  Lemon 
Growers'  Association  and  others. 

Costs  and  selling  prices. — Details  on  growing  and  manufacturing 
costs  were  given,  the  differential  in  favor  of  Italy  being  85.2  cents 
per  pound  on  citric  acid,  50.1  cents  per  pound  on  citrate  of  lime,  and 
91  cents  per  pound  on  lemon  oil.  The  United  States  wage  scale  is 
four  times  that  of  Italy.  The  California  Citrus  League  reports  that 
the  excess  labor  cost  in  the  United  States  oyer  that  of  Italy  is  known 
to  be  26.7  cents  per  pound  of  citric  acid  produced,  15.1  cents  per 
pound  of  citrate  of  lime,  and  33  cents  per  pound  of  oil  of  lemon.  In 
1914  lemons  sold  for  $2.20  a  box  laid  down  in  New  York.  At  pres- 
ent California  lemons  can  be  laid  down  in  New  York  at  $4.58*' a  box: 
this  figure  allows  no  profit  or  interest.  Last  week  California  lemons 
sold  for  $3.19  a  box  at  auction,  and  imported  lemons  were  selling  for 
$3.45. 

Size  of  industry. — The  Upland  Lemon  Growers  Association  has  213 
members,  owning  1.300  acres.  Has  erected  a  $200.000  plant  for  pro- 
duction of  by-products,  and  has  about  $125,000,000  invested  in  groves 
and  equipment.  The  association  estimates  that  12,500  men  and  their 
families  depend  on  fruit  growing.  In  1920  the  total  area  of  bearing 
lemon  trees  was  33,059  acres;  during  the  same  year  3,615,000  boxes 
of  lemons  were  shipped  by  California.  About  one-third  of  the  citric 
acid  consumed  in  the  United  States  is  produced  in  the  California 
plants. 

Rates  suggested. — Seventy  cents  per  pound  on  citric  acid ;  40  cents 
per  pound  on  citrate  of  lime ;  50  per  cent  ad  valorem  on  oil  of  lemon ; 
$2.10  per  gallon  on  lemon,  lime,  and  sour  orange  and  dried  lemon 
juices.  On  all  other  products  of  the  lemon,  n.  s.  p.  f.,  70  cents  per 
pound  on  the  citric  content  thereof. 

PARAGRAPH  1. OXALIC  AND  FORMIC  ACIDS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  August  Kochs,  representing  the  Victor  Chemical  Works,  Chicago,  111. 
The  American  Alkali  and  Acid  Co.,  Bradford,  Pa.     (Brief.) 

Hearings:  Pages  797-801. 
Witness:  Mr.  August  Kochs. 

Costs  and  selling  prices. — Average  wage  in  domestic  factory.  55 
cents ;  minimum,  37|  cents  per  hour.  In  October,  1919,  the  company's 


42  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

productive  cost  of  oxalic  was  24  cents  per  pound,  the  lowest  up  to 
that  time.  Then  importations  resulted  in  a  cut  of  market  price  to 
15  cents  per  pound.  In  June  the  plant  accomplished  a  cost  of  17  cents 
per  pound — made  up  of  direct  labor,  6.4  cents  per  pound ;  raw  mate- 
rials, 7  cents;  factory  operation,  1.1  cents;  transportation,  warehous- 
ing, administration,  2.5  cents  per  pound.  It  costs  18.28  cents  per 
pound  to  make  formic  acid.  German  labor  costs  one-tenth  of  this, 
with  wages  of  40  marks  per  day.  On  July  16,  1921,  German  reports 
quote  oxalic  acid  at  13f  marks,  or  7.62  cents  per  pound. 

Size  of  industry. — Nine  chemists  and  four  to  five  chemical  engineers 
employed;  the  plant  is  equipped  to  produce  at  the  rate  of  5,000,000 
pounds  per  year:  $600,000  capital  in  oxalic  acid  business. 

Rates  suggested. — Oxalic  acid,  25  per  cent  ad  valorem  plus  5  cents 
per  pound ;  formic  acid,  25  per  cent  ad  valorem  plus  5  cents  per  pound ; 
or  50  per  cent  ad  valorem  or  10  cents  per  pound  specific. 

Witness :  The  American  Alkali  &  Acid  Co.,  Bradford,  Pa.  (Brief ; 
no  appearance  at  hearing.) 

Costs  and  selling  prices. — Costs  to  the  company  were  9.8  cents  in 
1914,  30.9  cents  in  1920,  and  are  estimated  at  16.5  cents  for  1921. 
An  itemized  cost  statement  is  included  in  the  brief.  The  difference 
between  German  and  United  States  labor  costs  is  9  cents  per  pound, 
in  favor  of  Germany.  German  oxalic  acid  is  being  offered  at  11 
cents,  c.  i.  f .  New  York. 

Size  of  industry. — The  company  produces  about  2,000,000  pounds 
a  year  and  can  produce  5,000,000  pounds  if  necessary. 

Rates  suggested. — Oxalic  acid,  25  per  cent  ad  valorem  and  3  cents 
per  pound  if  American  valuation  is  retained;  10  cents  per  pound 
specific  if  American  valuation  is  eliminated. 

PARAGRAPH    1. — TANNIC  ACID. 

WITNESS,  AND  INTERESTS  KEPEESENTED. 

REQUESTING  RECLASSIFICATION  : 

Dr.  Frederick  W.  Russe^  representing  the  Powers-Weightrnan-Rosengarten 

Co.,  Philadelphia,  Pa.,  and  the  Mallinckrodt  Chemical  Works,  St.  Louis, 

Mo. 
Zinsser  &  Co.,  Hastings-on-Hudson,  N.  Y. 

Hearings :  Pages  236-240. 

Witness :  Dr.  Frederick  W.  Eusse. 

Rates  suggested. — That  paragraph  1  be  amended  to  read :  "  Tannic 
acid,  tannin,  and  extracts  or  decoctions  of  nutgalls,  containing  by 
weight  of  tannic  acid  less  than  40  per  cent,  4  cents  per  pound ;  40  per 
cent  or  more  and  less  than  60  per  cent,  10  cents  per  pound ;  and  60 
per  cent  or  more,  20  cents  per  pound." 

Remarks. — The  witness  desires  a  change  in  the  limits  of  the  groups 
specified  for  tannic  acid  because  of  the  difficulty  in  analysis  and  be  • 
cause  U.  S.  P.  tannin,  the  highest  and  most  expensive  grade,  is  likely 
to  fall  in  the  middle  group,  although  intended  to  come  within  the 
higher  (above  80  per  cent)  at  20  cents  per  pound. 

In  an  amending  brief,  dated  January  5,  1922,  Dr.  Eusse  states : 

Rates  suggested. — In  view  of  advices  from  the  United  States  Tariff  Commis- 
sion, that  they  have  given  thorough  consideration  to  the  analysis  of  tannic 


DIGEST  OF  TARIFF   HEARINGS,  H.   R.   7456.  43 

acid,  and  recognize  the  points  raised  in  a  previous  brief,  the  Mallinckrodt  Co. 
now  suggests  the  following  classification  and  rates  of  duty  for  tannic  acid : 

"  Tannic  acid,  tannin,  and  extracts  or  decoctions  of  nutgalls,  containing  by 
weight  of  tannic  acid  less  than  50  per  cent,  6  cents  per  pound;  50  per  cent  or 
more  and  not  medicinal,  15  cents  per  pound ;  50  per  cent  or  more  and  medicinal, 
20  cents  per  pound." 

Witness:  Zinsser  &  Co.,  Hastings-on- Hudson,  N.  Y.     (Brief;  no 
appearance  at  hearings.) 
Rates  suggested. — This  paragraph  to  be  changed  to  read  as  follows : 

Tannic  acid  less  than  40  per  centum,  4  cents  per  pound;  more  than  40  per 
centum  and  less  than  55  per  centum,  10  cents  per  pound ;  and  55  per  centum  and 
over,  20  cents  per  pound. 

Remarks. — This  change  is  desired  because  there  is  no  reliable 
method  for  the  determination  of  tannin,  and  the  percentage  limits 
specified  in  the  bill  would  probably  throw  U.  S.  P.  tannin  in  the 
middle  class,  although  intended  to  fall  within  the  higher  group. 

PARAGRAPHS  1  AND  9. — TARTARIC  ACID,  CREAM  OF  TARTAR,  AND  TAR- 
TRATE  MATERIALS. 

WITNESSES. 

FAVORING  PROPOSED  OK  HIGHER  DUTIES  : 

The  Tartar  Chemical  Works,  New  York  City. 
Charles  Pfizer  &  Co.  (Inc.),  New  York  City. 

Witness:  The  Tartar  Chemical  Works.  (Brief;  no  apearance  at 
hearings.) 

Rates  suggested. — The  duty  on  tartaric  acid  to  be  increased  from 
6  cents  per  pound  to  6  cents  plus  10  per  cent  ad  valorem;  the  duty  on 
cream  of  tartar  (par.  9)  to  be  increased  from  5  cents  per  pound  to  5 
cents  plus  10  per  cent  ad  valorem. 

Witness:  Chas.  Pfizer  &  Co.  (Inc.).  (Brief;  no  appearance  at 
hearings. ) 

Rates  suggested. — Six  cents  per  pound  and  10  per  cent  ad  valorem 
on  tartaric  acid,  and  5  cents  per  pound  and  10  per  cent  ad  valorem 
on  argols,  tartar,  and  wine  lees  containing  more  than  90  per  cent  of 
potassium  bitartrate,  cream  of  tartar,  Eochelle  salts,  or  potassium 
sodium  tartrate. 

Remarks. — Since  H.  R.  7456  was  framed,  competition  from  Ger- 
many has  increased  so  that  the  company's  business  has  been  practi- 
cally cut  in  half. 

PARAGRAPH  2. — ACETALDEHYDE  AND  PARACETALDEHYDE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  Ellwood  B.  Spear,  representing  the  Goodyear  Rubber  Co.,  Akron,  Ohio. 
Mr.  Mathew  Adgate,  representing  the  Naugatuck  Chemical  Co.,  Naugatuck, 
Conn. 

Hearings :  Page  809. 

Witness :  Mr.  E.  B.  Spear,  representing  the  Goodyear  Rubber  Co. 
Rates  suggested. — That  these  products  come  in  duty  free  or  at  a 
very  low  rate. 


44  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Remarks. — If  the  duty  is  made  very  high  it  will  mean  that  witness's 
company  will  have  to  abandon  the  use  of  these  products  in  competi- 
tion with  other  rubber  companies  in  other  substances. 

Hearings:  Pages  810-812. 

Witness :  Mr.  M.  Adgate,  representing  the  Naugatuck  Chemical  Co. 

Rates  suggested. — A  protest  against  high  duties  on  acetaldehyde 
and  paracetaldehyde.  The  present  15  per  cent  ad  valorem  rate  is 
ample,  as  the  entire  foreign  competition  will  be  with  Canada  and  not 
with  Europe. 

PARAGRAPH  2. — ACETALDEHYDE,  PARACETALDEHYDE,  ALDOL,  OR 

ACETALDOL,    AND    ALDEHYDE    AMMONIA. 
WITNESSES,  AND   INTERESTS   REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  L.  H.  Davis,  representing  the  Carbide  &  Carbon-Chemicals  Corporation, 
New  York  City. 

FAVORING  LOWER  DUTIES  : 

Mr.  M.  V.  Bartram,  representing  the  Shawinigan  Products  Co.  and  rht>  New 
York  Products  Corporation. 

Hearings:  Pages  812-813. 

Witness:  Mr.  L.  H.  Davis,  representing  the  Carbide  &  Carbon- 
Chemicals  Corporation. 

Costs  and  selling  prices. — The  cost  of  production  is  not  the  same  in 
the  United  States  and  Canada,  because  of  lower  cost  of  power  in 
Canada ;  the  large-scale  plants  built  under  the  stimulus  of  war  re- 
quirements are  cheaper  to  operate  than  smaller  plants  to  supply  home 
markets:  the  Canadian  plants  were  built  on  war-time  contracts,  with 
provision  for  amortizing  the  entire  capital  cost  in  one  year's  output. 

Size  of  industry. — This  company,  with  its  associated  companies, 
has  been  actively  engaged  in  the  development  of  synthetic  processes 
for  the  commercial  manufacture  of  many  chemical  derivatives  of 
acetylene,  including  all  those  above  given,  since  the  year  1914.  It  has 
produced  and  sold  substantial  quantities  of  such  products  commer- 
cially and  is  prepared  to  engage  more  extensively  in  such  business 
provided  it  receives  protection  in  the  new  tariff  law. 

Hearings:  Pages  801-809. 

Witness :  Mr.  V.  G.  Bartram,  representing  the  Shawinigan  Prod- 
ucts Co.,  etc. 

Rates  suggested. — That  commercial  grades  of  these  products  be 
allowed  to  enter  the  United  States  duty  free. 

Remarks. — These  products  are  not  manufactured  at  the  present 
time  on  a  commercial  scale  in  this  country.  Acetaldehyde  and  para- 
cetaldehyde have  been  developed  as  accelerators  in  the  vulcanization 
of  rubber,  in  the  manufacture  of  synthetic  tanning  extracts,  dyes,, 
synthetic  perfumes,  and  many  other  products.  Aldol  is  being  de- 
veloped for  use  in  the  flotation  process  in  concentrating  copper  ores* 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  45 

PARAGRAPH  4. — BUTYL  ALCOHOL  AND  FUSEL  OIL. 

WITNESSES,  AND  INTERESTS  REPRESENTED.    r 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  H.  B.  Warner,  jr.,  representing  the  Commercial  Solvents  Corporation, 
Washington,  D.  C. 

FAVORING  LOWER  DUTIES  : 

The  Norwich  Chemical  Manufacturing  Co.,  East  Smethport,  Pa.     (Brief.) 

The  Anderson  Chemical  Co.,  Wallington,  X.  J.     (Brief.) 

The  Van  Schaack  Bros.  Chemical  Works,  Chicago,  111.     (Brief.) 

The  National  Wood  Chemical  Association,  Susquehanna,  Pa.     (Brief.) 

Hearings :  Pages  839-843. 

Witness :  Mr.  H.  B.  Warner,  jr. 

Costs  and  selling  prices. — Butyl  alcohol  to-day  can  be  sold  in  this 
country  for  23  cents  a  pound.  The  average  domestic  price  of  fusel 
alcohol  before  the  war  was  21  cents  per  pound.  The  cost  of  freight 
and  packing  on  fusel  alcohol  from  European  markets  to  New  York 
amounts  to  3^  cents  to  4  cents  per  pound.  Imported  fusel  oil  is 
offered  at  17  cents  per  pound.  A  brief  subsequently  filed  by  the  wit- 
ness (pp.  841-843)  includes  a  table  showing  production  cost  for 
June,  1921,  as  16.62  cents  per  pound  of  combined  solvents,  sold  at 
17.12  cents.  Combined  solvents  consist  of  butyl  alcohol  56  per  cent,' 
acetone  32  per  cent,  and  ethyl  alcohol  12  per  cent. 

Size  of  industry. — The  Terre  Haute  plants  of  the  corporation  have 
an  annual  capacity  of  5,000,000  gallons  of  combined  solvents,  only 
3,000.000  gallons  of  which  is  butanol. 

Rates  suggested. — A  duty  of  20  cents  per -pound  on  butanol,  amyl 
alcohol  and  fusel  oil,  as  amyl  alcohol  and  fusel  oil  come  into  direct 
competition  with  butyl  alcohol. 

Witness :  The  Norwich  Chemical  Manufacturing  Co.  (Brief ; 
no  appearance  at  hearings.) 

Rates  suggested. — The  brief  protests  against  the  increase  in  duty 
on  fusel  oil  from  one-fourth  cent  per  pound  (act  of  1913)  to  6  cents 
per  pound  (H.  R.  7456). 

Remarks. — The  company  understands  that  the  proposed  increase 
is  requested  by  the  Commercial  Solvents  Corporation,  manufactur- 
ers of  butyl  alcohol,  a  substitute  for  fusel  oil.  Such  increase  would 
work  an  injury  to  the  users  of  fusel  oil.  It  would  bar  imports  and 
increase  the  market  for  butyl  alcohol,  and  thus  produce  a  greater 
supply  of  acetone,  which  is  marketed  as  a  by-product  of  butyl  al- 
cohol. It  would  be  ruinous  to  the  wood  chemical  industry,  previ- 
ously the  sole  source  of  acetone  produced  from  acetate  of  lime,  one 
of  the  principal  products  of  that  industry.  Eighty  per  cent  of  the 
fusel  oil  consumed  in  the  United  States  is  imported. 

Witness:  The  Anderson  Chemical  Co.  (Brief;  no  appearance 
at  hearings.) 

Rates  suggested. — The  brief  protests  against  the  increase  on  crude 
fusel  oil.  It  is  believed  that  it  would  be  unfair  and  unwise  to  place 
a  duty  on  fusel  oil  in  excess  of  1  cent  per  pound,  which  would  give 
ample  protection  to  the  one  concern  manufacturing  butyl  alcohol. 
Prior  to  the  war,  about  four  times  as  much  fusel  oil  was  imported 
as  was  produced  in  this  country.  It  is  the  only  known  substitute 


46  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

for  butyl  alcohol  and  is  limited  in  its  application.  A  duty  of  6 
Cents  per  pound  would  have  the  effect  of  making  butyl  alcohol  a 
monopoly,  as  patent  restrictions  confine  the  manufacture  of  this 
product  to  a  single  corporation. 

Witness:  The  Van  Schaack  Bros.  Chemical  Works.  (Brief;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — The  firm  is  paying  $1.25  per  gallon  for 
fusel  oil  at  the  present  time.  A  duty  of  6  cents  per  pound  would  add 
42  cents  per  gallon,  a  tremendous  increase  when  added  to  the  present 
cost. 

Rates  suggested. — The  rate  on  fusel  oil  should  remain  at  one-fourth 
cent,  or  should  not  be  increased  beyond  1  cent  per  pound  at  most. 

Remarks. — The  increased  duty  would  scarcely  yield  more  than 
$150,000  a  year.  The  Commercial  Solvents  Corporation,  of  Terre 
Haute,  Ind.,  is  the  only  producer  of  butyl  alcohol:  this  product  is 
used,  in  some  instances,  as  a  substitute  for  fusel  oil.  Inasmuch  as  the 
corporation  has  an  entire  monopoly  on  butyl  alcohol,  the  proposed 
duty  would  favor  the  corporation  to  the  great  disadvantage  of  the 
Van  Schaack  firm. 

Witness :  The  National  Wood  Chemical  Association,  Susquehanna, 
Pa.  (Brief ;  no  appearance  at  hearings.) 

Size  of  industry. — Fusel  oil  is  a  by-product  of  the  manufacture  of 
ethyl  alcohol.  The  domestic  production  from  this  source  has  been  less 
than  20  per  cent  of  the  requirements  of  American  industry. 

Rates  suggested. — The  brief  protests  against  the  proposed  increase 
in  duty  on  fusel  oil. 

Remarks. — The  Commercial  Solvents  Corporation,  of  Terre  Haute, 
Ind.,  purchased  the  plants,  processes,  and  patents  used  by  the  United 
States  and  British  Governments  for  the  manufacture  of  acetone  and 
butyl  alcohol.  Acetone  produced  by  this  process  competes  directly 
with  that  made  from  acetate  of  lime,  a  product  of  the  wood  chemical 
industry.  The  Commercial  Solvents  Corporation  has  requested  a 
duty  of  20  cents  per  gallon,  equivalent  to  140  per  cent  on  the  present 
price  of  crude  fusel  oil.  The  duty  in  the  House  bill  of  6  cents  per 
pound  is  approximately  40  per  cent  of  the  present  value  of  fusel  oil. 
The  proposed  duty  would  increase  the  cost  of  fusel  oil  to  consumers, 
now  dependent  upon  Europe  for  80  per  cent  of  their  requirements, 
would  enhance  the  selling  price  of  butyl  alcohol,  and  enable  the  Com- 
mercial Solvents  Corporation  to  dump  by-product  acetone  on  the 
market  at  less  than  the  cost  of  production  by  wood  distillation. 

PARAGRAPH  5. — AMMONIUM  ICHTHYOLATE. 

WITNESS,  AND  INTEREST  BEPBESENTED. 

FAVORING  PBOPOSED  OB  HIGHEB  DUTIES  : 

Mr.  John  Kuesel,  representing  the  Meadows  Oil  &  Chemical  Co.,  Tenafly. 
N.  J. 

Hearings:  Pages  844-847. 

Costs  and  selling  prices. — The  manufacturing  costs  of  this  medici- 
nal article  exceed  $2.70  per  pound,  while  foreign  synthetics  are  being 
dumped  on  the  market  as  low  as  35  cents  per  pound. 


DIGEST  OF   TARIFF    HEARIXGS,   H.    R.    7456.  47 

Size  of  industry. — Eight  or  nine  men  in  the  plant;  the  company 
has  made  about  10.000  pounds  of  ammonium  ichthyolate  from  fossil- 
iferous  marine  deposits  located  in  Texas. 

Rates  suggested. — A  duty  of  $2  a  pound  as  a  counter  charge  on  any- 
thing sold  as  a  substitute. 

Remarks. — This  product  is  used  as  a  remedy  for  infectious  skin 
diseases  and  in  hair  tonics  and  ointment. 

PARAGRAPH  5. — SUGAR  or  MILK. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Charles  Holman,  representing  the  Associated  Dairymen  of  California. 
(Brief;  no  appearance  at  hearings). 

Costs  and  selling  prices. — During  1920  the  average  cost  of  produc- 
ing sugar  of  milk  in  California  was  20^  cents  per  pound. 

Size  of  industry.— From  March  1,  1920,  to  February  28,  1921,  the 
Milk  Producers'  Association  of  Central  California,  at  Modesto,  pro- 
duced 940.680  pounds  of  sugar  of  milk.  The  cost  of  the  by-products 
plants  which  were  idle  on  account  of  low  selling  prices  is  at  least 
$75,000. 

Rates  suggested. — Four  and  a  half  cents  per  pound. 

Remarks. — Central  Californian  sugar  of  milk  was  sold  at  a  net 
loss  of  $55.35  during  1920,  and  factories  have  been  closed  since  Sep- 
tember, 1921.  Unless  adequate  protection  is  afforded,  there  appears 
to  be  little  hope  for  this  industry  in  the  immediate  future. 

PARAGRAPH  7. — AMMONIUM  SULPHATE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  C.  G.  Atwater,  representing  committee  of  by-products  coke  producers 
and  manufacturers,  New  York  City. 

FAVORING  LOWER  DUTIES  : 

Mr.  R.  F.  Bower,  representing  the  American  Farm  Bureau  Federation. 

Hearings :  Pages  848-855. 

Witness:  Mr.  C.  G.  Atwater,  representing  committee  of  by-prod- 
ucts coke  producers  and  manufacturers. 

Size  of  industry. — The  producing  capacity  in  the  United  States 
more  than  equals  the  home  demand. 

Rates  suggested. — The  rate  of  $12  per  ton  in  the  bill  to  be  retained. 

Remarks. — Submits  (on  page  850)  a  table  of  production  and  con- 
sumption of  nitrogenous  materials  in  Germany,  showing  a  German 
surplus  available  for  export  amounting  to  1,490,000  tons.  A  similar 
table  shows  that  in  1920  production  in  the  United  States  exceeded 
consumption  by  60.000  tons. 

Hearings :  Pages  855-860. 

Witness:  Mr.  R.  F.  Bower,  representing  the  American  Farm  Bu- 
reau Federation. 

Rates  suggested. — That  ammonium  sulphate  be  left  on  the  free  list. 

Remarks. — Ammonium  sulphate  is  one  of  the  two  chief  sources  of 
nitrogen  fertilizer  in  the  United  States;  the  other  is  sodium  nitrate 


48  DIGEST   OF   TARIFF    HEARINGS,   H.  R.    7456. 

from  Chile.  In  the  case  of  the  latter,  the  domestic  producer  is 
protected  by  an  export  duty  of  $11.85  per  ton,  benefiting  the  Chilean 
treasury.  The  witness  points  out  that  the  Barrett  Co.  is  agent  for  all 
large  by-product  coke-oven  industries  in  the  sale  of  ammonium 
sulphate. 

PARAGRAPH  7. — AMMONIUM  NITRATE. 


FAVORING  LOWER  DUTIES: 

The  Hercules  Powder  Co.,  Wilmington,  Del.     (Brief;  no  appearance  at  hear- 
ings.) 

Costs  and  selling  prices. — The  present  prevailing  price  of  ammo- 
nium nitrate  is  6  cents  per  pound;  therefore  the  duty  of  25  per  cent 
ad  valorem  amounts  to  1|  cents  per  pound. 

Rates  suggested. — On  the  basic  rate  of  three-fifths  of  1  cent  per 
pound  on  ammonium  sulphate,  as  provided  in  H.  R.  7456,  the  rate  on 
ammonium  nitrate  in  proportion  to  the  ammonia  content  would  not 
exceed  one-half  cent  per  pound.  It  is  desired  that  this  rate  be  sub- 
stituted for  the  ad  valorem  rate. 

Remarks. — In  time  of  peace  nitrate  of  ammonia  is  used  practi- 
cally only  in  the  manufacture  of  dynamite.  The  proposed  rate 
would  impose  an  excessive  burden  on  the  mining  industry,  without 
^giving  a  corresponding  benefit  to  producers  of  ammonia  gas. 

PARAGRAPH  7. — AMMONIUM  PERCHLORATE. 


FAVORING  LOWER  DUTIES  : 

The  Atlas  Powder  Co.,  Wilmington,  Del.     (Brief;  no  appearance  at  hear- 
ings.) 

Size  of  industry. — The  company  uses  approximately  4.000.000  tons 
of  this  material  yearly.  At  the  present  time  there  are  no  plants  in 
the  country  producing  or  equipped  to  produce  ammonium  perchlo- 
rate. 

Rates  suggested. — Ammonium  perchlorate  to  be  included  in  the- 
free  list. 

Remarks. — A  duty  will  not  give  protection  to  any  manufacturer : 
will  only  increase  cost  of  explosives  to  the  extent  that  the  company 
would  have  to  give  up  the  manufacture  of  the  improved  nonfreezing 
grades.  As  far  as  is  known,  it  is  impossible  to  substitute  any  other 
chemical  for  ammonium  perchlorate  in  this  class  of  explosives- 

PARAGRAPH  7. — LIQUID  ANHYDROUS  AMMONIA. 

WITNESSES. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  National  Ammonia  Co.  (Inc.),  St.  Louis,  Mo.     (Brief.) 

The  Henry  Bower  Chemical  Manufacturing  Co.,  Philadelphia,  Pa-.     (Brief.) 

Witness:  The  National  Ammonia  Co.  (Inc.).  (Brief;  no  appear- 
ance at  hearings.) 

Rates  suggested. — The  duty  on  liquid  anhydrous  ammonia  to  be  in- 
creased from  2^  to  5  cents  per'pound.  Ammonia  sulphate  regulates  the 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.    7456.  49 

price  of  other  ammonium  compounds.  H.  R.  7456  provides  a  rate  of 
three-fifths  of  1  cent  per  pound  on  ammonia  sulphate.  As  about  4.4 
pounds  of  sulphate  are  required  to  produce  1  pound  of  anhydrous  am- 
monia, the  duty  of  three-fifths  of  1  cent  per  pound  on  ammonium  sul- 
phate is  equivalent  to  2.64  cents  per  pound  calculated  on  the  anhydrous 
ammonia  that  it  will  produce.  This  gives  a  differential  of  one- 
fourth  cent  per  pound  against  liquid  anhydrous  ammonia. 

Witness:  The  Henry  Bower  Chemical  Manufacturing  Co. 

(Brief;  no  appearance  at  hearings.) 

Kates  suggested. — A  duty  of  5  cents  per  pound  to  be  placed  on  liquid 
anhydrous  ammonia,  equivalent  to  16  per  cent  ad  valorem,  American 
valuation. 

Remarks. — The  duty  on  liquid  anhydrous  ammonia  is  not  equitable, 
calculated  on  the  duties  that  may  be  levied  on  ammoniacal  liquor 
and  the  duty  proposed  on  ammonium  sulphate,  the  raw  materials 
for  anhydrous  ammonia. 

PARAGRAPH  7. — AMMONIACAL  LIQUOR. 


WITNl 

REQUESTING  RECLASSIFICATION  : 

The  Michigan  Ammonia  Works,  Detroit,  Mich. 
The  National  Ammonia  Co.,  St.  Louis,  Mo. 

The  Granby  Consolidated  Mining,  Smelting  •&  Power  Co.  (Ltd.),  25  Broad 
Street,  New  York  City.     (Briefs;  no  appearance  at  hearings.) 

Rates  suggested. — Ammoniacal  liquor  is  not  mentioned  specifically 
in  the  Fordney  bill.  The  briefs  request  classification  at  a  rate  not 
exceeding  10  per  cent  ad  valorem,  as  now  provided  for  in  the  act 
of  1913. 

Remarks. — This  is  an  important  raw  material  in  the  manufacture 
of  other  ammonium  compounds. 

PARAGRAPH    7. — AMMONIUM    CARBONATE    AND    AMMONIUM    BICAR- 
BONATE. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Michigan  Ammonia  Works,  Detroit,  Mich.     (Brief;  no  appearance  at 
hearings.) 

Costs  and.  selling  prices. — In  a  brief  dated  August  8,  1921,  dealing 
with  ammonium  carbonate,  the  company  notes  the  largely  increased 
importations  from  Europe  at  prices  with  which  the  American  in- 
dustry is  unable  to  compete.  As  a  result,  the  company,  after  having 
materially  reduced  production,  has  now  discontinued  the  manufac- 
ture, hoping  for  better  conditions.  Labor  forms  a  large  item  in  the 
cost  of  production,  a  condition  affording  foreign  competitors  a  great 
advantage. 

Rates  suggested. — A  duty  of  4  cents  per  pound  on  ammonium  car- 
bonate and  of  5  cents  per  pound  if  packed  in  cans,  boxes,  kegs,  or 
containers  other  than  casks  or  barrels.  This  differential  duty  is  called 
for  by  the  amount  of  ammonium  carbonate  reaching  this  country 


50  DIGEST   OF    TARIFF    HEARINGS,   H.  R.   7456. 

from  abroad  in  the  containers  mentioned.  Domestic  purchases  are 
largely  in  packages  most  convenient  for  immediate  consumption. 

Remarks. — This  product  is  mainly  used  by  bakers  in  the  produc- 
tion of  sweet  goods.  Less  than  a  pound  is  required  for  200  pounds 
of  flour,  producing  about  300  pounds  of  such  goods. 

In  a  supplementary  brief,  dated  January  18,  1922,  the  company 
asks  for  the  inclusion  of  ammonium  bicarbonate  with  ammonium  car- 
bonate. Large  quantities'  of  the  bicarbonate  are  now  being  imported 
as  a  substitute  for  the  carbonate,  and  the  interests  of  the  two  are 
practically  identical.  The  same  rates  of  duty  are  therefore  ap- 
plicable and  requested. 

PARAGRAPH  8. — ANTIMONY  OXIDE. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  R.  L.  Hoget,  representing  the  Antimony  Compounds  Co.,  Piscatawav, 
N.  J. 

FAVORING  LOWER  DUTIES  : 

The  True-Tagg  Paint  Co..  Memphis,  Tenn.     (Brief.) 

Hearings:  Pages  860-866. 

Witness:  Mr.  R.  L.  Hoget. 

Costs  and  selling  prices. — American  production  cost  is  8  cents  a 
pound  for  antimony  oxide ;  the  Chinese  about  2.5  cents.  Prewar  cost 
of  production  in  China,  f.  o.  b.  Shanghai,  was  3  cents  to  3^  cents 
per  pound.  Chinese  wages  run  from  5  to  40  cents  per  day,  the  effi- 
ciency of  the  Chinese  12-hour  coolie  being  approximately  35  to  50  per 
cent  of  the  American  laborer,  whose  wages  are  $3  to  $4  for  8  hours' 
work.  Prices  have  varied  from  7.8  and  9  cents  to  25  cents  per 
pound  during  the  war.  Even  in  the  opening  years  of  the  present 
century  the  last-named  price  was  obtained. 

Size  of  industry. — The  prewar  production  of  the  metal  and  the 
oxide  was  about  10,000  tons,  of  which  American  manufacturers  pro- 
duced 2,000  or  2,500  tons. 

Rates  suggested. — A  duty  of  4  cents  per  pound  on  oxide  and  metal. 

Witness:  The  True-Tagg  Paint  Co.  (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — That  "  Timonox,"  a  paint  pigment  composed  of 
antimony  oxide,  be  specially  provided  for  at  1  cent  per  pound.  An 
increase  in  the  rate  of  duty  is  requested  because  the  Italian  Govern- 
ment, since  the  bill  H.  R.  7456  passed  the  House  of  Representatives, 
increased  the  export  duty  on  tartrate  materials  from  lire  2.20  gold 
to  lire  6  gold-  per  100  kilograms.  This  increase  on  raw  materials 
will  add  about  1  cent  per  pound  to  the  finished  product.  During 
the  last  nine  months  large  quantities  of  cream  of  tartar  and  tartaric 
acid  have  been  thrown  on  this  market,  and  American  manufacturers 
have  operated  at  about  40  per  cent  of  production. 

Remarks. — A  process  has  been  perfected  in  England  which  makes 
antimony  oxide  suitable  for  paint  and  varnish  making.  It  does  not 
compete  with  the  ordinary  grades  of  antimony  oxide. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  51 

PARAGRAPH  8. — ANTIMONY  COMPOUNDS. 
WITNESS.  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.   G.   C.   Riddell    (statement  and  brief),   representing  the  Wan   Chang 
Trading  Corporation. 

Hearings :  Pages  867-870. 

Rates  suggested. — Antimony  or  needle  or  liquated  antimony  to 
be  transferred  to  paragraph  376  and  made  dutiable  at  1  cent  per 
pound,  compensatory  with  the  rate  on  the  metal,  which  is  H  cents 
per  pound. 

Remarks. — If  the  provisions  of  H.  R.  7456  were  to  make  liquated 
or  needle  antimony  the  article  of  commerce  instead  of  antimony 
metal  or  antimony  oxide  the  crude  antimony  would  be  shipped  here 
from  China  and  converted  into  metal  or  oxide  in  this  country.  This 
would  cause  a  complete  change  in  the  Chinese  industrial  position  on 
antimony,  as  the  plants  would  have  to  be  rearranged  to  a  basis  of 
producing  crude  instead  of  metal. 

PARAGRAPH  8. — TARTAR  EMETIC  OR  POTASSIUM  AMMONIUM  TARTRATE. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Rohm  &  Haas  Co.,  Philadelphia,  Pa.     (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  minimum  selling  price  found  by  the 
company  is  31  cents  per  pound.  The  proposed  specific  duty  of  5  cents 
per  pound  would  be  lower  than  the  ad  valorem  rate  of  25  per  cent 
now  in  force. 

Rates  suggested. — A  specific  duty  of  15  cents  per  pound  or  an  ad 
valorem  rate  of  50  per  cent. 

BARIUM  CHEMICALS. 

PARAGRAPHS  11  AND  64. BARIUM  DIOXIDE,  NITRATE,  CARBONATE,  AND 

CHLORIDE.  BARYTES,  AND  BLANC  FIXE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  J.  G.  Timolat  (statement  and  brief),  representing  the  Oakland  Chemical 

Co.,  New  York. 
Mr.  Maximilian  Toch,  representing  barium  manufacturers  in   the  United 

States ;  address,  New  York  City. 

The  Chicago  Copper  and  Chemical  Co.,  Chicago,  111.     (Brief.) 
The  J.  H.  R.  Products  Co.,  Willoughby,  Ohio.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

The  American  Face  Brick  Association,  Chicago.  111.     (Brief.) 
John  Bene  &  Sons  (Inc.),  Brooklyn,  N.  Y.     (Brief.) 

Hearings :  Pages  870-874. 

Witness :  Mr.  J.  G.  Timolat. 

Costs  and  selling  prices. — In  1890-1898,  barium  peroxide  cost  12 
to  18  cents  per  pound  to  produce.  In  1898  the  English  imported 
peroxide  sold  at  10  cents  per  pound.  In  1918  the  imported  German 


52  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

barium  sold  at  6|  cents  per  pound.  The  domestic  cost  in  1919  was 
19.7  cents;  labor  being  about  one-third  of  the  total.  In  1919  barium 
carbonate  had  a  cost  value  of  3.16  cents  per  pound :  barium  chloride, 
5.39  cents  per  pound,  and  blanc  fixe.  2.94  cents  per  pound.  Eastern 
and  western  production  and  freight  costs  of  barytes  were  given.  In 
1912-13,  labor  in  the  German  chemical  industry  on  the  Rhine  re- 
ceived 3  marks  (72  cents  at  par  value)  per  10-hour  day.  In  domestic 
plants  $2  was  being  paid  for  9  hours'  work. 

Rates  suggested. — The  duty  on  crude  barytes  should  not  exceed  $2 
per  ton;  on  barium  peroxide',  4  cents  per  pound:  barium  carbonate. 
1  cent  per  pound;  barium  chloride,  l|  cents  per  pound:  blanc  fixe, 

1  cent  per  pound:  barium  sulphide,  i  cent  per  pound:  barium  nitrate, 

2  cents  per  pound. 

Hearings :  Pages  883-885. 

Witness:  Mr.  Maximilian  Toch. 

Costs  and  selling  prices. — Barium  chloride  costs  $106  per  ton  and 
barium  carbonate  $62  to  manufacture  in  the  United  States.  Barium 
chloride  was  selling  in  January,  1921,  at  $70  per  ton,  duty  paid. 
To-day  Germany  offers  it  at  $43  per  ton  of  2,240  pounds,  or  small 
lots  at  $53  per  ton  of  2,000  pounds.  Barium  carbonate  is  now  being 
delivered  from  Germany  in  Xew  York,  free  of  duty,  at  less  than 
$45  per  ton. 

Rates  suggested. — On  barium  carbonate  and  barium  sulphate  (arti- 
ficial), 2  cents  per  pound;  barium  chloride  and  sodium  sulphide  (con- 
centrated), 2|  cents  per  pound;  barium  sulphide,  H  cents  per  pound: 
barium  nitrate,  5  cents  per  pound;  sodium  sulphide  (crystals),  \\ 
cents  per  pound ;  barium  peroxide,  8  cents  per  pound ;  and  witherite, 
1  cent  per  pound.  Other  barium  compounds,  etc.,  25  per  cent  ad 
valorem,  to  be  taken  in  every  case  as  25  per  cent  of  the  American 
value  or.  in  case  of  American  valuation,  there  should  be  a  flat  duty 
of  50  per  cent  on  all  barium  chemicals  and  barium  products.  These 
rates  are  based  on  protection  of  the  American  producer  against  im-' 
ported  German  barium  chemicals. 

Witness:  The  Chicago  Copper  and  Chemical  Co.  (Brief;  no  ap- 
pearance at  hearings.) 

Costs  and  selling  prices. — Foreign  barium  carbonate,  barium 
chloride  and  barium  hydrate  are  offered  at  2  cents  per  pound  below 
the  lowest  price  the  company  could  possibly  make. 

Rates  suggested. — Higher  duties  on  barium  compounds  than  called 
for  in  H.  R.  7456 ;  barium  hydrate  to  be  mentioned  specifically. 

Remarks. — The  company's  plant  has  been  practically  closed  down 
for  the  last  8  months,  not  on  account  of  general  stagnation  of  business, 
but  because  German  products  are  coming  in  at  so  much  below  the 
company's  actual  cost. 

Witness:  The  J.  H.  R.  Products  Co.  (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — The  cost  of  producing  barium  peroxide 
in  the  United  States  in  1919  was  19.7  cents  per  pound;  to-day  the 
cost  is  at  least  16  cents.  The  foreign  product  is  being  offered  at  be- 
tween 8  and  15  cents  per  pound,  c.  i.  f .  New  York. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R,   7456.  53 

Rates  suggested. — An  embargo  until  currency  exchange  becomes 
normal ;  thereafter  a  duty  of  not  less  than  8  cents  per  pound. 

Witness:  The  American  Face  Brick  Association.  (Brief;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — The  prewar  price  of  barium  carbonate 
was  between  $25  and  $30  per  ton,  f.  o.  b.  New  York.  The  price 
f .  o.  b.  Xew  York  has  been  as  high  as  $80  to  $90  per  ton  within  the 
past  two  years,  and  is  now  about  $45  per  ton. 

Rates  suggested. — The  brief  protests  against  a  duty  of  1  cent  per 
pound  on  precipitated  barium  carbonate. 

Remarks. — Barium  carbonate  is  used  by  more  than  one-half  of  the 
face-brick  manufacturers  for  the  purpose  of  keeping  their  brick  free 
from  efflorescence,  or  "whitewash."  As  from  5  to  15  pounds  are 
used  per  1,000  brick,  the  proposed  duty  of  1  cent  per  pound  would 
add  from  4£  to  12f  cents  per  1,000  to  the  cost. 

Hearings:  Page  5121. 

Witness:  John  Bene  &  Sons  (Inc.),  Brooklyn,  New  York. 
(Brief.) 

Costs  and  selling  prices. — A  high-grade  quality  English  barium 
dioxide  can  be  imported  at  present,  duty  paid,  for  16  cents  per 
pound.  A  lower-grade  German  barium  dioxide  can  be  imported  for 
12|  cents  per  pound,  duty  paid.  The  domestic  production  can  be 
sold  (quoting  from  a  letter)  '"  at  a  price  to  meet  the  lowest  reputable 
firm  in  Germany." 

Rates  suggested. — Free. 

Remarks. — Testimony  is  presented  to  show  that  there  is  vir- 
tually a  monopoly  of  barium  dioxide  in  this  country  and  that  if  the 
proposed  duty  of  2^  cents  per  pound  goes  into  effect  advantage  would 
be  taken  to  increase  the  price  accordingly. 

PARAGRAPH  14. — CAFFEINE  AND  TEA  WASTE. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.    John    F.    Quceny,    representing    the  Monsanto    Chemical    Works,    St. 
Louis.  Mo. 

Hearings:  Pages  885-901. 

Size  of  industry. — The  company  is  not  a  war  concern ;  it  has  been 
in  business  over  20  years  and  built  up  quite  a  big  business. 

Rates  suggested. — The  company  asks  that  impure  tea,  tea  waste, 
and  tea  siftings  (raw  materials  for  caffeine)  be  transferred  to  the 
free  list  and  that  the  rate  of  $1.50  per  pound  on  caffeine  be  retained. 
Salts  or  compounds  of  caffeine  should  carry  the  same  rate  of  duty 
as  caffeine  itself,  because  they  contain  about  75  per  cent  of  the  pure 
article. 

Remarks. — The  present  duty — 1  cent  per  pound  on  tea  waste — is 
equivalent  to  45  cents  per  pound  on  the  extractable  caffeine.  Since 
1914  freight  rates  on  tea  have  increased  from  65  cents  to  $1.90  per 
100  pounds,  an  increase  of  $1.25  per  100  pounds.  This  means  an  in- 
crease of  55  cents  per  pound  in  the  cost  of  caffeine  in  the  tea,  so  that 
duty  and  freight  amount  to  $1.30  per  pound  on  the  contained  caffeine. 

77134—22 5 


54  DIGEST  OF  TARIFF  HEARINGS,  H.  R.  7456. 

PARAGRAPH  15. — CALCIUM  CARBIDE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  National  Carbide  Corporation,  Bluefleld,  W.  Va.     (Brief.) 
FAVORING  LOWER  DUTIES  : 

Mr.  Don  B.  McCloud,  representing  the  Gas  Products  Association,  Chicago, 

111. 
Mr.    L.    F.    Loutrel,    representing    the    Shawinigan    Products    Corporation, 

New  York  City. 
Mr.  It.  A.  Witherspoon,  representing  the  Canada  Carbide  Co.,  Montreal, 

Quebec. 
Mr.  C.  C.  Pusey,  representing  the  Alexander  Milburn  Co.,  Baltimore,  Md. 

(Brief.) 

The  Paschall  Oxygen  Co.,  Philadelphia,  Pa.     (Brief.) 
The  United  States  Welding  Co.,  Minneapolis,  Minn.     (Brief.) 
The  Nickel  Fabricating  Co.    (Inc.),   Philipsburg,   Pa.      (Brief.) 
The  Iron  &  Ore  Corporation  of  America,  New  York  City.     (Brief.) 

Hearings :  Pages  934-938. 

Witness :  Mr.  Don  B.  McCloud,  representing  the  Gas  Products 
Association. 

Costs  and  selling  prices. — Domestic  carbide  sold  for  $98  per  ton  in 
January,  1920,  and  for  $112  a  ton  in  September,  1920.  The  German 
product  is  inferior  to  the  American,  yielding  3.7  cubic  feet  per  pound 
on  lump  carbide  as  against  4.5  cubic  feet  per  pound  for  American. 

Rates  suggested.— The  testimony  is  a  protest  against  a  duty  on 
calcium  carbide.  In  conjunction  with  oxygen  the  product  is  used  for 
welding  and  cutting  metals. 

Remarks. — Details  are  given  in  regard  to  the  organization  and  ac- 
tivities of  the  Union  Carbide  Co.,  a  Virginia  corporation,  and  other 
companies.  Statements  under  this  head  have  evoked  written  com- 
ment from  that  company,  summarized  on  page  55.  These  are 
followed  by  an  abstract  of  a  brief  submitted  by  the  National  Carbide 
Corporation. 

Hearings:  Pages  901-904. 

Witness:  Mr.  L.  F.  Loutrel,  representing  the  Shawinigan  Prod- 
ucts Corporation. 

Costs  and  selling  prices. — Best  price  quoted  above  firm,  $65  per  ton, 
f.  o.  b.  Hamburg,  on  what  are  called  large  sizes.  The  crushed 
(smaller)  sizes  command  $5  per  ton  more.  The  United  States  prod- 
uct sells  in  the  neighborhood  of  $100  per  ton,  delivered  at  consuming 
points.  The  witness  claims  that  the  German  product  is  incorrectly 
sized  and  packed  for  marketing  in  the  United  States. 

Size  of  industry. — Witness  estimates  the  domestic  production  at 
90,000  tons,  of  which  80,000  tons  is  produced  by  the  Union  Carbide 
Co.  and  the  remainder  by  four  other  producers  in  the  United  States. 

Comparability. — German  carbide  yields  from  3.3  to  3.9  cubic  feet 
per  pound,  whereas  the  American  and  the  Canadian  products  run 
from  4.5  to  4.6  cubic  feet, 

Rates  suggested. — That  carbide  be  placed  on  the  free  list. 

Remarks. — Warehousing  for  the  proper  distribution  of  carbide  is, 
in  the  witness's  opinion,  a  large  factor.  The  Union  Carbide  Co.  oper- 
ates 170  warehouses,  the  Canadian  Carbide  Co.  38,  and  the  other  four 
United  States  producers  about  30.  The  witness  submitted  several  let- 
ters from  domestic  firms  protesting  against  a  duty  on  carbide  and  a 


DIGEST   OF   TARIFF   HEARINGS,    H.    R.    74,56.  55 

lengthy  brief  containing  references  to  the  Union  Carbide  Co.     See 
below. 

Hearings :  Pages  904-934. 

Witness:  Mr.  E.  A.  Witherspoon,  representing  the  Canada  Car- 
bide Co. 

L  'osts  and  selling  prices. — The  cost  of  carbide  to  the  company  last 
year  on  a  total  of  33,326  tons,  of  which  13,146  tons  went  into  the 
United  States,  was  $81.91  per  ton.  The  price  received,  $83.18  per 
ton,  left  a  profit  of  $1.27  per  ton.  The  power  used  in  the  manufac- 
ture of  carbide  represents  slightly  under  15  per  cent ;  steel  sheets, 
28.75  per  cent ;  coke,  14  per  cent ;  lime  from  the  United  States,  about 
10.5  per  cent,  and  electrodes,  8.67  per  cent  of  the  total  production 
cost. 

8-ize  of  industry. — The  company  has  a  5  per  cent  bond  issue  of 
$2,000,000  and  is  paying  $35,000  of  preferred  stock  interest. 

Remarks. — It  is  claimed  that  the  company's  advantage  on  power 
is  more  than  offset  by  the  freight  haul  to  Quebec  on  raw  materials 
bought  in  the  United  States,  and  the  corresponding  long  haul  on 
carbide  from  Shawinigan  to  United  States  markets. 

Summary  '  of  comment  referred  to  above. — The  testimony  and 
briefs  of  the  Shawinigan  and  allied  interests  are  critically  reviewed 
by  the  Union  Carbide  Co.  in  a  letter  dated  New  York,  November  2, 
1921,  to  the  Senate  Committee  on  Finance,  of  which  the  following  is 
an  abstract: 

Exception  is  taken  to  the  ignoring  of  the  production  of  car- 
bide, in  large  quantities,  in  Norway, -Sweden.  Switzerland,  and 
other  European  countries,  at  extremely  low  costs,  from  abundant 
hydro-electric  power.  Objection  is  also  offered  to  the  allegation 
that  the  German  product  is  much  inferior  to  that  from  American 
and  other  sources  on  the  basis  of  certain  tests  made  in  London 
and  which  are  not  regarded  as  representative  by  the  Union  Car- 
bide Co.  In  support  of  this  attitude  the  company  submits  letters 
and  an  affidavit  showdng  that  German  carbide  is  fully  equal  or 
higher  than  the  American  standard,  both  as  regards  gas  content 
and  proper  sizing  and,  further,  that  analysis  was  made  from 
samples  actually  taken  from  German  carbide  now  being  sold  in 
the  United  States. 

As  regards  the  necessity  of  a  duty  on  this  material — sup- 
ported by  the  company  and  denied  by  the  Shawinigan  inter- 
ests— the  letter  refers  to  recent  importations  of  calcium  carbide. 
It  notes,  also,  definite  quotations  for  such  German  material  at 
a  price  below  the  Canada  Carbide  Co.'s  affirmed  cost  of  pro- 
duction and  precluding  that  company  from  placing  its  product 
on  the  market.  Among  evidence  of  that  tendency  is  a  letter 
from  an  Amsterdam  firm,  dated  September  5,  1921,  acting  as  the 
sole  sale  concessionaires  for  a  number  of  the  principal  Euro- 
pean carbide  plants,  in  which,  after  referring  to  the  advantage 
conferred  by  the  exchange  situation,  .the  statement  is  made : 
"  We  intend  coming  into  your  market." 

Coming  to  the  assertion  that  United  States  production  capac- 
ity is  inadequate  for  the  country's  needs,  it  is  affirmed  that  the 
Union  Carbide  Co.  alone,  without  regard  to  the  capacity  of  the 


56  DIGEST  OF  TARIFF  HEARINGS,  H.  R.   7456. 

other  manufacturers  in  the  United  States,  has  sufficient  facili- 
ties and  power  to  meet  the  entire  demand.  The  company  repels 
the  charge  of  unfairness  to  prospective  customers  and  alludes 
to  statements  of  the  Canada  Co.  that  the  placing  of  a  United 
States  duty  on  importations  would  lead  to  the  establishment  of 
a  plant  on  the  American  side  of  the  line  by  the  Canada  Co.  As 
matters  now  stand,  the  company  asserts  that  more  than  40,000 
tons  of  calcium  carbide,  valued  at  $3,500,000,  were  imported  into 
the  United  States  from  Canada  in  1920.  Part  of  this  was  pro- 
duced in  the  Union  Carbide  Co.'s  subsidiary  plant  on  Canadian 
soil,  erected  in  consequence  of  the  placing  of  calcium  carbide  on 
the  free  list  under  the  Underwood  Act.  The  company's  total 
outlay  on  this  plant  and  on  a  similar  plant  in  Norway  amounts 
to  $10,000,000.  In  the  absence  of  a  protective  duty,  the  company 
will  be  forced  to  rely  on  these  two  plants,  operated  at  extremely 
low  costs,  for  their  entire  supply  to  the  United  States,  thereby 
depriving  thousands  of  American  operatives  of  employment. 
On  the  other  hand,  the  proposed  duty  of  1  cent  per  pound  would 
lead  to  the  utilization  of  the  Norway  plant  for  other  purposes, 
such  as  electric  smelting  of  pig  iron,  the  product  to  be  disposed 
of  in  other  parts  of  the  world. 

The  Union  Carbide  Co.  strongly  favors  the  protective  tariff 
policy  and  states  definitely  that,  if  the  proposed  duty  is  adopted, 
no  increase  in  its  prices  will  follow. 

In  a  supplementary  communication,  dated  December  2.  1921,  the 
Union  Carbide  Co.  directs*  attention  to  a  bulletin  of  the  New  York 
News  Bureau  Association,  dated  December  1,  1921,  in  which  the 
Canada  Carbide  Co.  is  reported  as  having  joined  with  the  British 
Cellulose  Corporation  in  an  application  to  have  carbide  declared  a 
key  industry  under  the  British  safeguarding  of  industries  act,  1921. 
The  effect  of  such  declaration  would  be  to  give  Canada,  as  a  unit  of 
the  British  Empire,  free  entry  of  calcium  carbide  into  Great  Brit- 
ain, as  compared  with  a  duty  of  33^  per  cent  levied  on  that  product 
manufactured  in  the  United  States  and  other  countries.  It  is  also 
noted  that  acetic  acid,  largely  produced  from  calcium  carbide,  is 
already  included  as  a  key-industry  product  under  the  act,  with  cor- 
responding results. 

The  Union  Carbide  Co.  regards  the  efforts  of  Canadian  manufac- 
turers in  this  direction  as  highly  inconsistent  with  their  action  in 
opposing  the  duty  on  calcium  carbide  -proposed  in  the  bill. 


In  a  brief,  dated  August  31,  1921,  the  National  Carbide  Corpora- 
tion, of  Bluefield,  W.  Va.  (pp.  938-947) ,  deals  at  length  with  state- 
ments made  before  the  committee.  The  arguments  are  summarized 
below : 

The  corporation,  although  believing  that  a  higher  duty  of  H 
cents  per  pound  on  calcium  carbide  is  justifiable  under  present 
conditions,  including  foreign-exchange  rates,  is  content  to  ac- 
cept the  1-cent  rate  provided  in  the  House  bill. 

Referring  to  the  opposition  to  the  duty,  the  brief  combats  the 
claim  that  the  duty  would  tend  to  create  a  monopoly  for  the 
Union  Carbide  Co/  The  corporation  believes  that  the  normal  re- 
quirements of  the  United  States  are  overstated  by  the  opponents 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  57 

of  the  duty  at  150.000  tons,  just  as  they  have  underestimated  the 
country's  productive  capacity.  An  annual  demand  of  120.000 
tons  is  much  nearer  the  mark,  while  there  are  American  plants 
capable  of  producing,  in  the  aggregate,  from  123,000  to  168,000 
tons,  of  which  80.000  to  125.000  tons  are  due  to  the  Union  Car- 
bide Co/s  plant. 

The  brief  goes  on  to  state  that  there  is  equally  little  fear  of  a 
monopoly  bein<j  created  in  the  acetylene  gas  field,  again  to  the 
advantage  of  the  Union  Co.  Plants  other  than  those  of  that 
company  would  suffice  to  meet  the  requirements  of  the  acetylene 
manufacturers,  especially  as  the  plants  are  favorably  distributed 
over  the  country.  Such  monopoly  as  the  Union  Co.  possessed  in 
virtue  of  a  product  patent  for  a  new  American  industry  expired 
with  the  patent  in  1912. 

Nor  is  this  all.  Acetylene  gas,  in  which  form  carbide  is  ulti- 
mately used,  has  to  compete  with  every  other  illuminant,  even  in 
the  smaller  communities.  Even  in  its  specialized  use  for  cutting 
and  welding  metals  it  meets  with  the  competition  of  other  modern 
agencies.  It  is  also  contended,  in  the  brief,  that  a  60  per  cent 
advance  in  price,  from  $70  per  ton  in  1913  to  $112  in  1920,  is 
extremely  moderate  in  the  face  of  simultaneous  advances,  rang- 
ing from  100  to  500  per  cent,  in  factors  entering  into  the  produc- 
tion of  carbide. 

The  alleged  impossibility  of  European,  especially  German, 
competition  and  the  concomitant  exclusion  of  revenue  from  the 
proposed  duty  are  met  by  the  statement  that  German  specifi  a- 
tions  stipulate  as  high  a  standard  as  the  American,  while  methods 
of  sizing  and  packing  can  easily  be  conformed  to  United  States 
standards.  The  absence  of  European  carbide  imports  since  1913. 
of  which  much  has  been  made  by  the  opponents  of  a  duty,  is 
accounted  for  by  the  strain  of  war  conditions  upon  inadequate 
plants.  The  change  effected  in  this  respect  is  shown  by  an  in- 
creased capacity  in  German  plants  alone  from  12.000  to  450,000 
metric  tons. 

Reverting  to  prices,  the  fact  that  importations  of  European 
carbide  are  now  being  made  removes  the  question  from  the  aca- 
demic field.  It  is  being  offered  in  NCAV  York  in  small  lots  at  s~s 
and  $80  per  ton — more  than  $20  below  the  price  of  the  American 
product  sold  under  similar  conditions.  For  larger  lots,  $('4. 50 
per  ton  has  recently  been  quoted — a  price  materially  below 
American  factory  costs,  leaving  transportation,  distribution,  and 
selling  expenses  out  of  account.  Even  with  the  proposed  duty  of 
1  cent  per  pound,  the  European  producer  will  still  have  an  ad- 
vantage in  the  entire  seaboard  territory  of  this  country. 

It  will,  in  fact,  be  ruinous  to  the  American  industry  to  have 
this  market  open  to  the  competition  of  low-wage  scales,  aided 
by  the  exchange  situation.    The  proposed  duty,  so  far  from  be- 
ing prohibitive,  may  even  be  inadequate  to  equalize  conditions 
in  these  respects.    Again,  public  policy  would  demand  that  con- 
sideration be  given  the  question  whether  enormous  German  Avar 
plants,  even  if  turned  to  other  uses,  should  be  maintained  in 
potential  effect  by  the  patronage  of  the  American  public. 
The  brief  is  accompanied  by  copies  of  letters  from  the  Iron  &  Ore 
Corporation  of  America,  offering  calcium  carbide  on  the  low  terms 


58  DIGEST   OF   TARIFF    HEARINGS,   H.  R.    7456. 

cited  in  the  brief.  Two  letters  from  foreign  producers  al?o  offer 
carbide  on  low  terms. 

Hearings:  Pages  5125-5135. 

Witness :  Mr.  C.  C.  Pusey,  representing  Alexander  Milburn  Co. 

Costs  and  setting  prices. — The  selling  price  of  calcium  carbide  has 
increased  from  $70  per  ton  in  1913  to  a  maximum  of  $112  in  Sep- 
tember. 1920,  and  is  at  present  between  $80  and  $90. 

Size  of  industry. — The  normal  domestic  consumption  of  calcium 
carbide  is  150,000  tons  annually,  of  which  approximately  10  per  cent 
is  imported  from  Canada  and  practically  negligible  amounts  from 
Europe.  Of  the  above  amounts,  the  Union  Carbide  &  Carbon  Co. 

S  reduces  80,000  tons  in  domestic  plants  and  45,000  tons  in  its  Cana- 
ian  plant.  The  Canadian  Carbide  Co.  exports  from  10,000  to  15,000 
tons  per  year  to  the  United  States,  while  independent  domestic 
manufacturers  produce  about  15,000  tons,  making  up  the  total  con- 
sumption. 

Rates  suggested. — Free  list. 

Remarks. — Testimony  presented  shows  that  the  Union  Carbide  & 
Carbon  Co.  has  a  monopoly  on  the  production  of  calcium  carbide, 
supplying  83-J  per  cent  of  domestic  requirements,  of  which  about  one- 
third  is  imported  from  its  Canadian  plant.  The  effect  of  a  tariff  of  1 
cent  per  pound  would  be  equivalent  to  a  25  per  cent  ad  valorem  duty 
at  the  present  selling  price  of  $80  per  ton. 

Witness:  The  Paschall  Oxygen  Co.  (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — Free  list. 

Remarks. — As  brought  out  in  the  brief  of  the  Alexander  Milburn 
Co..  above,  a  duty  on  carbide  would  give  a  greater  monopoly  than 
ever  to  the  Union  Carbide  &  Carbon  Co.  Similarly,  the  effect  of  Ger- 
man, Norwegian,  and  Canadian  competition  is  discounted.  A  duty 
on  carbine  would  result  in  no  imports,  and  consequently  no  revenue. 

Witness:  The  United  States  Welding  Co.  (Brief:  no  appearance 
at  hearings.) 

Rates  suggested. — Free  list. 

Remarks. — In  support  of  the  company's  request,  Mr.  Mathews  sub- 
mits a  brief  of  the  Shawinigan  Products  Corporation,  favoring  reten- 
tion of  carbide  on  the  free  list.  (See  p.  929.) 

Witness:  The  Nickel  Fabricating  Co.  (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — Free  list. 

Remarks. — Statistics  are  presented  showing  the  monopoly  which 
the  Union  Carbide  &  Carbon  Co.  has  enjoyed  since  1913,  when  car- 
bide became  free  of  duty.  A  duty  would  still  further  increase  this 
monopoly. 

Witness:  The  Iron  &  Ore  Corporation  of  America.  (Brief;  no 
appearance  at  hearings.) 

Rates  suggested. — Free,  or  not  more  than  one-fourth  cent  per 
pound. 

'Remarks. — The  proposed  duty  would  prohibit  all  imports,  with 
consequently  no  revenue;  the  price  of  the  domestic  product  would 
be  raised,  which  would  affect  every  miner  using  carbide,  as  miners 
have  to  pay  for  this  material  themselves. 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.    7456.  59 

PARAGRAPH  16. — MERCURIAL  PREPARATIONS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  A.  G.   Rosengarten,   representing  the  Powers-Weightman-Rosengarten 
Co.,  Philadelphia,  Pa. 

Hearings:  Pages  948-958. 

Costs  and  selling  pieces. — The  present  value  of  mercury  is  about  $45 
per  flask  of  75  pounds.  The  witness  was  unwilling  to  give  details 
of  production  costs,  but  stated  that  25  per  cent  of  them  are  repre- 
sented by  labor. 

Kates  suggested. — Twenty-five  per  cent  ad  valorem  plus  32  cents 
per  pound — an  increase  over  the  rates  specified  in  H.  R.  7456.  This 
is  called  for  by  the  increase  in  duty  on  quicksilver  (par.  383)  from 
7  cents,  as  reported  to  the  House,  to  35  .cents  by  amendment  on  the 
floor.  As  mercurial  preparations  require  an  average  of  90  per  cent 
by  weight  of  quicksilver  the  duty  placed  on  them  should  be  increased 
by  a  compensating  duty  of  90  per  cent  of  the  duty  on  quicksilver, 
equivalent  to  32  cents  per  pound. 

PARAGRAPH  18. — PRECIPITATED  CHALK. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   Carleton   H.   Palmer,   representing   the   Lowell   M.   Palmer   Chemical 
Works,  Brooklyn,  N.  Y. 

Hearings:  Pages  958-969. 

Costs  and  selling  prices. — During  the  first  quarter  of  1919  the  cost 
was  4,12  cents,  while  the  selling  price  was  4.5  cents.  In  1920  the 
production  cost  rose  steadily  from  3.7  cents  to  7.02  cents,  while  the 
selling  price  remained  stationary — 5.38  to  5.5  cents.  A  table  sub- 
mitted shows  increase  in  cost  of  labor,  material,  barrels,  bags,  etc., 
in  1920  as  against  1915.  The  present  price  of  English  imports  varies 
from  2^  to  4  cents  per  pound,  as  against  a  domestic  cost  of  3f  cents 
per  pound. 

Size  of  industry. — It  is  estimated  that  about  5,000,000  pounds  of 
chalk  are  used  annually  in  the  United  States.  The  maximum  ever 
manufactured  by  this  firm  is  about  1,700.000  pounds,  or  about  two- 
fifths  of  the  total  consumption.  The  plant  is  absolutely  shut  down 
to-day  because  of  English  competition. 

Comparability. — The  foreign  product  is  described  as  being  equal 
to  the  domestic. 

Rates  suggested. — That  paragraph  15  be  amended  to  read : 

Chalk,  when  ground,  bolted,  precipitated  naturally  or  artificially,  or  other- 
wise prepared,  whether  in  the  form  of  cubes,  blocks,  sticks  or  disks,  or  other- 
wise, including  tailors',  billiard,  red,  or  French  chalk,  1  cent  per  pound;  pre- 
cipitated chalk,  when  prepared  for  medicinal  use,  li  cents  per  pound ;  manu- 
factures of  chalk,  not  specially  provided  for  in  this  section,  25  per  cent  ad. 
valorem. 

Remarks. — When  the  war  began,  50  per  cent  of  the  consumption 
came  from  Germany ;  to-day,  90  per  cent  of  it  comes  from  England, 
and  there  are  no  German  importations. 


60  DIGEST  OF  TARIFF  HEARINGS,  H.  R.  7456. 

PARAGRAPH  18. — WHITING  AND  PARIS  WHITE. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Herbert  T.  Spoon er,  representing  the  H.  F.  Taintor  Manufacturing  Co., 
New    York    City.      (Brief.) 

Hearings:  Pages  969,  970. 

Costs  and  selling  prices. — The  price  of  imported  whiting  is  now 
$17  to  $18  per  ton  c.  i.  f.  here.  The  price  in  the  United  States  of 
by-product  whiting  and  whiting  made  from  limestone  is  as  low  as 
$13.50  per  ton,  while  that  made  from  imported  chalk  ranges  from 
$22  to  $35  per  ton,  according  to  grade. 

Kates  suggested. — Crude  chalk  (par.  1543)  to  remain  on  the  free 
list.  The  proposed  duty  in  paragraph  18  (15  per  cent  ad  valorem) 
is  not  sufficient  to  protect  the  industry  and  a  duty  of  one-half  cent  per 
pound,  or  its  equivalent  in  ad  valorem,  is  requested. 

Remarks. — Attention  was  called  by  the  witness  to  paragraph  209, 
providing  for  "  French  chalk,  crude  and  unground,"  which  appears 
to  be  in  conflict  with  paragraph  1543,  putting  crude  chalk,  wherever 
it  comes  from,  on  the  free  list.  It  is  urged  in  the  brief  that  paragraph 
209  be  so  amended  as  to  preclude  the  possibility  of  having  any  duty 
placed  on  crude  chalk.  The  brief  states  that  there  are  no  deposits  of 
chalk  in  the  United  States  from  which  satisfactory  whiting  and  Paris 
white  can  be  manufactured. 

PARAGRAPH  18. — CHALK  CRAYONS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

The  American  Crayon  Co.  and  all  American  producers  of  blackboard  chalk. 
( Brief ;  no  appearance  at  hearings. ) 

Costs  and  selling  prices. — The  cheapest  domestic  blackboard  cray- 
ons are  now  selling  for  $23  per  case  of  100  gross,  while  German  cray- 
ons, imported  through  Holland,  are  selling  for  $13.50. 

Size  of  industry. — Capital  employed  directly,  over  $2,000,000 ;  indi- 
rectly, several  million  dollars.  Employees  affected,  directly,  500  to 
800,  all  skilled  labor;  indirectly  (estimated),  1,500  to  2,000.  The  in- 
dustry has  been  built  up  through  four  generations  and,  until  the 
rates  of  exchange  became  dislocated,  had  a  world-wide  trade,  but  is 
now  helpless  to  compete  abroad  and  is  threatened  with  ruin  in  this 
country. 

Rates  suggested. — Chalk  or  whiting  or  Paris  white,  dry  ground, 
bolted,  or  precipitated,  15  per  cent  ad  valorem ;  chalk,  crayon,  billiard 
chalk,  tailors'  chalk,  5  cents  per  gross  and  25  per  cent  ad  valorem; 
blocks,  sticks,  disks,  or  red,  or  otherwise,  and  manufactures  of  chalk 
not  especially  provided  for,  25  per  cent  ad  valorem. 

Remarks. — Two  illustrations  are  submitted,  one  showing  a  box 
of  this  concern's  brand  of  Waltham  crayons,  and  the  other  having 
exactly  the  same  picture  with  the  Dutch  importer's  trade-mark  sub- 
stituted for  that  of  the  American  concern,  showing  the  methods  re- 
sorted to  by  foreign  dealers  to  capture  American  business. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    1456.  61 

PARAGRAPH  24. — CHLORAL  HYDRATE. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.    John    F.    Queeny,    representing   the   Monsanto   Chemical   Works,    St. 
Louis,  Mo. 

Hearings:  Pages  885-901. 

Costs  and  selling  prices. — It  does  not  pay  to  manufacture  at  a  price 
less  than  75  cents  per  pound — its  present  price. 

Size  of  industry. — The  company  employs  25  or  30  persons  in  the 
department,  making  chloral  hydrate.  Consumption  in  this  country 
is  less  than  100,000  pounds  a  year,  but  it  is  a  very  important  medicinal 
chemical. 

Rates  suggested. — A  duty  of  25  per  cent  ad  valorem  and  35  cents 
per  pound. 

PARAGRAPH  26. — COLOR  LAKES. 
WITNESS,  AND  INTEREST  REPRESENTED. 

REQUESTING  RECI.ASSIFICATION  : 

Mr.    A.    S.  Somers,    representing   dry-color    manufacturers ;    address,    New 
York  City. 

Hearings:  Pages  1011-1019. 

Rates  suggested. — That  color  lakes  and  pigments  derived  from 
coal-tar  products  be  taken  out  of  paragraph  26  and  incorporated  in 
a  new  paragraph  to  read : 

Color  lakes  and  all  other  pigments,  whether  dry  or  in  bulk,  made  in  whole 
or  in  part  from  coal-tar  dyes,  leuco  acids,  leuco  bases,  or  any  other  coal-tar 
derivatives,  35  per  cent  ad  valorem  plus  7  cents  per  pound  specific. 

Remarks. — A  separate  paragraph  is  desired  because  of  conflict  in 
the  appraisement  and  assessment  of  duties  on  color  lakes.  The  wit- 
ness emphasizes  the  necessity  of  equalizing  the  rates  on  raw  materials 
and  the  finished  product.  The  wages  paid  in  the  industry  are  ap- 
prpximately  600  per  cent  higher  than  those  being  paid  to  German 
laborers  to-day. 

PARAGRAPH  26. — METOL. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FATORING  PROPOSED  OR  HIGHER  DUTIES  : 

Dr.  Max   Mueller,   representing   the  Rhodia   Chemical  Co. ;   address,   New 
York  City. 

Hearings :  Pages  998-1001. 

Costs  and  selling  prices. — Domestic  costs,  $4  per  pound  as  against 
French,  68  francs  per  kilo,  or  $2.68  per  pound  (franc  value,  8  cents). 
The  imported  article  is  being  produced  at  $2.68  or  less. 

Size  of  industry. — The  domestic  consumption  is  about  75,000 
pounds  annually,  of  which  10,975  pounds  were  produced  in  the 
United  States  in  1918  and  59.024  pounds  in  1919.  The  company  em- 
ploys about  25  operatives. 


62  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

Rates  suggested. — Metol  (monomethyl-paramidophenol  sulphate) 
should  be  mentioned  specifically  at  a  rate  of  30  per  cent  ad  valorem 
plus  $1.50  per  pound. 

Remarks. — Metol  is  a  coal-tar  photographic  chemical.  If  all  the 
metol  consumed  were  manufactured  in  this  country  upward  of  100 
employees  would  be  required. 

PARAGRAPH  26. — HYDROQTJINONE. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Dr.  Max  Mueller,  representing  the  Rhodia  Chemical  Co. ;  address,  New  York 
City. 

Hearings:  Pages  998-1001. 

Costs  and  selling  prices. — Not  including  selling  expenses,  $1.35  per 
pound,  while  the  imported  article  can  be  laid  down  in  this  country 
for  $1.10. 

Size  of  industry. — Domestic  production,  1918,  305,774  pounds;  in 
1919,  272,329  pounds. 

Rates  suggested. — Specific  mention  of  hydroquinone  at  30  per  cent 
ad  valorem  and  50  cents  per  pound.  It  is  a  photographic  chemical. 

PARAGRAPH  30. — GALALITH. 

WITNESS. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

The  United   States  Casoid  Co.,  Alladanite  Chemical  Co.,   Newark,   N.   J. 
(Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — Imported  German  galalith  is  being  sold 
in  this  country  at  the  cost  of  domestic  production. 

Rates  suggested. — Forty  cents  per  pound. 

Remarks. — This  is  an  infant  industry  and  unless  afforded  adequate 
protection  can  not  survive.  Galalith  is  a  casein  product  made  into 
manufactured  articles,  such  as  combs,  buttons,  toilet  articles,  handles, 
etc.,  and  is  a  substitute  for  ivory,  amber,  ebony,  tortoise  shell,  coral, 
horn,  and  ebonite. 

PARAGRAPH  33. — LICORICE  ROOT. 
WITNESS,  .AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  W.  L.  Geddes,  representing  the  Mac-Andrews  &  Forbes  Co.,  New  York 
City. 

Hearings:  Pages  1019-1025. 

Costs  and  sefang  prices. — The  prewar  price  was  about  $50  a  ton; 
at  present  the  price  runs  anywhere  from  $100  to  $300  per  ton. 

Size  of  industi^y. — The  witness's  firm  imports  about  50,000  tons  of 
licorice  root  annually,  retaining  about  two-thirds  for  its  own  use 
and  selling  the  remainder  to  other  manufacturers.  There  are  three 
or  four  companies  making  licorice  extract,  employing  about  700  men. 

Rates  suggested. — Would  place  the  raw  material  on  the  free  list — 
regards  the  House  duty  on  the  finished  product  as  ample. 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.    7456.  63 

PARAGRAPH  36. — DYEWOOD  EXTRACTS. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DVTIKS  : 

Mr.  George  L.  Terrasse,  representing  J.  S.  Young  &  Co.  and  six  other  com- 
panies; address.  Hanover,  Pa. 

Hearings:  Pages  1025-1028. 

Size  of  industry. — The  prewar  production  amounted  to  29,000,000 
pounds,  valued  at  a  little  more  than  $1,300,000.  The  witness  esti- 
mates the  maximum  production,  1915-1917,  at  60,000,000  pounds  an- 
nually. 

Rates  suggested. — An  increase  from  the  11  per  cent  ad  valorem  in 
the  bill  to  about  25  per  cent. 

PARAGRAPH  36. — LOGWOOD  EXTRACTS. 
WITNESSES,  AND  INTKRESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Oakes  Manufacturing  Co..  Long  Island  City,  N.  Y. 

The  Stamford  Dyewood  Co.,  Stamford,  Conn. 

Mr.  C.  B.  Miller,  representing  J.  S.  Young  Co.,  Hanover,  Pa.,  J.  D.  Lewis, 

Providence,  R.  I.,  MacAndrews  &  Forbes  Co.,  Camden,  N.  J.,  the  J.  S. 

Young  Co..  Baltimore,  Md..  Taylor  White  Extracting  Co.,  Camden,  N,  J., 

Imperial  Dyewood  Co.,  Lynchburg,  Va. 

Witness :  The  Oakes  Manufacturing  Co.  (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — Owing  to  the  erection  of  logwood  extract 
plants  in  the  West  Indies,  designed  to  take  advantage  of  cheap  labor 
and  readily  available  raw  material,  imported  material  has  under- 
sold the  domestic  logwood  extract. 

Kates  suggested. — Extracts  of  logwood  (dry  or  crystals),  3  cents 
per  pound;  extracts  of  logwood  (in  what  is  commercially  known  as 
"solid"  or  block  form).  2^  cents  per  pound;  extracts  of  logwood 
(paste  or  liquids  of  51°  Twaddell  or  less),  1-J  cents  per  pound.  This 
classification  recognizes  the  three  commercial  grades  now  sold,  not 
taken  into  consideration  by  the  act  of  1913. 

Witness:  The  Stamford  Dyewood  Co.  (Brief;  no  appearance  aC 
hearings.) 

Costs  and  selling  prices. — Selling  prices  of  July,  1921,-  for  liquid 
logwood  extract,  9  cents ;  solid,  12  cents ;  crystals,  15  cents  per  pound, 
with  small  demand  at  these  prices. 

Size  of  industry. — There  were  four  domestic  manufacturers  prior 
to  the  war.  The  shortage  of  aniline  colors  led  to  the  increased  use 
of  logwood  extract  by  textile  mills,  and  there  are  now  four  addi- 
tional extract  manufacturers. 

Rates  suggested. — Same  as  in  H.  R.  7456. 

Remarks. — The  proposed  rate  is  entirely  adequate  to  afford  pro- 
tection against  foreign  extracts  made  by  cheap  labor  and  to  promote 
a  healthy  state  of  competition. 

Witness:  Mr.  C.  B.  Miller,  representing  six  firms.  (Joint  brief; 
no  appearance  at  hearings.) 

Rate  suggested. — Twenty-five  per  cent  ad  valorem. 


64  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Remarks. — The  arguments  adduced  are  similar  to  those  in  two 
previous  briefs.  As  coal-tar  dyes  are  given  35  per  cent  in  H.  K. 
7456.  it  is  argued  that  a  rate  of  11  per  cent  ad  valorem  for  natural 
dye  extracts  is  a  discrimination  against  the  latter.  These  extracts 
compete  with  coal-tar  dyes  and  are  subject  to  almost  as  intense 
foreign  competition. 

PARAGRAPH  39. — GELATIN. 

WITNESS.  AM)  INTERESTS  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  George  Upton,  representing  the  National  Association  of  Glue  and  Gela- 
tin Manufacturers  and  the  American  Glue  Co.,  manufacturers  of  glu? 
and  gelatin ;  address.  Boston,  Mass. 

FAVORING  LOWER  DUTIES  : 

Mr.  Harold  A.  Sinclair.     (Brief.) 

Hearings :  Pages  1028-1038. 

Witness:  Mr.  George  Upton. 

Costs  and  selling  prices. — The  labor  cost  per  pound  of  gelatin  is 
approximately  four  times  and  the  capital  invested  per  pound  of 
gelatin  about  three  times  that  of  glue.  Based  on  a  gold  standard, 
cost  figures  of  gelatin  in  the  United  States  and  in  Europe  are  ap- 
proximately 4^  to  1.  Labor  in  the  United  States  costs  approxi- 
mately 49  cents  and  in  Germany  7£  cents  per  hour.  European  manu- 
facturing costs  of  high-grade  technical  gelatin  are  10.06  cents,  as 
compared  with  American  at  54.13  cents;  further  details  were  given 
on  these  costs.  The  average  French,  German,  and  Belgian  wage  is 
10.9  cents  per  hour;  United  States,  49  cents.  Selling  prices  are  as 
follows : 

Per  pound. 
Belgian    gelatin $0.  39 

American,    wholesale .  62 

French  gelatin .  32 

American,    wholesale .  51 

Size  of  industry.— About  $15,000,000  invested  capital,  seven  fac- 
tories, 3,000  men.  The  American  Glue  Co.  factory  at  Peabody, 
Mass..  represents  an  investment  of  $2,000.000. 

ftates  suggested. — The  rewording  of  paragraph  39  along  these 
lines: 

Glue,  and  glue  size,  20  per  cent  ad  valorem  and  1£  cents  per  pound ;  manu- 
factures, wholly  or  in  chief  value  of  glue,  casein  glue,  isinglass.  «nd  other  fish 
sounds,  cleaned,  split,  or  otherwise  prepared,  and  agar  agar,  25  per  cent  ad 
valorem. 

Gelatin  conforming  to  United  States  pure-food  laws  specifications,  20  per 
cent  ad  valorem  and  7  cents  per  pound.  Technical  gelatin,  gelatin  in  sheets. 
or  otherwise,  with  physical  qualities  to  show  a  solidified  jelly  in  mixture  of 
1.8  grams  of  gelatin  to  100  cubic  centimeters  of  water  at  42°  Fahrenheit  for  six 
hours,  valued  above  30  cents  per  pound.  20  per  cent  ad  valorem  and  15  cents 
per  pound.  Manufactures,  wholly  or  in  chief  value  of  gelatin,  35  per  cent 
ad  valorem. 

In  an  amended  brief  filed  August  15.  Mr.  Upton  suggested  that 
the  classification  and  rates  previously  submitted  to  the  committee  be 
amended  as  follows: 

Edible  gelatin,  valued  at  less  than  60  cents  per  pound;  20  per  centum  ad 
valorem  and  7  cents  per  pound ;  valued  at  60  cents  or  more  per  pound,  20  per 
centum  ad  valorem  and  15  cents  per  pound. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  65 

Gelatin,  glue,  glue  size,  and  fish  glue  not  specially  provided  for,  valued  at 
less  than  60  cents  per  pound,  23  per  centum  ad  valorem  and  1£  cents  per  pound ; 
valued  at  60  cents  per  pound  and  above,  20  per  centum  ad  valorem  and  15  cents 
per  pound. 

Casein  glue,  agar  agar,  isinglass  and  other  fish  sounds,  cleaned,  split,  or 
otherwise  prepared ;  manufactures,  wholly  or  in  chief  value  of  gelatin,  glue 
or  glue  size,  25  per  centum  ad  valorem. 

The  above  request  is  based  on  American  valuation ;  if  the  Ameri- 
can value  plan  is  not  incorporated  in  the  bill,  it  is  suggested  that 
classification  and  rates  be  as  follows: 

Edible  gelatin,  valued  at  less  than  40  cents  per  pound,  30  per  centum  ad 
valorem  and  7  cents  per  pound;  valued  at  40  cents  or  more  per  pound,  25  per 
centum  ad  valorem  and  15  cents  per  pound. 

Gelatin,  glue,  glue  size,  and  fish  glue  not  specially  provided  for,  valued  at 
less  than  15  cents  per  pound,  25  per  centum  ad  valorem  and  14  cents  per  pound ; 
valued  at  15  cents  per  pound,  and  not  above  40  cents  per  pound,  25  per  centum 
ad  valorem  and  5  cents  per  pound;  valued  at  40  cents  per  pound  and  above, 
25  per  centum  ad  valorem  and  15  cents  per  pound. 

Casein  glue,  agar  agar,  isinglass,  and  other  fish  sounds,  cleaned,  split,  or 
otherwise  prepared ;  manufactures,  wholly  or  in  chief  value  of  gelatin,  glue 
or  glue  size,  25  per  centum  ad  valorem. 

Witness':  Mr.  Harold  A.  Sinclair.  (Brief:  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — It  is  stated  that  coal  is  higher  on  the 
other  side  than  here,  while  labor  is  as  high  here  at  the  present  time. 
Eaw  materials  are  obtainable  in  this  country  at  no  higher  cost  than 
in  Europe.  By  far  the  largest  proportion  of  raw  materials  comes 
from  South  and  Central  America,  and  Europe  secures  supplies  from 
the  same  sources  at  the  same  prices.  Selling  prices  in  the  United 
States  are  higher  than  in  any  other  producing  country. 

Hates  suggested. — The  witness  protests  against  high  rates  on  glue 
and  gelatin. 

Remarks. — Imports  consist  largely  of  goods  of  special  types,  not 
made  in  this  country.  The  effect  of  a  lower  tariff  would  be  to  lead 
to  a  needed  improvement  in  American  manufacturing  methods.  Im- 
ports of  glues  and  gelatins  are  not  over  5  per  cent  of  the  total  United 
States  consumption.  It  is  impossible  to  assess  a  duty  fairly  on  Ameri- 
can valuation,  as  practically  all  imported  gelatin  and  most  imported 
glues  have  no  prototypes  in  goods  of  domestic  production. 

PARAGRAPH  46. — CITRATE  or  LIME. 

(See  also  par.  1,  p.  40.) 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  A.  G.  Rosengarten,  representing  the  Powers-Weightman-Rosengarten  Co., 
Philadelphia;  Charles  Pfizer  &  Co.,  New  York  City. 

'  Hearings :  Pages  948-958. 

Rates  suggested. — A  duty  of  12  cents  per  pound  on  citric  acid  (par. 
1) ,  and  a  duty  of  not  more  than  2  cents  on  citrate  of  lime. 

Remarks. — As  2  pounds  of  citrate  of  lime  are  required  to  produce 
1  pound  of  citric  acid,  a  duty  of  7  cents  per  pound  on  citrate  of  lime 
is  equivalent  to  14  cents  per  pound  on  the  citric-acid  content;  the 
duty  of  12  cents  on  citric  acid,  the  finished  product,  is  consequently 
lower  than  the  duty  on  the  crude  material. 


66  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

"  In  view  of  the  fact  that  the  California  makers  of  citric  acid  are 
at  present  only  able  to  supply  a  small  portion  of  the  total  require- 
ments of  the  United  States,  and  do  not  expect  for  possibly  five  years 
to  reach  a  point  where  they  could  even  provide  half  the  consumption, 
the  situation  resolves  itself  into  the  fact  that  a  large  part  of  the  pro- 
duction heretofore  made  in  the  United  States  by  American  manufac- 
turers will  be  surrendered  to  foreign  producers,  and  that  the  industry 
which  has  been  conducted  for  the  past  50  years  in  the  East  will  be 
extinguished." 

MAGNESIUM  SALTS  AND  MAGXESITE, 
PARAGRAPH  47. EPSOM  SALTS. 


WITNESS.   AND  INTERESTS   REPRESENTED. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  P.  W.  Drackett,  representing  eight  domestic  manufacturers  of  Epsom 
salts ;  address,  Cincinnati,  Ohio. 

Hearings:  Pages  1038-1042. 

Costs  and  selling  prices. — In  1908  German  Epsom  salts  were  im- 
ported at  32  cents  per  100  pounds,  the  cost  of  production  in  the  United 
States  being  90  cents.  .In  1913  Epsom  salts  were  valued  at  45  cents 
per  100  pounds  and  the  American  production  cost  wyas  $1.  In  1914 
the  German  valuation  was  35  cents,  with  United  States  production 
cost  $1.10.  In  1915  the  German  valuation  wras  47  cents,  and  in  the 
early  part  of  that  year  the  American  production  cost  was  $1.75, 
rising  in  the  latter  part  to  $2.25.  I*i  1920  the  United  States  cost  of 
production  was  $2.875  per  100  pounds,  of  Avhich  $1.12  represented 
labor  cost.  German  Epsom  salts  are  now  laid  down  in  New  York  for 
$1  per  100  pounds.  The  average  American  wage  of  $5  per  day  com- 
pares with  56  cents  a  day  in  Germany. 

Size  of  industry. — In  the  United  States  about  300  men  are  engaged 
in  direct  production  and  140  men  in  indirect,  production. 

Rates  suggested. — One-half  cent  per  pound  plus  35  per  cent  ad 
valorem. 

PARAGRAPH   47. MAGNESITE  AND  MAGNESIUM  CHLORIDE. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  John  Anderson,  representing  Innis  Speiden  &  Co.,  New  York  City. 
The  Marine  Decking  &  Supply  Co.,  Philadelphia,  Pa.     (Brief.) 

Hearings :  Pages  1091-1099. 

Witness :  Mr.  John  Anderson. 

Costs  and  selling  prices. — The  average  cost  of  magnesite  to  domes- 
tic miners  is  $25.13  per  ton ;  adding  $3  for  grinding  gives  $28.13  for 
ground  material  at  mine.  The  prewar  price  of  calcined  magnesite 
at  Atlantic  seaboard  was  $25  a  ton,  and  for  magnesium  chloride  $16 
per  ton ;  present  prices  are  $60  and  $45,  respectively  .  A  quotation  on 
Grecian  magnesite  at  $75  per  ton  and  domestic  freight  costs  were  also 
given. 

Rates  suggested. — Protests  duty  on  calcined  magnesite.  It  is 
claimed  that  the  present  rate  of  duty  threatens  the  oxychloride  ce- 
ment industry  in  this  country. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  67 

Witness:  The  Marine  Decking  &  Supply  Co.  (Brief;  no  appear- 
ance at  hearings.) 

Costs  and  selling  prices. — Crude  Grecian  magnesite  is  quoted  at  $18 
per  ton  f.  o.  b.  New  York,  which,  plus  the  proposed  duty  of  $10, 
would  amount  to  $28  per  ton.  As  it  contains  only  45  per  cent  mag- 
nesite. the  cost  of  the  calcined  material  would  be  $62.20  per  ton, 
exclusive  of  fuel  and  grinding  cost.  Californian  calcined  magnesite 
is  delivered  in  New  York  at  $64.  The  proposed  duty  would  enable 
importers  to  charge  about  $78  per  ton. 

Then,  with  calcined  Grecian  magnesite  now  quoted  at  $65  f.  o.  b. 
New  York,  the  proposed  duty  would  have  the  same  economic  effect. 

Imported  magnesium  chloride,  now  quoted  at  $35  f.  o.  b.  New 
York,  if  subjected  to  the  proposed  duty  of  $15.  would  entail  a  price 
$10  per  ton  above  that  of  the  domestic  product. 

Rates  suggested. — Crude  magnesite,  not  more  than  $4  per  ton ;  cal- 
cined magnesite,  not  more  than  $9  per  ton ;  magnesium  chloride,  not 
more  than  15  per  cent  ad  valorem. 

Remarks. — An  increased  duty  on  these  materials  will  greatly  re- 
duce the  use  of  magnesium  oxychloride  cements  in  building,  as  the 
oxychloride  cement  industry  is  in  no  condition  to  pay  higher  prices. 

PARAGRAPH  47. PLASTIC  MAGNESITE. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  F.  E.  Schundler,  representing  himself,  dealing  in  plastic  magnesite;  3 
chemical  companies,  4  jobbers  of  magnesite,  and  18  manufacturers  of 
magnesite  flooring  and  magnesite  stucco ;  address,  Joliet,  111. 

Hearings:  Pages  1082-1087. 

Costs  and  selling  prices. — Grecian  magnesite  can  be  bought  for  $12 
a  ton.  It  would  cost  to  produce  similar  ore  in  California  not  less  than 
$10  per  ton,  and  the  freight  rate  by  water — the  cheapest  way — from 
the  California  mine  to  Chester.  Pa.,  is  $15  per  ton. 

Size  of  industry, — Prior  to  the  war  the  plastic  business  was  insig- 
nificant, as  architects  were  opposed  to  the  use  of  magnesite  in  stucco 
and  flooring.  Now  that  it  has  been  proved  to  them  that  American 
magnesite  is  a  good  material,  they  aie  in  favor  of  it.  If  great  quanti- 
ties of  foreign  magnesite  of  an  inferior  quality  are  allowed  to  come  in, 
it  will  mean  that  the  industry  will  be  discredited ;  the  architects  will 
again  oppose  the  use  of  the  material  and  destroy  the  industry.  The 
witness  handled  $1.200,000  worth  of  magnesite  last  year  and  the 
manufacturers  whom  he  represents  handled  over  $5.000,000  worth. 
Last  year  these  manufacturers  used  25,000  tons  of  plastic  magnesite, 
or  70  per  cent  of  the  total  consumption  of  35.000  tons. 

Comparability. — Grecian  magnesite,  which  is  mostly  used  for  plas- 
tic purposes,  is  not  uniform  or  up  to  standard.  Magnesite  stucco 
made  of  foreign  magnesite  will  show  defects  within  two  or  three 
years — not  earlier — and  will  fall  to  pieces. 

Rates  suggested. — A  duty  of  $15  per  ton,  or  three-quarters  of  a  cent 
a  pound  on  magnesite,  as  in  the  bill.  The  consumers  of  plastic  mag- 
nesite are  Vitally  interested  in  obtaining  a  magnesite  of  high-grade, 


68  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

uniform  quality.  They  realize  that  a  cheap  quality  of  magnesite  will 
mean  ultimate  destruction  of  the  entire  plastic  magnesite  industry, 
and  are  therefore  in  favor  of  a  duty  of  $15  per  ton  on  calcined  mag- 
nesite, which  will  enable  the  American  producer  to  continue  to  turn 
out  a  good  product  and  further  improve  the  quality  of  this  material. 
It  will  also  force  foreign  producers  to  improve  their  quality. 

Remarks. — A  brief  filed  by  the  witness  contains  the  assertion  that 
"  the  eastern  territory  of  the  United  States  is  at  present  supplied  en- 
tirely with  foreign  magnesite." 

Objections  to  this  and  other  statements  are  made  in  a  letter  addressed 
on  October  26,  1921,  to  the  chairman  of  the  Senate  Committee  on 
Finance  by  the  Marine  Decking  &  Supply  Co.,  of  Philadelphia.  The 
letter  states  that  the  company  had  used  during  the  latter  part  of  1920 
more  Californian  than  Grecian  magnesite  and  refers  to  the  United 
States  Geological  Survey  as  authority  for  the  claim  that  the  two 
products  are  "  identical  in  physical  structure  and  approximately 
identical  in  chemical  analysis  in  a  crude  state."  Any  inferiority  in 
Grecian  magnesite  in  its  calcined  state  is  alleged  to  be  due  to  "  im- 
proper handling  and  grinding  in  a  specific  case." 

The  company  disclaims  any  interest,  financial  or  otherwise,  in 
Grecian  magnesite,  desiring  only  that  an  equitable  duty  of  not  over 
$4  per  ton  on  crude  and  not  over  $9  per  ton  on  calcined' magnesite  be 
embodied  in  the  bill. 

Further  objection  to  Mr.  Schundler's  testimony  is  contained  in  a 
letter  dated  October  4, 1921,  from  the  Marbleoid  Co.,  Xew  York  City. 
The  letter  casts  doubt  upon  the  witness's  allegations  in  regard  to  the 
volume  of  magnesite  used  in  the  United  States  and  emphasizes  the 
importance  of  geological  reports  affirming  the  similarity  in  character 
between  crude  Grecian  and  Californian  magnesite. 

PARAGRAPH  4T. MAGNESITE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  H.  F.  Wierum,  representing  the  American  Mineral  Production  Co.,  Val- 
ley, Wash. 

Mr.  Roy  N.  Bishop,  representing  the  Northwest  Magnesite  Co.  and  the 
Western  Magnesite  Association,  San  Francisco,  Calif. 

Mr.  C.  E.  Watkins,  representing  the  National  Kellastone  Co.,  the  oldest 
manufacturer  of  magnesite  stucco  in  the  United  States,  Chicago,  111. 

FAVORING  LOWER  DUTIES  : 

Mr.  Reeves  T.  Strickland,  representing  the  Magnesite  Mining  &  Manufactur-. 
ing  Co. ;  address,  Washington,  D.  C. 

Mr.  Paul  B.  Mossman,  representing  the  American  Refractories  Co.,  Pitts- 
burgh, Pa. 

The  Buckeye  Steel  Castings  Co.,  Columbus,  Ohio.  (Brief;  no  appearance 
at  hearings.) 

Mr.  John  W.  Logan,  representing  the  Alan  Wood  Iron  &  Steel  Co.,  Phila- 
delphia, Pa. 

Mr.  John  A.  Topping,  representing  The  Republ'c  Iron  &  Steel  Co.  and  14 
others. 

Hearings :  Pages  1079-1082. 

Witness:  Mr.  H.  F.  Wierum,  representing  the  American  Mineral 
Production  Co. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  69 

Costs  and  selling  prices. — The  labor  cost,  plus  cost  of  fuel,  is  55  per 
cent  of  the  total  cost  of  magnesite  f.  o.  b.  mines.  The  latest  (and 
lowest)  cost  of  American  dead-burned  magnesite  f.  o.  b.  mines  is 
$25.  Assuming  a  20  per  cent  cut  in  wages  and  a  reduction  of  20  per 
cent  in  the  cost  of  coal,  the  lowest  cost  of  American  dead-burned 
magnesite  f.  o.  b.  mines  will  be  $22.25.  A  reduction  of  25  per  cent 
in  freight  rates  would  result  in  a  freight  charge  of  $13.80  to  the 
average  point  of  competition  with  Austrian  magnesite — Cleveland, 
Youngstown,  Pittsburgh,  etc.  Thus,  the  prospective  delivered  cost 
of  the  company's  American  magnesite  at  Pittsburgh  points  would 
be  $36.05  as  compared  with  the  cost  of  the  last  actual  deliveries — 
over  $43.  Austrian  magnesite  can  now  be  delivered  at  the  same 
Pittsburgh  points  at  a  profit  of  $19.50  per  ton. 

Size  of  industry. — The  .company  produced  65,000  tons  of  crude 
magnesite  in  1920.  The  production  of  dead-burned  magnesite  last 
year  in  the  United  States  was  approximately  90,000  tons,  while  the 
production  and  consumption  of  plastic  magnesite  during  the  same 
period  was  35,000  tons.  The  deposits  of  magnesite  are  enormous. 
The  witness's  company  has  4,000,000  tons  in  sight,  with  a  strong 
probable  ore  reserve  of  10,000,000  tons.  There  is  a  total  of  over 
20,000,000  tons  of  crude  magnesite  in  its  known  deposits,  this  being 
high-grade  material  containing  about  40  per-  cent  magnesium,  suit- 
able for  making  refractories  and  plastic  calcines. 

Rates  suggested. — The  proposed  tariff  of  $15  per  ton  on  calcined 
and  $10  per  ton  on  crude  magnesite,  as  in  the  bill,  necessary  to  render 
United  States  producers  at  least  nearly  competitive  with  foreign. 
With  the  prospective  reductions  in  wages,  fuel,  and  transportation 
costs  assumed  by  the  witness,  a  tariff  of  $16.65  would  just  equalize 
American  costs  with  Austrian  sales  prices  at  the  center  of  con- 
sumption. 

Hearings:  Pages  1064-1079. 

Witness :  Mr.  R.  N.  Bishop,  representing  the  Northwest  Magnesite 
Co.  and  the  Western  Magnesite  Association. 

Costs  and  selling  prices. — In  production  of  ores  about  75  per  cent 
of  the  final  cost  is  labor.  The  main  costs  of  dead-burned  magnesite 
are  labor,  coal,  and  freight  charges.  Austrian  magnesite  is  being 
furnished  at  less  than  the  cost  to  American  producers,  the  average 
Austrian  magnesite  wage  being  30  cents  per  day  as  compared  with 
$5.30  in  the  United  States.  About  900  pounds  of  coal  are  required 
to  produce  one  ton  of  dead-burned  magnesite.  The  coal  costs  per 
ton  of  magnesite  are  $2.80  in  Austria  and  $4.05  in  the  United  States. 

The  railroad  rate  from  Austrian  mines  to  Trieste  is  $2.15  per 
gross  ton.  The  ocean  rate  to  the  United  States  Atlantic  ports  is  $3 
per  gross  ton.  The  total  Austrian  rate  to  the  United  States  is  there- 
fore $5.15  per  gross  ton,  equivalent  to  $4.60  per  net  ton,  as  against 
a  rate  from  Washington  State  to  Atlantic  coast  points  of  $20.80  per 
net  ton.  The  rate  to  Pittsburgh,  which  is  about  the  center  of  con- 
sumption, is  $18.40  per  net  ton. 

The  table  following  shows  the  comparison  of  transportation  charges 
per  net  ton  from  Austrian  mines  and  from  the  United  States  mines 
to  various  points  of  consumption. 
77134—22 6 


70 


DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 


From 
To  —                                                              Austrian  j 
mines,    i 

From 
United 
States 
mines. 

Differ- 
ence. 

Chester  $4.60  ; 

$20.80 

$16.20 

Pittsburgh  .                   .                                   .1         9.  10  ' 

18.40 

9.30 

Harrisburg.    .                                                                                                       1         6.40 

20.80 

14.40 

Johnstown  8.  90  \ 

20.80 

11.90 

Buffalo.                           .                 .                       ...          9.10  j 

18.40 

9.30 

Youngsto.vn                                                                                                                  9.20  1 

18.40 

9.20 

The  average  sales  price  f.  o.  b.  Chewelah,  Wash.,  has  been  $29.95 
per  net  ton.  The  Austrian  selling  price  is  not  based  on  Austrian 
cost,  but  on  American  cost.  Even  in  the  face  of  the  sworn  cost 
statements  of  Austrian  magnesite,  it  is  quoted  to-day  (1921)  at 
$2.55  under  American  cost  at  all  points.  It  is  not  necessary  for 
Austrian  interests  to  reduce  their  price  more  than  a  trifle  below 
American  cost  in  order  to  get  the  total  market.  Their  magnesite  can 
be  delivered  at  Chester,  Pa.,  for  $23  per  ton.  At  present,  Austrian 
labor,  coal,  and  railroad  transportation  costs  are  less  than  prewar; 
the  present  cost  of  Austrian  material  in  United  States  money  is  also 
reduced.  Selling  prices  do. not  indicate  cost,  as  Austria  knows 
United  States  cost  and  merely  undersells  it.  Northwest  magnesite 
cost  at  mine  for  1919  and  1920  was  $25.55  per  net  ton. 

Using  the  Austrian  cost  of  $20  and  the  United  States  cost  of 
$25.55,  the  following  comparative  costs  per  net  ton  at  various  points 
of  consumption  are  reached : 

United  States  costs  compared  with  Austrian. 


Austrian 
cost. 

United 
States 
cost. 

Differ- 
ence. 

Chester  Pa  (seaboard) 

$20.00 

$46.35 

$26.35 

Pittsburgh  

24.50 

43.95 

19.45 

22.80 

46.35 

23.55 

24.30 

46.35 

22.05 

Buffalo  

24.50 

43.95 

19.45 

24.60 

43.95 

19.35 

Chicago  ' 

27  20 

42.25 

15.05 

Cleveland  

25.60 

43.95 

18.35 

1  Magnesite  for  Chicago  from  Austria  via  New  Orleans,  takes  rate  New  Orleans  to  Chicago,  $7.20  per  ton. 

Mr.  J.  E.  Lewis,  president  of  the  Harbison- Walker  Refractories 
Co.,  in  a  letter  to  the  witness,  dated  March  14,  1921.  stated  that  the 
company  could  buy  Austrian  magnesite,  delivered  Chester,  Pa.,  for 
$15  to  $20  a  ton  below7  the  price  of  the  Northwest  Magnesite  Co. 

Size  of  industry. — In  the  four  years  of  operation  of  the  Northwest 
Magnesite  Co.  its  gross  receipts  have  been  $6,210,951.18.  The  com- 
pany has  passed  to  net  surplus  $1,043,498.11,  invested  in  plants  and 
improvements  necessary  to  produce  the  magnesite  required.  The  350 
employees  on  January  1,  1921,  when  the  plant  was  closed  down,  are 
reduced  to-day  to  9  men  watching  the  property  for  the  insurance 
companies. 

The  brief  filed  by  the  witness  cites  the  Senate  Report  No.  458, 
Sixty-sixth  Congress,  as  stating  that  65  mines  operated  in  1917  were 


DIGEST  OF   TARIFF    HEARINGS,   H.    R.    7456.  71 

jm:  hieing  enough  magnesite  in  the  States  of  Washington  and  Cali- 
fornia to  supply  the  entire  demand  of  this  country.  Prior  to  the 
war  there  were  fewer  than  50  men  employed  in  the  production  of 
magnesite  in  the  United  States,  but  this  number  was  increased  in 
the  years  1917  and  1918  to  about  2,000  men  directly  engaged  in  the 
magnesite  industry.  Their  average  wage  was  $5  per  day.  A  table 
in  "  Mineral  Resources  of  the  United  States."  1920,  Part  II,  shows 
that  the  United  States 'produced  2.7  per  (ent  of  the  domestic  require- 
ments of  magnesite  in  1913  and  89.2  per  (ent  in  1917.  In  1921  the 
industry  has  reverted  to  prewar  conditions,  as  the  mines  are  shut 
down  and  from  7.000  to  9,000  tons  per  month  are  being  imported. 
There  are  in  the  United  States  millions  of  ton^  of  magnesite,  suffi- 
cient to  supply  the  country's  demand  for  several  generations. 

Rates  suggested. — A  specific  duty,  as  in  the  bill,  of  three-fourths 
of  1  cent  per  pound  on  dead-burned  magnesite,  which  would  cost  the 
steel  companies  3.75  cents  per  ton  of  steel.  Failing  this,  the  four 
years'  effort  of  the  interests  represented  by  the  witness  will  be  repre- 
sented by  a  useless  magnesite  plant. 

Hearings:  Pages  1087.  1088. 

Witness:  Mr.  C.  E.  Watkins,  representing  the  National  Kella- 
stone  Co. 

Size  of  industry. — The  business  has  increased  tremendously  in 
recent  years. 

Rates  suggested. — A  tariff  on  magnesite  as  proposed  in  paragraph 
47.  Dealing  wTith  a  possible  supply  by  foreign  producers,  the  wit- 
ness explained  that  the  use  of  magnesite  in  oxychloride  cement  has 
been  made  possible  by  working  with  standardized  processes  and 
s  ientific  methods  of  production  which  the  foreign  producer  has 
neither  the  knowledge  nor  the  facilities  to  work  out  and  whi  h  he 
has  evidenced  no  inclination  to  adopt  in  preference  to  his  antiquated 
methods.  A  domestic  source  of  supply  is  regarded  by  the  witness  as 
essential  to  the  oxychloride  cement  industry. 

Similar  views  are  expressed  in  a  brief,  separately  summarized  at 
foot,  submitted  by  the  Sierra  Magnesite  Co..  a  consolidation  of 
nearly  all  the  magnesite  workings  in  the  San  Joaquin  Valley  under 
one  ownership  and  management. 

Remarks. — Mr.  Watkins's  testimony  is  referred  to  in  a  letter,  dated 
October  26,  1921.  of  the  Marine  Decking  &  Supply  Co..  Philadelphia, 
noted  under  "Remarks'"  in  Mr.  Schundler's  testimony.  Mr.  Wat- 
kins  is  therein  described  as  "  not  only  representing  a  user  of  magne- 
site but  also  a  prodii'  er  of  magnesite',"  and  as  such  potentially  preju- 
diced in  favor  of  those  interests. 

In  a  letter  of  October  4,  1921,  the  Marbleoid  Co.,  New  York  City. 
appears  to  deprecate  the  importance  attached  by  Mr.  Watkins  to  the 
superiority  of  American  calcination  methods/  It  is  urged  that  a 
tariff  of  $10  per  ton  on  crude  magnesite  (2  tons  being  required  to 
make  1  ton  of  calcined)  would  render  it  economically  impossible  for 
eastern  manufacturers  to  benefit  from  the  advantage  of  having  a 
calcination  plant  located  near  at  hand. 


72  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   1456. 

SUMMARY   OF    BRIEF    SUBMITTED    BY    THE    SIERRA    MAGXESITE    CO.,    PARK- 
VILLE.  CALIF.,  REFERRED  TO  ABOVE. 

Costs  and  selling  prices. — Foreign  magnesite,  produced  under  a 
much  altered  wage  scale  and  lower  standard  of  living,  aided  by  a 
marked  disparity  in  monetary  exchange,  is  also  favored  by  a  water 
rate  of  approximately  $6  per  ton  in  cargo  lots  as  against  a  rail  rate 
from  California  to  New  lork  in  carload  lots'of  $22  per  ton. 

Size  of  industry. — At  the  present  time  ample  mining  and  plant 
facilities  are  available  to  supply  nearly  double  the  total  plastic  mag- 
nesite requirements  of  the  country,  using  the  1920  consumption  as  a 
basis  of  computation.  Additional  equipment  can  be  readily  installed 
to  provide  for  any  increased  demand  that  may  become  manifest.  As 
regards  production  in  the  United  States,  tbis  jumped  from  a  paltry 
few  thousand  tons  before  1914  to  several  hundreds  of  thousands  of 
tons  per  annum  in  the  ensuing  years. 

Comparability. — The  European  magnesite  producer  has  not  alone 
failed  to  advance  the  quality  or  standard  of  magnesite  for  plastic 
uses  but  he  is  neither  equipped  to  make  a  calcined  material  conform- 
ing to  modern  higher  standards  nor  does  he-  evidence  any  indication 
of  relinquishing  his  antiquated  practices. 

Owing  to  the  great  distance  from  the  American  market,  Grecian 
magnesite  is  handled  several  times,  in  ways  injurious  to  the  material, 
before  arriving  at  its  destination;  its  condition  is  thus  always  variable 
and  decidedly  questionable.  On  the  other  hand,  the  American  article 
is  made  under  new  and  modern  processes,  giving  careful  consideration 
to  accurate  practices  which,  while  entailing  certain  additional  costs, 
result  in  a  product  of  greater  value  and  standard  uniformity. 

That  American  manufacturers  of  oxychloride  goods  into  which 
magnesite  enters  fully  realize  the  greater  value  of  American^made 
magnesite  is  demonstrated  by  a  resolution  unanimously  passed  by  the 
National  Association  of  Oxychloride  Cement  Manufacturers  favor- 
ing a  tariff  on  all  foreign  calcined  lump  or  powdered  magnesite. 

With  a  tariff  of  $15  per  ton  on  plastic  magnesite,  as  proposed  in  Ihe 
bill,  the  total  increase  in  the  cost  to  manufacturers  of  a  complete  ton 
of  stucco  would  be  but  $1.85 — less  than  5  per  cent  of  the  average  sell- 
ing price  f.  o.  b.  eastern  mills.  This  would  add  less  than  3  cents  to 
the  completed  cost  of  a  square  yard  of  stucco  in  place  on  the  building, 
or  an  average  total  additional  cost  of  approximately  $7.50  to  the  ordi- 
nary suburban  residence.  In  the  case  of  oxychloride  flooring  the  in- 
crease would  average  less  than  1  cent  per  square  foot. 

Located  in  various  parts  of  the  Western  States  are  reserves  of  high- 
grade  crude  ore  amply  sufficient  to  supply  the  full  requirements  of  the 
plastic  magnesite  trade  for  many  years  to  come,  allowing  for  a  sub- 
stantial increase  in  the  use  of  this  material. 

Rates  suggested. — Assistance  in  the  form  of  a  tariff  is  absolutely 
imperative.  There  can  be  little  room  to  question  the  advisability  of 
granting  the  needed  protection  when  taking  into  account  the  tremen- 
dous advantages  gained  by  protecting  the  capital  invested,  the  labor 
employed,  the  development  of  American  natural  resources,  and  the 
domestic  expenditure  of  the  outlay  for  supplies,  power,  freight,  etc., 
as  compared  with  the  infinitesimal  present  or  temporary  difference  in 
cost. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  73 

Hearings :  Pages  1043-1052. 

Witness:  Mr.  R.  T.  Strickland,  representing  the  Magnesite  Min- 
ing &  Manufacturing  Co. 

Costs  and  selling  prices. — In  Venezuela  the  cost  of  production  is 
$7  a  ton :  freight  rate  about  $10,  making  the  total  cost  in  the  United 
States  $17  per  ton.  The  Venezuela  magnesite  sells  in  New  York  for 
$9  per  ton,  plus  freight,  or  about  $19 ;  freight  from  Pacific  coast  to 
east  of  Alleghenies  is  $21  per  ton. 

Size  of  industry. — Production  in  United  States.  1913.  9,632  tons ; 
1914,  11,000  tons:  1915,  30,000  tons;  1916.  154.000  tons:  and  1917, 
316.000  tons.  Imports  in  1913,  were  347.428  tons;  in  1914,  256,988 
tons;  in  1915,  102.913  tons;  in  1916,  93,885  tons;  and  in  1917,  34,322 
tons. 

Rates  suggested. — Place  on  free  list. 

Remarks. — The  company  is  an  American  corporation,  with  mines  in 
the  island  of  Margarita,  off  the  coast  of  Venezuela,  and  offices  in 
Washington.  D.  C. 

Hearings:  Pages  1052-1064. 

Witness:  Mr.  P.  B.  Mossman.  representing  the  American  Refrac- 
tories Co. 

Costs  and  selling  prices. — A  statement  submitted  in  regard  to  1920 
importations  of  magnesite  from  the  Austrian  plant  shows  a  total 
cost  of  $30.05  per  short  ton  on  vessel  at  United  States  Atlantic  sea- 
board ports.  A  comparative  delivery  cost  table  of  domestic  and  im- 
ported magnesite  shows  an  advantage  to  the  imported  article  over 
domestic  of  $4.94  per  ton  on  the  Atlantic  seaboard  and  of  $3.99  in 
the  Pittsburgh-Cleveland  district ;  on  the  other  hand,  the  domestic 
magnesite  has  advantage  over  the  imported  of  $1.76  in  the  Chicago- 
St.  Louis  district,  and  as  much  as  $20.17  in  the  Montana  copper  dis- 
trict. 

The  prewar  price  of  dead-burned  magnesite  was  $15.75  per  ton  at 
Atlantic  seabeard. 

Size  of  industry. — The  statement  was  made  that  there  is  not  one 
magnesite  deposit  in  the  State  of  California  with  sufficient  tonnage 
of  proper  quality  to  justify  the  erection  at  the  deposit  of  a  plant  for 
producing  synthetic  dead-burned  magnesite.  The  Geological  Sur- 
vey reports  would  indicate  that  deposits  in  Stevens  County.  Wash., 
are  not  in  excess  of  3,000,000  tons  of  commercial  grade,  and  at  the 
rate  of  production  for  the  year  1920  these  would  be  exhausted  in 
10  years.  The  total  consumption  in  the  United  States  is  estimated 
at  300.000  tons  crude  magnesite,  which  would  equal  150,000  tons  of 
calcined  or  dead  burned. 

Rates  suggested. — Magnesite  to  be  removed  from  schedule  1  and 
included  in  schedule  2.  if  it  is  to  be  made  dutiable*. 

Remarks. — "  That  the  Northwest  Magnesite  Co.  has  not  yet  suf- 
fered, after  more  than  two  years'  open  competition  with  Austrian 
magnesite.  is  evidenced  by  their  ability  to  advance  the  price  from 
$32.00'  per  ton  f.  o.  b.  Chewelah  to  $36.50  on  July  1,  1920,  and  to  $38 
on  September  1,  1920.  Eastern  consumers  in  the  early  part  of  1920 
were  paving  S32.50  per  ton  f.  o.  b.  Chewelah.  which  with  $16.07  freight 
and  tax  made  the  delivered  cost  $48.57.  After  September  1,  1920, 
they  paid  $38  Chewelah.  plus  $21.42  freight  and  tax.  making  the 
delivered  cost  $59.42,  an  increase  in  a  few  months  of  $10.85  per  ton." 


74  DIGEST   OF   TARIFF    HEARINGS,   H.  R.   7456. 

The  witness  points  out  that  the  center  of  steel  production  in  the 
United  States  is  in  the  neighborhood  of  the  Indiana-Ohio  State  line, 
and  that  there  is  a  large  consumption  of  magnesite  in  the  copper- 
smelting  industry  in  the  Rocky  Mountain  States:  consequently,  the 
product  of  the  Northwest  Magnesite  Co.  has  a  market,  and  is  ex- 
tensively used,  west  of  the  Mississippi.  Records  of  the  company 
show  that  for  1916-1918,  52  per  cent  of  the  shipments  of  magnesite 
were  to  points  east  of  the  Indiana-Ohio  State  line,  and  48  per  cent  to 
points  west  of  that  line. 

Witness :  The  Buckeye  Steel  Castings  Co.,  Columbus,  Ohio.  (Brief; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  proposed  duty  on  calcined  mag- 
nesite would  increase,  the  cost  of  steel  castings  $0.35  per  ton,  as  the 
Pacific  coast  producers  would  take  advantage  of  the  protection  af- 
forded them. 

Hearings :  Pages  1099-1102. 

Witness:  Mr.  J.  A.  Topping,  representing  the  Republic  Iron  & 
Steel  Co.,  and  14  others. 

Rates  suggested. — The  witness's  testimony  and  brief  constitute  a 
protest  against  a  duty  on  magnesite  and  its  classification  as  a  chemi- 
cal. 

Remarks. — The  views  entertained  by  the  steel  interest  are  sum- 
marized in  greater  detail  in  the  same  witness's  testimony  and  brief 
of  a  later  date,  pages  1710-1739,  hearings. 

Hearings:  Pages  1631-1633. 

Witness:  Mr.  J.  W.  Logan,  representing  the  Alan  Wood  Iron  & 
Steel  Co. 

Rates  suggested. —  (NOTE.) — In  connection  with  his  testimony  deal- 
ing with  section  301  (pig  iron  and  scrap),  the  witness's  brief  pro- 
tested against  the  proposed  high  duty  on  calcined  magnesite. 

PARAGRAPH  48. — CAMPHOR. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  John  F.  Queeny,  representing  the  Monsanto  Chemical  Works,  St. 
Louis,  Mo. 

Mr.  Robert  Ash,  representing  the  Turpentine  and  Rosin  Producers'  Associa- 
tion of  New  Orleans ;  address,  Washington.  D.  C. 

Hearings:  Pages  895-901. 

Witness:  Mr.  J.  F.  Queeny,  representing  the  Monsanto  Chemical 
Works. 

Costs  and  selling,  prices. — The-  firm  can  manufacture  synthetic- 
camphor  for  less  than  65  cents  per  pound,  with  turpentine  at  75  cents 
a  gallon.  Camphor  is  selling  to-day  at  65  cents  per  pound,  but  with- 
in the  last  two  years  the  price  was  as  high  as  $2.50  per  pound. 

Size  of  industry. — The  average  imports  of  camphor  are  about 
4,750,000  pounds  a  year.  The  building  of  a  plant  for  the  manufac- 
ture of  camphor  was  begun  last  year,  but  after  spending  about  $425.- 
000  financial  conditions  compelled  the  firm  to  discontinue  operation 
and  construction. 

Rates  suggested. — That  on  and  after  the  date  it  is  certified  to  the 
Secretary  of  the  Treasury  that  synthetic  camphor  is  being  manuf  ac- 


DIGEST  OF   TARIFF    HEARINGS,   H.    R.   7456.  75 

tured  in  the  United  States  at  a  rate  of  not  less  than  2,000,000  pounds 
per  annum  there  shall  be  levied,  collected,  and  paid  on  camphor, 
crude  and  natural,  and  camphor,  refined  and  synthetic,  when  im- 
ported into  the  United  States  from  any  foreign  country,  25  per  cent 
ad  valorem. 

Hearings:  Pages  1114-1119. 

Witness :  Mr.  K.  Ash,  representing  the  Turpentine  and  Rosin  Pro- 
ducers' Association  of  New  Orleans. 

Rates  suggested. — The  interest  of  the  Turpentine  and  Rosin  Pro- 
ducers' Association  arises  as  producers  of  the  raw  material  entering 
into  the  production  of  synthetic  camphor,  namely,  turpentine;  the 
association  desires  to  go  on  record  as  indorsing  the  proposition  made 
by  Mr.  Queeny,  of  the  Monsanto  Chemical  Works. 

PARAGRAPH  48. — MENTHOL  AND  CAMPHOR. 


FAVORING  LOWER  DUTIES  : 

The  Mentholatum  Co.,  Buffalo.  N.  Y.     (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Same  as  in  the  act  of  1913. 

Remarks. — Neither  camphor  nor  menthol  is  produced  in  the  United 
States,  and  they  consequently  do  not  compete  with  any  American  in- 
dustry. The  increased  tax  proposed  will  place  an  increased  burden 
on  American  manufacturers  and  tend  to  destroy  competition,  espe- 
cially with  Japan  and  Germany.  These  articles  are  widely  used  in 
medicines,  and  an  increased  tax  would  fall  largely  upon  the  con- 
sumer. Crude  camphor  refining  has  been  an  important  American 
industry.  The  proposed  tax  would  destroy  this  business  and  give 
the  Japanese  a  monopoly.  The  quantity  of  menthol  and  camphor 
imported  into  the  United  States  is  not  large,  and  can  not  yield  a  large 
revenue,  even  with  an  increased  duty. 

PARAGRAPH  48. — MENTHOL. 

WITNESS.  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  H.  S.  Richardson,  representing  the  Tick  Chemical  Co.,  the  Mentholatum 
Co..  the  Musterole  Co.,  the  Brame  Drug  Co..  E.  W.  Vacher  &  Co.,  and 
other  users  of  menthol ;  address,  Greensboro,  N.  C. 

Hearings:  Pages  1103-1114. 

Costs  and  selling  prices. — The  selling  price  may  vary  from  $3.15 
to  $12.50  in  12  months.  The  price  to-day  is  $4.35. 

Size  of  industry. — Imports  averaged"  43.000  pounds,  1910-1913 ; 
145,000  pounds,  1914-1918 ;  and  243,000  pounds  in  1919.  The  entire 
Japanese  crop  was  never  more  than  500,000  pounds.  There  are  300 
manufacturers  putting  up  menthol  in  package  form  and  50,000  drug- 
gists using  menthol  in  prescriptions. 

Rates  suggested. — That  menthol  be  placed  on  the  free  list.  If  the 
committee  deems  it  necessary  to  put  a  duty  on  menthol,  these  inter- 
ests request  that  it  be  a  specific  duty  about  the  same  as  that  on  cam- 
phor. This  is  desirable  in  order  to  reduce  cost  of  drug  and  lessen  the 
possibility  of  further  speculation  offered  by  ad  valorem  rates. 


76  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

FISH  OILS. 
PARAGRAPH  49. — LANOLINE  OR  WOOL  GREASE. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  North  Star  Chemical  Works,  Lawrence,  Mass.     (Brief;  no  appearance 
at  hearings.) 

Costs  and  selling  prices. — The  pre-war  price  of  lanoline  was  12  to 
14  cents  per  pound  in  bulk,  f .  o.  b.  New  York ;  it  rose  to  $1  during  the 
war,  has  since  declined  to  12  cents,  and  the  imported  product  is  now 
being  offered  at  less  than  that  figure.  The  company  can  not  manu- 
facture lanoline  profitably  at  a  market  price  of  12  cents. 

Rates  suggested. — An  embargo  on  lanoline. 

Remarks. — Prior  to  the  war  Germany  had  a  monopoly  on  lanoline. 
The  North  Star  Chemical  Co.  developed  a  refining  process  at  great  ex- 
pense and  supplied  the  requirements  of  the  Chemical  Warfare  Serv- 
ice; many  large  textile  mills  put  in  crude  wool  grease  recovery  ap- 
paratus at  considerable  expense.  Previously  the  waste  liquors  went 
into  the  rivers.  At  the  price  at  which  German  lanoline  is  now  being 
offered,  neither  the  North  Star  Chemical  Co:  nor  the  textile  mills 
can  afford  to  continue  the  recovery  and  refining  of  lanoline,  the 
crude  raw  materials  of  which  will  again  go  to  waste  unless  protection 
is  afforded. 

PARAGRAPH  49. — HERRING,  MENHADEN,  AND  WHALE  OIL,  ETC. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Alpin  I.  Dunn,  representing  the  Cook  &  Swan  Co.  (Inc.). 

Hearings:  Pages  1181-1185. 

Costs  and  selling  prices. — The  cost  of  fish  oil  in  Japan  to-day  is 
around  3  cents  per  pound.  Packing,  insurance,  and  freight  bring  this 
up  to  about  4|  cents  per  pound*c.  i.  f.  New  York. 

Rates  suggested. — Opposed  to  a  tariff  on  fish  oils,  namely,  herring, 
menhaden,  whale,  seal,  and  sperm  oil. 

Remarks. — The  witness  exhibited  a  chart  bearing  upon  production. 

PARAGRAPH  49. — COD  AND  COD-LIVER  OIL. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  C.  P.  Gulick,  representing  the  National  Oil  Products  Co.,  Newark,  N.  J. 
Rieff  &  Co.,  Philadelphia,  Pa.     (Brief.) 

Hearings:  Pages  1151-1161. 

Witness :  Mr.  C.  P.  Gulick. 

Comparability. — Domestic  cod  oil  is  unsatisfactory  as  a  substitute 
for  the  Newfoundland  oil ;  it  is  noncompetitive  with  it  for  the  follow- 
ing reasons: 

(a)  Coming  from  fish  caught  in  comparatively  warm  waters,  it 
lacks  the  necessary  cold  test  and  is  therefore  too  gummy  and  spews 
out  on  the  finished  leather,  causing  irreparable  damage. 


DIGEST  OF  TARIFF   HEARINGS,  H.   R.   7456.  77 

(l>)  There  is  practically  no  pure  domestic  oil  produced,  as  Ameri- 
can fishermen  do  not  separate  the  cod  livers  from  those  of  the  other 
fish  which  constitute  the  average  catch,  and  therefore  the  so-called 
domestic  cod  oil  is  rarely,  if  ever,  a  pure  cod-liver  oil.  Only  a  liver  oil 
is  suitable  for  tanning  purposes,  and  therefore  the  leather  manu- 
facturers insist  upon  pure  Newfoundland  oil  only. 

Rates  suggested.  —  Cod  oil  should  be  retained  on  the  free  list. 

Remarks.  —  Only  about  20  per  cent  of  cod  and  cod-liver  oils  are  used 
for  medicinal  purposes  ;  the  bulk  of  the  oil  imported  or  produced  is 
for  industrial  uses. 

Witness:  Reiff  &  Co.,  Philadelphia,  Pa.  (Brief;  no  appearance  at 
hearings.) 

Remarks.  —  American  cod  oil  is  inferior  to  Newfoundland  cod  oil. 
The  proposed  tax  will  result  in  higher  prices  for  inferior  shoes, 
harness,  etc. 

VEGETABLE  OILS. 
PARAGRAPH  50.  —  sCocoNUT  AND  LINSEED  OIL. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  John  F.  Conway,  representing  E.  F.  Drew  Co.  (Inc.),  New  York  City. 

Hearings  :  Pages  1194-1197. 

Costs  and  selling  prices.  —  Coconut  oil  is  selling  around  8^  to  8| 
cents,  about  the  same  as  in  1914.  In  1919  the  price  was  18£  or  19 
cents.  A  duty  of  2  cents  per  pound  on  the  raw  material  would  mean 
more  than  that  on  the  finished  product. 

Size  of  industry.  —  Two  refining  plants,  with  a  capacity  of  about 
900,000  pounds  a  week  when  running  full. 

Rates  suggested.  —  That  coconut  oil  be  put  on  the  free  list  rather 
than  listed  at  2  cents  per  pound  as  in  paragraph  50. 

That  the  duty  on  linseed  oil  be  not  increased  over  10  cents  a  gallon. 
Reasons  :  To  enable  domestic  refiners  to  import  and  refine  oil  at  a 
profit. 

XOTE.  —  See  also  pages  1161-1174,  testimony  of  Mr.  W.  M.  Hutchinson. 

PARAGRAPH  50.  —  OLIVE  OIL. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Walter  V.  Vick,  representing  the  Olive  Oil  Association  of  America, 

New  York  City. 
FAVORING  LOWER  DUTIES  : 

The  American  Chamber  of  Commerce,  Paris,  France.     (Brief.) 


REQUESTING 

Mr.  R.  U.  Delaphena,  representing  R.  U.  Delaphena  &  Co.   (Inc.)  and  La 

Manna,  Azema  &  Farnan,  New  York  City. 
Mr.  Nathan  Musher,  president,  representing  Musher  &  Co.,  Baltimore,  Md. 

Hearings  :  Pages  1235-1239. 

Witness:  Mr.  W.  V.  Vickf  representing  the  Olive  Oil  Association 
of  America. 


78  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

Size  of  industry. — To-day,  $2,500,000  is  invested  in  olive-oil  pack- 
ing: plants. 

Rates  suggested. — The  association  recommends  a  duty  of  20  cents 
per  gallon  in  bulk  and  a  differential  of  10  cents  on  packed,  in  order 
to  favor  the  packing  of  oil  in  this  country. 

NOTE. — See  also  pages  1161-1174,  testimony  of  Mr.  W.  M.  Hutchinson. 

Witness:  The  American  Chamber  of  Commerce,  Paris,  France. 
(Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Thirty  cents  per  gallon  for  5-gallon  packages  or 
over;  40  cents  per  gallon  for  less  than  5-gallon  packages. 

Remarks. — The  increased  duty  proposed  is  for  the  protection  of  the 
California  producers,  whose  output  is  insignificant  compared  with 
domestic  needs,  and  of  edible  cottonseed  and  peanut  oil  dealers,  whose 
product  can  not  compare,  either  in  nutritive  value  or  pharmaceutical 
properties,  with  olive  oil.  .  . 

Hearings :  Pages  1228-1231. 

Witness:  Mr.  R.  U.  Delaphena,  representing  R.  U.  Delaphena  & 
Co.  and  others. 

Costs  and  selling  prices. — The  cost  of  1  gallon  of  olive  oil,  packed 
in  the  United  States,  is  $2.50,  without  profit.  Owing  to  a  surplus  of 
tin  plate,  cans  are  made  in  Italy  and  France  for  one-fourth  the  price 
in  this  country.  Latest  cabled  quotations  are  $2.25  per  gallon,  duty 
paid. 

Size  of  industry. — One  thousand  persons  work  in  olive-oil  packing 
factories.  Business  in  1919  amounted  to  nearly  $2.000,000. 

Rates  suggested. — No  request  as  to  rates,  "but  there  should  be  a 
difference  of  at  least  1^  cents  per  pound  between  olive  oil  imported 
in  bulk  and  olive  oil  imported  in  packages  weighing  less  than  44 
pounds. 

Hearings:  Pages  1231-1235. 

Witness :  Mr.  N.  Musher,  representing  Musher  &  Co. 

Costs  and  selling  prices. — Tins,  cases,  and  labor  in  1920  cost  80 
cents  per  gallon  of  oil ;  in  1919,  70  cents.  Prewar  price,  $4  a  gallon 
on  gallon  tins,  $2  on  half-gallon  tins,  $1  on  quart  tins,  50  cents  on 
pint  tins,  and  25  cents  on  half-pint  tins. 

Size  of  industry. — The  firm  imports  1.000,000  gallons  a  year  and 
has  at  least  $1,000,000  invested  in  plant  and  equipment. 

Rates  suggested. — A  duty  of  5^  cents  per  gallon  in  bulk,  7i  cents 
in  package — a  differential  of  2^  cents  between  bulk  and  packed  oil. 

NOTE. — See  also  pages  1161-1174,  testimony  of  Mr.  W.  M.  Hutchinson. 

PARAGRAPH  50. — LINSEED  OIL. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.    William    O.    Goodrich,    representing   the    William    O.    Goolrich   Co., 
Milwaukee,  Wis. 

Hearings :  Pages  1223-1227. 

Costs  and  setting  prices. — Table  submitted,  showing  comparative 
rates  of  wages  in  the  linseed-oil  crushing  industrv  in  the  United 
States,  England,  Holland,  and  Germany.  A  comparison  of  costs  in 


DIGEST  OF   TARIFF    HEARINGS,   H.    R.    7456.  79 

the  larger  and  better  equipped  mills  in  the  United  States  shows  an 
average  total  cost  of  50  cents  per  bushel  of  seed  crushed. 

Rates  suggested. — A  rate  of  25  cents  per  gallon  on  linseed  oil,  if 
30  cents  per  bushel  on  foreign  seed  be  maintained. 

Remarks. — A  bushel  of  flaxseed  (56  pounds)  yields  19  pounds  of 
linseed  oil  and  37  pounds  of  linseed-oil  cake. 

PARAGRAPH  50. — COTTONSEED  OIL. 
WITNESS,  AND  INTEREST  REPBESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  W.  B.  Chittenden  (statement  and  brief),  representing  the  Peet  Bros. 
Manufacturing  Co..  Kansas  City,  Kans. 

Hearings :  Pages  1218-1223. 

Costs  and  setting  prices. — The  prewar  price  of  cottonseed  oil 
ranged  around  4.5  to  6.5  cents  per  pound.  This  normal  price  has 
prevailed  during  the  greater  part  of  this  season — 1921.  It  would 
appear  that  a  duty  of  2  cents  per  pound  on  the  inferior  imported 
cottonseed  oil  would  put  a  stop  to  imports. 

PARAGRAPH  50. — CASTOR  OIL. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  B.  E.  Renter,  consulting  engineer,  representing  the  Bureau  of  Raw 
Materials  of  the  Animal  and  Vegetable  Fat  Oil  Industry ;  address,  Phila- 
delphia, Pa. 

Hearings:  Pages  1215-1218. 

Costs  and  selling  prices. — Prior  to  1915  the  average  price  of  medici- 
nal castor  oil  ranged  between  8  and  10  cents  per  pound.  At  an  aver- 
•  age  of  9  cents  the  duty  of  4|  cents  in  H.  R.  7456  would  be  equal  to  an 
ad  valorem  duty  of  50  per  cent.  Considering  the  lower  value  of  No.  2 
and  No.  3  grades  of  castor  oil,  this  duty  can  be  calculated  to  run  as 
high  as  75  per  cent  ad  valorem. 

Rates  suggested. — That  castor  oil  be  admitted  free  of  duty  or  car- 
ried at  the  same  rate  provided  in  the  act  of  1913.  If  the  duty  of  one- 
half  cent  per  pound  on  castor  beans  be  retained,  the  duty  of  4J  cents 
per  pound  on  castor  oil  should  be  revised  to  a  rate  not^higher  than 
2.}  cents  per  pound. 

Remarks. — The  duty  on  castor  beans,  H.  R.  7456,  is  25  cents  per 
bushel  and  equivalent  to  1^  cents  per  pound  on  the  castor-oil  content. 
The  duty  of  4^  cents  per  pound  on  castor  oil  gives  a  differential  of 
3^  cents  per  pound  in  favor  of  the  American  crusher. 

PARAGRAPH  50. — EDIBLE  OILS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  A.  M.  Loomis   (statement  and  brief),  representing  the  National  Dairy 

Union ;  address,  Washington.  D.  C. 
Mr.  Frank  O'Hara,  representing  the  American  Farm  Bureau  Federation ; 

address,  Washington,  D.  C. 


80  DIGEST   OF   TARIFF    HEARINGS,   H.  R.    7456. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES — Continued. 

Mr.  W.  M.  Hutchinson  (statement  and  brief),  representing  the  crude  cotton- 
seed-oil tariff  committee. 

Mr.  Charles  W.  Holman,  representing  the  National  Milk  Producers'  Federa- 
tion and  the  National  Board  of  Farm  Organizations. 

Public  and  Private  Garbage  Reduction  Plants,  Cleveland,  Ohio.     (Brief.) 
FAVORING  LOWER  DUTIES  : 

Mr.  C.  Rogers  Brown  (statement  and  brief),  representing  the  Bureau  of 
Raw  Materials  for  American  Vegetable  Oils  and  Fats  Industries;  ad- 
dress, Seattle,  Wash. 

Mr.  S.  W.  Eckmau,  representing  B.  T.  Babbitt. 

Mr.  Gilbert  Colgate,  representing  Colgate  &  Co.,  New  York  City. 

The  Port  of  Seattle,  Wash.     (Brief.) 

The  N.  K.  Fairbanks  Co.,  Milwaukee,  Wis.     (Brief.) 

Hearings:  Pages  1174-1183 

Witness:  Mr.  A.  M.  Loomis,  representing  the  National  Dairy 
Union. 

Rates  suggested. — A  duty  of  10  cents  per  pound  on  this  group  of 
edible  oils,  namely,  coconut,  cottonseed,  soya-bean,  and  peanut  oils. 
The  union  asks  for  a  tariff  on  edible  oils  equal  to  that  which  the  com- 
mittee may  decide  to  put  on  butter,  but  is  willing  to  agree  to  a  draw- 
back for  denatured  oils  and  for  oils  of  which  it  can  be  shown,  to  the 
satisfaction  of  administering  officials,  that  they  are  not  used  for  food. 

Remarks. — To  allow  foreign  vegetable  oils  to  continue  to  enter  at 
the  rate  of  duty  provided  in  paragraph  50  of  the  present  bill  would 
imperil  the  continuance  of  a  domestic  industry  which  the  union  thinks 
indispensible  to  health  and  the  continuance  of  agriculture.  There  is 
submitted  a  comparative  table  of  weekly  average  prices  covering 
butter  fat  and  coconut  oil  between  May  14  arid  August  6, 1921. 

NOTE. — See,  also,  pages  1161-1174,  testimony  of  Mr.  W.  M.  Hutchinson. 

Hearings :  Pages  1183-1186. 

Witness:  Mr.  Frank  O'Hara,  representing  the  American  Farm 
Bureau  Federation. 

Rates  suggested. — The  federation  is  in  favor  of  the  proposal  to 
levy  protective  duties  on  imported  vegetable  oils  competing  with 
American  dairy  and  lard  and  domestic  vegetable  oil  industries.  It 
recommends  a  duty  of  10  cents  per  pound  on  oils  used  for  food  and 
5  cents  per  pound  for  those  used  for  industrial  purposes. 

Hearings:  Pages  1161-1174. 

Witness :  Mr.  W.  M.  fiutchinson,  representing  the  Crude  Cotton- 
seed Oil  Tariff  Committee. 

Costs  and  selling  prices. — The  present  market  price  of  crude  cotton- 
seed oil  is  5-|  cents  per  pound,  f.  o.  b.  producing  points.  Soya-bean 
oil  is  the  leading  competitor  and,  with  cottonseed  oil,  may  be  pur- 
chased on  the  Pacific  coast  at  4|  cents  per  pound.  ,A  table  submitted 
shows  domestic  production,  imports,  and  exports  of  the  various  vege- 
table oils. 

Size  of  industry. — There  are  now  more  than  800  oil  mills,  repre- 
senting an  investment  of  approximately  $180.000,000.  The  average 
annual  production  of  cotton  seed,  1912^918,  was  about  1,462,000,000 
pounds. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  81 

Rates  suggested. — A  brief  submitted  by  the  witness  in  behalf  of  oil 
interests  includes  the  following,  all  under  paragraph  50 : 

Cents  per  pound. 

On  coconut  oil , 5 

On  crude  peanut  oil 5 

On  refined  peanut  oil 6 

On  edible  olive  oil 5 

On  nonedible  olive  oil 4 

On  crude  cottonseed  oil 5 

On  refined  cottonseed  oil 6 

On  crude  soya-bean  oil 5 

On  refined  soya-bean  oil 6 

On  sesame  oil : 5 

The  same  interests  desire  the  following  duties  on  the  respective 
oil-bearing  materials,  otherwise  coming  into  competition  with  domes- 
tic cottonseed  oil : 

Cents  per  pound. 

On  shelled  peanuts  (par.  757) 4 

On  unshelled  peanuts  (par.  757) 

On  palm  kernels,  nuts,  and  fruits  (par.  757) 3 

Remarks. — From  75  to  80  per  cent  of  the  crude  cottonseed  oil  is 
used  in  making  lard  substitutes  and  about  5  per  cent  in  the  manu- 
facture of  oleomargarine;  approximately  one-half  the  remainder  is 
exported,  and  the  balance  is  absorbed  by  soap  makers  for  minor 
uses. 

Hearings:  Pages  5143-5162. 

Witness :  Mr.  Charles  W.  Holman,  representing  the  National  Milk 
Producers'  Federation  and  the  National  Board  of  Farm  Organiza- 
tions. 

Rates  suggested. — Four  cents  per  pound  on  cottonseed,  coconut, 
and  soya-bean  oils  and  4£  cents  per  pound  on  peanut  oil. 

Remarks. — It  has  been  brought  out  by  other  witnesses  that  pro- 
tection is  desired  against  the  increasing  amounts  of  oils  imported  in 
the  past  from  the  Orient,  as  shown  in  exhaustive  statistical  tables 
appended  to  the  witness's  brief. 

Witness:  Public  and  private  garbage-reduction  plants,  Cleveland, 
Ohio.  (Brief;  no  appearance  at  hearings.) 

Costs  and  setting  prices. — The  best  price  now  obtainable  for  gar- 
bage grease  is  1£  to  2  cents  per  pound,  as  against  an  average  price,  for 
10  years  prior  to  the  war.  of  4£  cents. 

Size  of  industry. — Twenty-four  plants  dispose  of  city  garbage  only, 
and  of  these  14  are  municipally  owned  and  operated.  There  are  sev- 
eral hundred  small  privately  owned  plants. 

Rates  suggested. — Two  and  one-half  cents  per  pound  on  coconut 
oil,  peanut  oil,  cottonseed  oil,  soya-bean  oil,  nonedible  fish  oil,  and 
wool  grease. 

Remarks. — Unless  protection  is  afforded,  garbage-reduction  plants 
will  be  forced  to  go  out  of  business  because  of  the  influx  of  foreign 
vegetable  oils ;  valuable  material  will  go  to  waste. 

Hearings :  Pages  1127-1151. 

Witness :  Mr.  C.  R.  Brown,  representing  the  Bureau  of  Raw  Mate- 
rials, etc. 

Size  of  industry. — Most  of  the  cottonseed  oil  from  the  South  is  re- 
fined; an  average  of  1,130,000,000  pounds  passing  through  refining 
industry  plants  is  converted  into  vegetable  lard.  About  168,000,000 


82  DIGEST    OF    TARIFF    HEARINGS,    H.  R.    7456. 

pounds  goes  directly  into  the  soap  kettle.  The  domestic  production  of 
pure  animal  lard  is  1,117,000,000  pounds  a  year,  of  which  635,000,000 
pounds  is  exported,  chiefly  to  Europe.  It  is  only  on  account  of  the 
vegetable  lard  that  this  quantity  of  the  pure  article  can  be  exported. 
Exports  of  domestic  production  are  as  follows : 

Seap _  $15,  000,  000 

Animal    lard $150,  (KK),  000 

Vegetable  oils $12,  000,  000 

Refined  cottonseed  oil $37,000,000 

Oleomargarine _pounds__  15,  000.  000 

Soya-bean  oil * do 47,  000,  000 

Paint $25,  000,  000 

Rates  suggested. — The  bureau  is  opposed  to  a  duty  on  vegetable 
oils;  even  2  cents  per  pound  would  be  prohibitive. 

Remarks. — If  these  oils  are  barred  from  the  United  States,  there  is 
only  one  thing  that  can  happen ;  instead  of  coming  from  Asia  into 
the  United  States  the  oils  will  create  competition  that  can  not  be 
eliminated. 

Hearings :  Pages  1272-1279. 

Witness:  Mr.  S.  W.  Eckman,  representing  B.  T.  Babbitt. 

Rates  suggested. — Soap  manufacturers  are  opposed  to  the  imposi- 
tion of  a  tariff  on  the  raw  materials  of  the  industry. 

Remarks. — Soap  manufacturers  do  not  ask  for  protection  on  the 
finished  product,  being  able  to  look  out  for  themselves  in  that  respect 
if  raw  materials  remain  on  the  free  list. 

Hearings :  Pages  1279,  1280. 

Witness :  Mr.  G.  Colgate,  representing  Colgate  &  Co. 

Rates  suggested. — The  witness  indorses  the  testimony  of  Mr.  Eck- 
man in  regard  to  free  vegetable  oil  and  duties  on  soap. 

Witness:  The  Port  of  Seattle,  Seattle,  Washington.  (Brief;  no 
appearance  at  hearings.) 

Remarks. — Millions  of  dollars  have  been  invested  in  terminal  fa- 
cilities, tanks,  etc.  at  Seattle,  to  handle  oriental  vegetable  oils;  this 
industry  is  threatened  by 'the  proposed  tariff  on  these  oils. 

Witness:  The  N.  K.  Fairbanks  Co.,  Milwaukee,  Wis.  (Brief;  no 
appearance  at  hearings.) 

Remarks. — As  brought  out  by  various  witnesses  in  previous  testi- 
mony, coconut  oil  is  not  substitutable  for  cottonseed  oil,  and  the  latter 
is  substitutable,  to  a  limited  extent  only,  for  soya  bean  oil.  Other 
points  previously  brought  out  are  also  substantiated. 

PARAGRAPH  50. — COCONUT  OIL. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Barry  Mohun,  representing  the  Eldorado  Oil  Works;  address,  Wash- 
ington, D.  C. 

FAVORING  LOWER  DUTIES: 

Mr.  Louis  H.  Waltke,  representing  Win.  Waltke  &  Co.,  soap  manufacturers, 
St.  Louis,  Mo. 

Mr.  Vincente  Villamin,  representing  Santa  Anna  Oil  Mills.  Manila,  P.  I. 

Mr.  Francis  M.  Turner,  representing  the  American  Nut  &  Seed  Oil  Cor- 
poration. 

Mr.  F.  N.  Barnes  (statement  and  brief),  representing  Procter  &  Gamble 
Co.,  Cincinnati,  Ohio. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  83 

REQUESTING  RECLASSIFICATION  : 

Mr.  George  T.  Pierie,  president  (statement  and  brief),  representing  the 
Gorgas-Pierie  Co.,  Philadelphia,  Pa. ;  C.  F.  Simonin's  Sons,  Philadelphia, 
Pa. ;  the  Oil  Seeds  Co.,  New  York  City. 

Hearings:  Pages  1186-1194. 

Witness :  Mr.  B.  Mohun,  representing  the  Eldorado  Oil  Works. 

Size  of  industry. — The  company  has  an  investment  of  more  than 
$1,000,000  and  is  engaged  in  the  coconut-oil  industry;  on  the  Pacific 
coast,  30  concerns,  with  a  total  capital  of  $10,000,000. 

Rates  suggested. — That  after  the  words  "  coconut  oil,"  appearing 
in  line  15,  page  17  (H.  R.  7456),  the  words  "including  coconut  oil 
imported  from  the  Philippine  Islands  "  be  added. 

Hearings :  Page  1208. 

Witness :  Mr.  L.  H.  Waltke,  representing  Wm.  Waltke  &  Co. 

Rates  suggested. — The  firm  produces  so-called  cold-process  toilet 
soap,  calling  for  a  high  grade  of  coconut  oil.  As  the  oils  produced 
in  the  Philippines  and  this  country  are  not  suitable  for  the  purpose, 
the  witness  objects  to  a  duty  of  2  cents  a  pound  on  the  fine  material 
imported  from  Java,  Cochin,  and  Ceylon. 

Hearings:  Pages  1208-1211. 

Witness:  Mr.  v.  Villamin,  representing  Santa  Anna  Oil  Mills. 

Rates  suggested. — That  coconut  oil  be  retained  on  the  free  list. 

Remarks. — The  witness  points  out  that,  in  1919.  75  per  cent  of  the 
coconut  oil  consumed  in  the  United  States  came  from  the  Philippine 
Islands. 

Hearings :  Pages  1211-1214. 

Witness :  Mr.  F.  M.  Turner,  representing  the  American  Nut  &  Seed 
Oil  Corporation. 

Size  of  industry. — The  company -employs  about  150  men  in  its 
crushing  plant. 

Rates  suggested. — Is  in  favor  of  allowing  things  to  remain  as  they 
are  and  does  not  object  to  the  Philippine  oils  coming  in  duty  free. 

Remarks. — Soap  manufacturers  use  Manila  or  Philippine  coconut 
oil  and  though  the  proportion  in  the  soap  varies  with  each  manufac- 
turer it  is  very  small.  Philippine  oil  would  come  in  free  under  the 
present  bill.' 

Hearings:  Pages  1197-1208. 

Witness :  Mr.  F.  N.  Barnes,  representing  Procter  &  Gamble  Co. 

Costs  and  selling  prices. — The  cost  of  raw  materials  entering  into 
the  production  of  soap  is  a  much  more  important  item  than  the  cost 
of  labor,  unskilled  to  a  large  extent.  According  to  the  latest  data 
available  from  the  Bureau  of  Census,  the  establishments  engaged  in 
the  manufacture  of  soap  paid  during  the  year  1914  the  sum  of  $88,- 
866,786  for  the  raw  materials  required  in  the  manufacture  of  soap, 
while  they  paid  for  both  salaries  and  wages  the  sum  of  $14,779,629, 
or  a  ratio  of  6  to  1. 

Rates  suggested. — That  coconut  oil  be  retained  on  the  free  list. 

Remarks. — The  witness  thinks  his  company  has  the  largest  copra- 
crushing  plant  in  the  United  States  and  does  not  feel  the  need  of  pro- 
tection. An  increase  of  2  cents  per  pound  in  the  price  of  any  oil 
used  in  the  manufacture  of  soap  would  increase  the  cost  of  soap  to  the 
consumer  by  one-half  cent  per  pound  for  ordinary  laundry  soap. 


84  DIGEST  OF  TARIFF   HEARINGS,  H.  R.   7456. 

From  one-half  to  two-thirds  of  the  importations  of  coconut  oil  is 
used  by  soap  manufacturers.  A  table  presented  shows  the  percentage 
of  various  vegetable  oils  consumed  by  the  soap  industry,  1912-1917. 
Another  gives  the  consumption  of  coconut  oil  by  industries,  showing 
that  more  than  one-half  of  the  coconut  oil  consumed  in  1918  went  into 
the  manufacture  of  soaps. 

Hearings:  1261-1272. 

Witness :  Mr.  G.  T.  Pierie,  representing  the  Gorgas-Pierie  Co.  and 
others. 

Costs  and  selling  prices: — It  costs  the  American  miller  $8  to  crush 
one  ton  of  2,240  pounds  of  copra.  In  Java  and  the  Philippines  the 
cost  of  crushing  is  $3.  Freight  on  oil  from  Java  and  the  Philippines 
to  the  Atlantic  ports  is  $9  a  ton,  and  on  copra  $16.80  per  ton. 

Size  of  industry. — Upward  of  $15,000,000  invested  in  buildings 
and  equipment,  the  total  investment  being  $30,000,000  to  $35,000,000. 
Total  crushing  capacity  at  least  400,000  tons  of  copra  and  palm  ker- 
nels per  annum. 

Rates  suggested. — That  coconut  oil  be  retained  dutiable  at  2  cents 
per  pound  and  that  palm-kernel  oil  be  transferred  from  paragraph 
1626,  free  list,  to  paragraph  50  in  order  to  maintain  the  oil-crushing 
industry  in  the  United  States.  It  is  further  requested  that  the  same 
duty  be  applied  to  coconut  oil  from  the  Philippines  or,  at  least,  that 
a  limit  be  put  on  duty-free  importations  from  the  Philippines  or, 
alternatively,  that  an  export  duty  be  levied  in  the  Philippines.  It  is 
also  requested  that  copra  and  palm  kernels  be  maintained  on  the  free 
list  under  paragraph  1620. 

See  also  pages  1161-1174,  testimony  of  Mr.  W.  H.  Hutchinson  and 
the  following  summary  of  letter  from  Lightfoot  Co. 

Remarks. — In  a  letter  dated  August  26,  1921,  addressed  to  the 
chairman  of  the  Senate  Finance  Committee,  the  Lightfoot  Schultz 
Co.,  manufacturers  of  shaving  and  toilet  soaps,  1412-1424  Park  Ave- 
nue, Hoboken,  N.  J.,  takes  exception  to  certain  testimony  given  at 
these  hearings. 

Objection  is  expressed  to  statements  made  by  Mr.  George  T.  Pierie 
on  August  16,  imputing  selfish  motives  to  representatives  of  foreign 
oil  crushers  and  others  in  opposing  duties  on  oils  while  acquiescing 
in  duties  on  soap,  margarine,  paint,  and  varnish.  The  letter  points 
out  that  soap  makers  voluntarily  recommended,  before  the  Committee 
on  Ways  and  Means,  that  no  increase  in  the  present  5  per  cent  duty 
on  soap  be  made,  providing  no  duty  were  placed  on  the  raw  materials. 
The  position  of  the  protesting  company  has  been,  and  still  is,  based 
on  the  ground  that  the  industry  depends  on  free  raw  materials.  The 
company  deprecates  any  attempt  to  minimize  the  importance  of  that 
principle  to  American  soap  manufacturers. 

PARAGRAPH  50. — PEANUT  OIL,. 
WITNESSES,  AND  INTERESTS  EEPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  M.  M.  Osborne  (statement  and  brief),  representing  the  United  Peanut 
Association,  Suffolk,  Va. 

FAVORING  LOWER  DUTIES  : 

Mr.  John  B.  Gordon,  representing  the  Bureau  of  Raw  Materials  (users  of 
oils,  etc.).  . 


DIGEST  OF   TARIFF   HEARINGS,  H.   R.   1456.  85 

Hearings:  Pages  1249-1260. 

Witness :  Mr.  M.  M.  Osborne,  representing  the  United  Peanut  As- 
sociation. 

Costs  and  selling  prices. — The  emergency  tariff  bill  has  increased 
the  price  of  peanut  oil  to  7^  to  8  cents  per  pound,  an  increase  of  from 
1  to  1£  cents.  Mills  are  now  paying  farmers  about  $60  a  ton  for  pea- 
nuts for  crushing. 

Size  of  industry. — A  total  of  1,200,000  acres  of  land  is  devoted  to 
the  growing  of  peanuts.  At  $70  per  acre,  this  represents  a  land 
value  of  $88,362,000.  The  number  of  persons  employed  in  mills,  in 
shelling,  cleaning,  and  pressing,  is  10,500,  and  the  value  of  equip- 
ment of  peanut  mills  (crushing  machinery,  etc.)  amounts  to  $11,- 
500,000. 

Rates  suggested. — A  duty  of  5  cents  per  pound  on  crude  peanut 
oil  and  6  cents  on  the  refined,  and  inasmuch  as  cottonseed  oil  and 
other  vegetable  oils,  such  as  soya-bean  oil,  come  in  competition  with 
peanut  oil,  the  same  duties  on  those  products. 

Remarks. — Tables  submitted  show  production,  imports,  and  ex- 
ports of  peanut  oil,  and  capital  invested  in  the  various  branches  of 
the  industry. 

NOTE. — See  also  pages  1161-1174,  testimony  of  Mr.  W.  M.  Hutchinson. 

Hearings :  Pages  1239-1249. 

Witness:  Mr.  J.  B.  Gordon,  representing  the  Bureau  of  Raw 
Materials. 

Costs  and  selling  prices. — Cost  of  crushing  peanuts  is  between  6 
and  7  per  cent  of  the  total  cost  of  oil,  of  which  75  to  80  gallons  are 
obtained  from  a  ton  of  peanuts.  A  table  submitted  shows  cost  of 
transporting  oriental  peanut  oil  from  Tsing  Tau,  China,  to  the 
Cincinnati  district,  as  $2.46  per  100  pounds,  as  against  31  cents  for 
transportation  of  domestic  oil  from  southern  points  to  the  same  dis- 
trict. The  price  of  domestic  peanut  oil,  f.  o.  b.  mills,  decreased  from 
7.34  cents  per  pound  in  January,  1921,  to  5.62  cents  in  April  and  rose 
to  6.65  cents  per  pound  in  July  of  that  year.  During  the  same- 
period,  prices  of  oriental  peanut  oil,  c.  i.  f.  Seattle,  decreased  from 
7.92  per  pound  in  January  to  6.48  in  April  and  then  rose  to  7.90 
cents  per  pound  in  June  and  July. 

Rates  suggested. — Opposes  duty  on  peanut  oil;  requests  at  least  a 
reduction  of  duty  from  6  to  3  cents  per  gallon  or  40  cents  per  100 
pounds. 

Remarks. — The  domestic  production  of  peanuts  increased  simul- 
taneously with  prices  of  both  grades  of  peanuts,  a  matter  of  100  per 
cent,  showing  that  importations  of  foreign  peanut  oil  had  no  inhibi- 
tive  effect  upon  the  domestic  peanut-oil  business.  The  bulk  of  the 
domestic  crop  was  sold  to  the  nut  trade  during  the  war.  The  dif- 
ferential between  peanut  and  cottonseed  oils  is  rarely  more  than 
one-eighth  or  one-fourth  cent  per  pound. 

NOTE. — see  also  pages  1161-1172,  testimony  of  Mr.  W.  M.  Hutchinson. 

PARAGRAPH  50. — RAPESEED  OIL. 

WITNESS. 
FAVOEING  LOWER  DUTIES  : 

The  Vacuum  Oil  Co.,  61  Broadway,  New  York  City.    (Brief;  no  appearance 
at  hearings.) 

77134—22 7 


86  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Size  of  industry. — The  annual  domestic  consumption  of  rapesqed 
oil  is  about  22,000,000  pounds,  of  which  only  137,000  pounds,  or  from 
|  to  1  per  cent,  is  produced  in  the  United  States.  This  is  of  inferior 
quality,  unsuitable  for  lubricating  oils.  The  Vacuum  Oil  Co.  uses 
from  one-third  to  one-half  of  all  rapeseed  oil  used  in  the  United 
States  as  a  raw  material  in  compounding  lubricating  oils. 

Rates  suggested. — Not  to  exceed  6  cents  per  gallon. 

Remarks. — The  proposed  duty  of  1£  cents  per  pound  represents 
111  to  114  cents  per  gallon,  or  an  increase  of  87  to  90  per  cent  over 
the  act  of  1913.  Under  the  low  rates  of  the  latter  act,  both  imports 
and  revenue  increased  as  compared  with  those  under  the  Payne- 
Aldrich  Act. 

PARAGRAPH  51. — ALJZARIN  ASSISTANT. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frank  C.  Marsh   (by  letter),  representing  the  Baker  Castor  Oil  Co., 

New  York  City. 
The 'Providence  Drysalters  Co.,  Providence,  R.  I.     (Brief.) 

REQUESTING  RECLASSIFICATION  : 

Mr.  C.  P.  Gulick  (statement  and  brief),  representing  the  National  Oil  Prod- 
ucts Co.  and  others ;  address,  Newark,  N.  J. 

Hearings :  Page  1260. 

Witness :  Mr.  F.  C.  Marsh,  representing  the  Baker  Castor  Oil  Co. 

Rates  suggested. — That  the,  duty  on  alizarin  assistant  be  increased 
from  25  to  50  per  cent  ad  valorem. 

Remarks. — This  duty  is  requested  in  order  to  harmonize  with  the 
duty  on  castor  oil.  The  usual  grades  of  alizarin  assistant  imported 
contain  from  50  to  75  per  cent  of  castor  oil,  which  is  proposed  to  be 
made  dutiable  at  4£  cents  per  pound,  equivalent  to  a  protection  of 
33£  per  cent  on  the  present  ratio  of  the  castor  oil  abroad,  as  against 
a  duty  of  25  per  cent  proposed  on  the  finished  product — alizarin 
assistant. 

Witness:  The  Providence  Drysalters  Co.,  Providence,  R.  I. 
(Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Fifty  per  cent  ad  valorem  on  sulphonated  castor 
oils  containing  50  per  cent  of  castor  oil ;  75  per  cent  ad  valorem  on 
sulphonated  oils  containing  more  than  50  per  cent  of  castor  oil. 

Remarks. — The  above  rate  on  sulphonated  oils  is  desired  to  equalize 
the  duty  on  the  castor  oil  contained  therein  with  the  proposed  4|  cent 
per  pound  duty  on  raw  castor  oil,  and  thus  enable  manufacturers 
to  compete  with  imported  sulphonated  oils  made  from  duty-free 
castor  oil. 

Hearings :  Pages  1151-1161. 

Witness :  Mr.  C.  P.  Gulick,  representing  the  National  Oil  Products 
Co.  and  others. 

Rates  suggested. — The  witness  calls  attention  to  the  discrepancy 
between  the  duty  of  25  per  cent  on  alizarin  assistant  and  4J  cents  per 
pound  on  raw  castor  oil.  Quoting  market  values  for  the  past  10  or  15 
years,  with  the  exception  of  a  short  interval  during  the  war,  the  nor- 
mal value  of  castor  oil  was  shown  to  be  about  9  cents  per  pound,  so  that 


DIGEST  OF   TARIFF   HEARINGS,  H.   R.   7456.  87 

4J  cents  per  pound  is  equivalent  to  50  per  cent  of  its  value.  If  the 
tariff  on  castor  oil  (par.  50)  were  proportionate  to  the  duty  on  castor 
beans,  the  25  per  cent  ad  valorem  now  applied  to  sulphonated  castor 
oil  (alizarin  assistant)  would  be  ample,  because  the  duty  on  castor 
oil  would  then  not  be  more  than  1J  or  2  cents  per  pound. 

PARAGRAPH  54. — LEMON,  ORANGE,  LIME,  AND  GRAPEFRUIT  OILS. 

(See  also  par.  1,  p.  40.) 
WITNESSES. 

FAVORING  LOWEB  DUTIES  : 

Ungerer  &  Co.,  New  York.     (Brief.) 
Foote  &  Jenks.  Jackson,  Mich.     (Brief.) 

The  Flavoring  Extract  Manufacturers  of  the  United  States,  Baltimore,  Md. 
(Brief.) 

Witness:  Ungerer  &  Co.,  New  York  City.  (Brief;  no  appearance 
at  hearings.) 

Remarks. — The  domestic  production  of  orange  and  lemon  oils  is 
imaginary ;  a  20  per  cent  duty  would  be  a  burdensome  imposition  on 
the  American  consumer.  Rather  protect  oils,  such  as  ylang-ylang, 
produced  in  quantity  in  the  United  States  and  its  dependencies 
against  foreign  competition. 

Witness :  Foote  &  Jenks,  Jackson,  Mich.  (Brief :  No  appearance  at 
hearings.) 

Rates  suggested. — Ten  per  cent  ad  valorem  on  all  citrus  oils,  and 
not  more  than  5  per  cent  additional  on  all  other  essential  or  dis- 
tilled oils  not  specially  provided  for. 

Remarks. — The  above  oils  all  fall  into  one  class  and  should  there- 
fore receive  uniform  tariff  treatment.  They  are  all  citrus  oils  needed 
in  the  country's  industries,  and  all,  of  necessity,  imported. 

Witness:  The  Flavoring  Extract  Manufacturers  of  the  United 
States,  Baltimore.  Md.  (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Not  more  than  10  per  cent  ad  valorem  on  all 
citrus  oils  (lemon,  orange,  lime,  grapefruit). 

Remarks. — These  articles  are  all  noncompetitive  with  American 
products  except,  to  a  limited  extent,  oil  of  lemon  and  oil  of  orange. 
The  extract  manufacturers  have  also  to  pay  an  internal  revenue 
tax  of  $2.20  per  gallon,  amounting  to  from  40  per  cent  to  90  per 
cent  by  volume  of  the  finished  product. 

PARAGRAPH  55. — COCAINE. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Dr.  Frederick  W.  Russe,  representing  the  Powers-Weightman-Rosengarten 
Co.  and  the  Mallinckrodt  Chemical  Works,  Philadelphia,  Pa. 

Hearings :  Pages  835-838. 

Rates  suggested. — That  the  internal  tax  be  eliminated  or  the  duty 
on  cocaine  increased  from  $2  to  $3.50  per  pound. 

Remarks. — Under  the  present  adjustment  of  rates  between  coca 
leaves,  the  raw  material,  and  cocaine  extracted  therefrom,  the  rate  is 


88  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

higher  on  the  raw  material  than  on  the  finished  product.  It  requires 
10  pounds  of  coca  leaves  to  make  1  ounce  of  cocaine ;  the  duty  at  10 
cents  per  pound  on  10  pounds  of  coca  leaves  amounts  to  $1,  while  the 
internal-revenue  tax  of  1  cent  per  ounce  on  10  pounds  of  imported 
coca  leaves  amounts  to  $1.60,  making  a  total  duty  of  $2.60;  per  ounce 
of  cocaine  which  can  be  obtained.  No  coca  leaves  are  grown  in  the 
United  States. 

PARAGRAPH  56. — SAFROL. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  John  F.  Queeny,  representing  the  Monsanto  Chemical  Works,  St.  Louis, 
Mo. 

Hearings:  Pages  885-901. 

Rates  suggested. — Safrol  to  be  placed  on  the  free  list,  as  it  is  the 
raw  material  required  in  the  manufacture  of  heliotropine,  largely 
used  by  perfumers. 

PARAGRAPH  56. — PERFUME  MATERIAL. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

Ungerer  &  Co.,  New  York  City.  (Brief;  no  appearance  at  hearings.) 
Remarks. — While  the  duties  in  paragraph  57,  on  finished  perfumes, 
remain  the  same,  the  duties  in  paragraph  56  on  unmixed  perfume 
materials  have  been  raised  from  20  per  cent  to  35  per  cent  ad  valorem, 
and  on  mixed  perfume  materials  from  20  per  cent  to  40  cents  per 
pound  and  40  per  cent  ad  valorem ;  finished  perfumes  in  paragraph  57 
retain  the  same  rate  of  duty.  This  results  in  increasing  the  cost  of 
many  important  perfume  materials  without  giving  compensatory 
duty  on  competition  from  finished  perfumes.  Adjustment  of  this  in- 
consistency is  desired. 

PARAGRAPH  56. — ARTIFICIAL  OIL  OF  MUSTARD. 
WITNESS. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Central  Specialty  Co.,  Kansas  City,  Mo.      (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — When  we  began  to  manufacture  we  sold 
the  product  at  $26  per  pound ;  the  price  on  the  market  to-day  is  $4  to 
$4.25  per  pound. 

Size  of  the  industry. — Our  output  is  150  pounds  per  day  and  we  can 
increase  this  50  per  cent  if  occasion  require.  We  have  now  a  reserve 
supply  of  3,500  pounds.  The  annual  consumption  in  the  United 
States  is  less  than  20,000  pounds. 

Rates  suggested. — That  a  provision  be  inserted  in  paragraph  56, 
covering  artificial  oil  of  mustard,  chemically  known  as  "  allylisothio- 
cyanate,"  and  other  compounds  of  allyl  at  a  duty  of  $3  per  pound. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  89 

PARAGRAPH  59. — PARIS  GREEN. 

WITNESS,  AND  INTERESTS  BEPBESENTED. 

REQUESTING  RECXASSIFICATION  : 

Mr.  A.  S.  Somers,  representing  dry-color  manufacturers ;  address  100  Wil- 
liam Street,  New  York. 

Hearings:  Pages  1011-1019. 

Rates  suggested. — The  discrepancy  between  the  rate  of  25  per  cent 
on  arsenic  (par.  1)  and  15  per  cent  on  Paris  green  should  be  adjusted. 

ttetnarks. — Mr.  Somers  stated  before  the  Ways  and  Means  Com- 
mittee that  15  per  cent  (American  valuation)  on  Paris  green  would 
be  satisfactory,  but  this  was  predicated  on  the  theory  that  arsenic, 
its  chief  component  material,  would  remain  on  the  free  list.  (About 
75  per  cent  of  arsenic  in  Paris  green.) 

PARAGRAPH  60. — PHOSPHORUS. 

WITNESS,  AND  INTEBEST  BEPBESENTED. 

FAVOBING  PROPOSED  OB  HIGHEB  DUTIES  :  • 

Mr.  Charles  W.  Asbury,  representing  the  American  Phosphorus  Co.,  Phila- 
delphia, Pa. 

Hearings :  Pages  1283-1286. 

Costs  and  selling  prices. — The  firm's  average  cost  of  production  is 
38  cents  per  pound.  Yellow  phosphorus  costs  about  31  cents  and  the 
red  about  40  cents  per  pound;  sesquisulphide  of  phosphorus  costs 
about  35  cents  per  pound. 

Size  of  industry. — The  American  consumption  in  peace  time  is  a 
little  more  than  1,000,000  pounds  a  year.  The  firm  makes  about 
400,000  pounds  when  running,  but  the  plant  has  been  closed  down 
entirely  since  November,  1920. 

Rates  suggested. — The  duty  should  be  not  less  than  15  cents  per 
pound. 

PARAGRAPHS  60  AND  75. — PHOSPHORUS  AND  CHLORATE  or  POTASH. 

WITNESS,  AND  INTEBEST  BEPBESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  W.  A.  Becker,  representing  the  Diamond  Match  Co.,  New  York  City. 

Hearings :  Pages  1280-1283. 

Costs  and  selling  prices. — The  firm  has  found  that  phosphorus  can 
be  made  for  20  cents  a  pound.  It  "  is  probably  selling  as  high  as  30 
to  35  cents  a  pound." 

Rates  suggested. — That  duty  on  phosphorus  be  cut  down  from 
10  to  at  most  5  cents  per  pound  and  that  the  duty  on  chlorate  of  pot- 
ash be  reduced.  Reason:  To  assist  domestic  match  manufacturers 
in  meeting  the  competition  of  foreign  matches. 

PARAGRAPH  62. — ARTISTS'  COLORS. 

WITNESSES. 

FAVORING  PROPOSED  OR  HIGHEB  DUTIES  : 

The  Devoe  &  Reynolds  Co.,  New  York  City. 
The  Milton  Bradley  Co.,  Springfield,  Mass. 
The  Kroma  Color  Co.,  Sandusky,  Ohio. 
(Joint  brief;  no  appearance  at  hearings.) 


90  DIGEST  OF  TARIFF   HEARINGS,   H.  R.   7456. 

Costs  and  selling  prices. — Imported  colors  are  now  selling  for  less 
than  the  American  manufacturer  has  to  pay  for  empty  boxes  and 
tubes. 

Size  of  industry. — Capital  directly  employed  about  $1,000,000;  in- 
directly, several  millions.  Number  of  employees  affected,  directly, 
500  to  700;  indirectly,  1,500  to  2,000.  Prior  to  the  war,  Germany, 
England,  and  France  had  a  monopoly  on  artists'  color  sales  in  this 
country.  The  domestic  industry  has  since  been  developed  and  should 
be  protected. 

Rates  suggested. — Sixty  per  cent  ad  valorem. 

PARAGRAPH  64. — BARYTES  AND  BARIUM. 

(See  also  par.  11,  p.  51.) 

WITNESS,   AND   INTEREST   EEPEESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Hon.   M.   E.    Rhodes,   Congressman   from   Missouri,    representing  barytes 
miners  of  Missouri. 

FAVORING  LOWER  DUTIES  : 

L.  A.  Salomon  &  Bro.,  New  York  City.     (Brief.) 

Hearings :  Pages  874-882. 

Witness:  Hon.  M.  E.  Ehodes. 

Costs  and  selling  prices. — The  cost  of  producing  this  ore  and  load- 
ing it  on  the  car  runs  from  $8  to  $11;  adding  freight  of  from  $8  to 
$10  necessitates  a  price  of  from  $20  to  $21  per  ton  at  the  Atlantic 
seaboard  market.  The  German  importer  i»  selling  to-day  for  $9  or 
less  per  ton. 

Size  of  industry. — The  American  production  of  crude  ore,  prior  to 
the  war,  was  from  30,000  to  89.000  tons  annually,  with  an  annual  im- 
portation of  from  10,000  to  35,000  tons. 

Tons. 

1916,  domestic  production 221,952 

1917,  domestic  production 207,  888 

1918,  domestic  production 155,  368 

Rates  suggested. — A  specific  duty  of  one-half  cent  per  pound  on 
barytes  ore,  instead  of  $4  per  ton,  and  three-fourths  cent  per  pound 
on  manufactured  or  ground  barytes,  instead  of  $7.50  per  ton.  Blanc 
fixe  should  be  transferred  from  paragraph  64  to  paragraph  11  at  a 
duty  of  2  cents  per  pound,  and  lithopone  from  paragraph  74  to  para- 
graph 11  at  a  duty  of  2-|  cents  per  pound.  These  rates  are  requested 
in  order  to  enable  producers  to  compete  with  German  importers. 

Witness:  L.  A.  Salomon  &  Bro.,  New  York  City.  (Brief;  no  ap- 
pearance at  hearings.) 

Rates  suggested. — Crude  barytes,  $2.50  per  ton;  manufactured  or 
powdered  barytes,  $5  per  ton. 

Remarks. — Imports  of  German  barytes  have  not  been  large.  The 
production  of  domestic  barytes  has  been  increasing  and  the  indus- 
try is  able  to  take  care  of  itself,  especially  since  the  opening  of 
mines  in  the  Southern  States,  nearer  the  consuming  market. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  91 

PARAGRAPH  66. — BONE  BLACK,  DECOLORIZING  AND  DEODORIZING  CHARS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   John   Bernard   Kreider,   representing   the   Delaware   River   Chemical 

Works.     (Brief.) 
The  Darco  Corporation,  Wilmington,  Del.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.   Charles  B.  Grimes    (statement  and  brief),  representing  Pomeroy  & 
Fisher,  New  York  City. 

Hearings :  Pages  1288,  1289. 

Witness :  Mr.  J.  B.  Kreider,  representing  the  Delaware  River 
Chemical  Works. 

Rates  suggested. — In  addition  to  the  rate  of  20  per  cent  ad  valorem 
provided  in  H.  R.  7456,  it  is  urged  that  a  remedy  be  devised  and  ap- 
plied to  prevent  the  abnormally  low  rates  of  international  exchange, 
although  if  the  rate  be  based  on  American  valuation  this  exchange 
difference  would  be  appreciably  offset. 

Remarks. — Bone  black  and  bone  char,  used  in  refining  cane  sugar, 
are  found  to  add  only  an  infinitesimal  expense  to  the  refining  cost; 
that  is  to  say,  nineteen  thousandths  of  1  cent  per  pound  of  refined 
sugar. 

Witness:  The  Darco  Corporation,  Wilmington,  Del.  (Brief;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — Imported  decolorizing  carbons  are  now 
being  sold  at  $600  to  $800  per  ton,  and  bone  black  and  bone  char  at 
about  $200  per  ton. 

S-ize  of  industry. — This  concern  has  recently  spent  about  $300,000 
in  development  work  and  contemplates  the  expenditure  of  $1,000,000 
on  a  new  plant. 

Rates  suggested. — A  special  paragraph  placing  a  duty  of  5  cents 
per  pound  on  decolorizing,  refining,  and  gas  absorbing  carbons. 

Hearings :  Pages  1290-1295. 

Witness :  Mr.  C.  B.  Grimes,  representing  Pomeroy  &  Fisher. 

Costs  and  selling  prices. — While  the  market  is  now  6  cents,  quota- 
tions from  abroad  indicate  that,  with  the  20  per  cent. proposed,  it 
would  cost  from  $155  to  $160  to  land  a  ton  of  material,  against  the 
English  price  of  $120.  The  firm  is  now  selling  around  $75  a  ton. 

At  the  end  of  the  war  domestic  prices  were  14  cents  a  pound  or  $280 
a  ton. 

Rates  suggested. — Bone  black  or  bone  char,  used  for  decolorizing 
purposes,  to  be  put  on  the  free  list.  It  is  now  dutiable  at  20  per  cent 
under  paragraph  66. 

PARAGRAPH  68. — LAMPBLACK. 

WITNESS. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Wilckes-Martin-Wilckes  Co.,  New  York  City.     (Brief;  no  appearance 
at  hearings.) 

Costs  and  selling  prices. — German  lampblack  is  now  being  sold 
in  New  York  for  2£  cents  per  pound,  including  container. 


92  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Rates  suggested. — Sixty  per  cent  ad  valorem. 

Remarks. — Cheap  German  imports  make  it  absolutely  impossible 
to  manufacture  lampblack  at  a  profit. 

PARAGRAPH  70. — IRON  OXIDE  PIGMENTS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  C.  K.  Williams,  representing  C.  K.  Williams  &  Co.,  Easton,  Pa. 
FAVORING  LOWER  DUTIES  : 

Reichard-Coulston  (Inc.),  New  York  City.     (Brief.) 

Hearings :  Pages  1286-1288. 

Witness:  Mr.  C.  K.  Williams. 

Costs  and  selling  prices. — Umbers  and  siennas  cost  around  three- 
fourths  of  1  cent  a  pound  and  the  domestic  labor  cost  is  three  times 
that  in  Italy. 

Rates  suggested. — Oxide  of  iron,  a  pigment,  is  under  paragraph  70. 
Would  have  it  transferred  from  paragraph  70  to  paragraph  63  or 
change  the  rate  from  20  to  25  per  cent  under  paragraph  70.  Would 
reduce  rate  on  "  ochers,  siennas,  and  umbers,  crude  or  not  ground," 
from  one-fourth  of  1  cent  to  one-eighth  of  1  cent  per  pound,  so  as  to 
reestablish  a  differential  of  one-fourth  of  1  cent  between  the  manu- 
factured and  the  crude. 

Witness:  Reichard-Coulston  (Inc.),  New  York  City.  (Brief; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — Domestic  umber  sells  at  |  to  1  cent  per 
pound  cheaper  than  the  imported  material ,  and  domestic  sienna 
sells  at  3  to  10  cents  cheaper. 

Rates  suggested. — Crude  umbers  and  siennas,  free. 

Remarks. — As  the  production  of  these  articles  in  the  United 
States  is  small,  and  the  quality  of  an  inferior  character,  there  is  no 
competition  with  imported  goods.  Free  crude  materials  are  desired 
to  give  the  American  crusher  an  opportunity  to  compete  against 
the  European  crusher.  The  Italians  at  present  bring  in  about  90 
per  cent  of  the  imported  powdered  umber. 

PARAGRAPHS  74  AND  88 ;  ALSO  PARAGRAPHS  390  AND  391  OF  SCHEDULE 
3. — ZINC  OXIDE. 

(See  also  par.  390,  p.  242.) 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Stephen  S.  Tuthill,  secretary,  representing  the  American  Zinc  Institute, 
embracing  95  per  cent  of  the  United  States  zinc  industry';  address,  New 
York  City. 

Hearings :  Pages  1295-1297. 

Costs  and  selling  prices. — The  process  and  cost  of  making  zinc 
oxide  are  the  same  as  in  the  case  of  slab  zinc. 

Rates  suggested. — Rates  on  zinc  compounds  to  be  higher  than  the 
rates  on  zinc  and  zinc  oxide,  and  zinc  oxide  to  have  the  same  duty 
as  slab  zinc,  at  least  2  cents  a  pound.  The  witness  pointed  out  that 
the  zinc  schedule  is  not  carried  out  on  the  same  basis  as  the  lead 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  93 

schedule ;  in  the  latter,  lead  compounds  are  dutiable  at  a  higher  rate 
on  the  manufactured  products  than  on  the  ore  itself. 

Remarks, — It  was  stated  that  oxide  of  zinc  had  been  previously 
classified  under  Schedule  A,  but  that  it  would  properly  come  under 
Schedule  C. 

PARAGRAPH  75. — POTASSIUM  CHLORATE. 

(See  also  par.  60,  p.  89.) 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Frank  Kidde,  representing  the  Monmouth  Chemical  Co.,  Paterson,  N.  J. 

Hearings:  Pages  1297-1311. 

Costs  and  selling  pri.ces. — The  price  of  the  German  product  is 
about  7  cents  per  pound,  as  against  8  cents  for  the  domestic  product. 

Size  of  industry. — Forty  employees ;  producing  10  per  cent  of  the 
total  domestic  output.  There  are  two  other  domestic  manufacturers — 
the  North  American  Chemical  Co.,  at  Bay  City,  Mich.,  and  the 
National  Electrolytic  Co.,  at  Niagara  Falls,  N.  Y. 

Rates  suggested — The  duty  should  not  be  more  than  1  cent  per 
pound. 

Remarks. — The  witness  stated  that,  prior  to  the  war.  an  inter- 
national agreement  existed  in  regard  to  the  sale  of  potassium  chlo- 
rate ;  also  that  the  other  two  American  manufacturers  sell  to  a  com- 
mon agency,  J.  L.  and  D.  S.  Riker,  of  New  York  City,  and'  that  the 
United  Alkali  Co.,  of  England,  owns  the  North  American  Chemical 
Co. 

PARAGRAPH  75 — CAUSTIC  POTASH. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Niagara  Alkali  Co.,  Niagara  Falls,  N.  Y.     (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — Present  quotations  for  German  caustic 
potash  are  5  cents  per  pound  and  for  domestic  12  cents  per  pound. 

Rates  suggested. — Five  cents  per  pound  plus  twice  the  duty  on 
muriate  of  potash. 

Remarks. — It  requires  two  pounds  of  muriate  to  make  one  pound 
of  caustic  potash.  The  rate  on  caustic  potash,  proposed  in  H.  R. 
7456,  is  not  enough  to  compensate  for  the  duty  on  muriate  of  potash. 
As  present  prices  show,  the  domestic  industry  can  not  continue  with- 
out increased  protection. 

PARAGRAPH  77. — SOAP. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  S.  W.  Eckman,  representing  B.  T.  Babbitt. 

Hearings :  Pages  1272-1277. 

Rates  suggested — That  vegetable  oils  be  put  on  the  free  list.  If 
this  recommendation  be  adopted,  would  suggest  that  the  duty  on 


94  DIGEST   OF   TARIFF    HEARINGS,   H.  R.   7456. 

laundry  soap,  soap  powder,  and  other  kinds  of  soap,  n.  s.  p.  f.,  be 
reduced  to  5  per  cent,  the  rate  provided  in  the  act  of  1913. 

PARAGRAPH  78. — SALT. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Edward  W.  Brown,  representing  the  Sterling  Salt  Co.,  New  York  City. 
Mr.  W.  T.  Chisholm,  representing  the  International  Salt  Co.,  Scranton,  Pa. 
Mr.  F.  W.  Boyer,  representing  the  Wadsworth  Salt  Co.,  Wadsworth,  Ohio. 

FAVORING  LOWER  DUTIES  : 

Charles  Kurz  &  Co.  (Inc.),  Philadelphia,  Pa.     (Brief.) 

Hearings :  Pages  1324-1330. 

Witness :  Mr.  E.  W.  Brown,  representing  the  Sterling  Salt  Co. 

Costs  and  selling  prices. — The  wages  paid  in  the  company's  salt 
mines  are  40  to  50  cents  per  hour  (average  underground  labor  $5 
a  day),  against  75  cents  a  day  in  Germany.  Five  hundred  men  are 
employed  in  this  domestic  industry.  Rock  salt  costs  approximately 
$3  a  ton  to  produce,  and  an  American  salt  mine  costs  about  $2,000,000 
to  equip. 

German  rock  salt  is  offered  at  $6  a  ton  at  Atlantic  ports,  one  quota- 
tion being  made  at  $5.40.  The  American  selling  price  in  single  car- 
load lots  is  about  $11  a  ton.  Large  buyers  on  contract  pay  about  $3 
a  ton  less,  or  $8  a  ton.  Salt  from  Avery  Island  via  New  Orleans  to 
New  York  costs  $6.40  a  ton  in  New  York. 

Rates  suggested. — Twenty-five  cents  per  100  pounds  is  necessary,  or 
would  suggest  a  specific  rate  of  15  'cents  per  100  pounds  plus  an  ad 
valorem  of  20  per  cent,  American  valuation  basis. 

Hearings :  Pages  1311-1324. 

Witness :  Mr.  W.  T.  Chisholm,  representing  the  International  Salt 
Co.  and  salt  producers  of  the  United  States. 

Costs  and  selling  prices. — Foreign  rock  salt,  nonedible,  is  offered 
in  bulk  at  Atlantic  ports  at  29  cents  per  100  pounds;  in  100-pound 
bags  at  50  cents. 

Rates  suggested. — Twenty-five  cents  per  100  pounds,  with  a  pro- 
viso that  the  coverings,  i.  e.,  the  bag,  sack,  barrel,  package,  or  other 
container,  pay  the  same  rate  of  duty  as  if  imported  separately;  as 
an  alternative,  an  import  duty  of  25  cents  per  100  pounds  on  coarse 
or  rock  salt,  coming  in  bulk  or  in  large  containers,  in  100  or  200 
pound  bags,  and  35  cents  per  100  pounds  on  fine,  ground,  pulverized 
or  refined  salt  in  similar  containers. 

Hearings:  Pages  1330-1332. 

Witness :  Mr.  F.  W.  Boyer,  representing  the  Wadsworth  Salt  Co. 

Costs  and  selling  prices. — Including  freight,  etc.,  $16.60  per  ton. 
German  salt,  delivered  at  the  same  point,  $8.15  per  ton — a  difference 
of  $8.45  per  ton.  A  German  salt  maker  has  proposed  to  an  American 
salt  maker  to  deliver  his  product  at  the  ports  along  the  Atlantic 
coast,  the  latter  to  designate  the  names  of  the  ports,  at  practically 
the  cost  of  transportation  from  the  central  territory  to  those  ports. 
Letter  produced. 

Rates  suggested. — A  duty  so  high  that  this  arrangement  could  not 
be  carried  out. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  95 

Witness:  Charles  Kurz  &  Co.  (Inc.),  Philadelphia,  Pa.  (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — Free. 

Remarks. — It  is  practically  impossible  to  find  a  domestic  market 
for  imported  salt  outside  of  the  Atlantic  seaports.  With  the  risk  of 
exchange  and  ocean  freight  fluctuations,  and  the  necessity  for  the 
importer  to  have  storage  facilities  in  this  country,  foreign  salt  can 
not  come  into  competition  with  the  domestic  product  where  an  in- 
terior freight  haul  is  necessary. 

PARAGRAPH  78 — SODIUM  BICARBONATE. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

The  Jacques  Manufacturing  Co.,  Chicago,  111.     (Brief;  no  appearance  at 
hearings. ) 

Costs  and  selling  prices. — The  prewar  selling  price  was  less  than 
1  cent  per  pound. 

Size  of  industry. — In  1920  the  domestic  production  was  188,906 
tons,  of  which  10.321  tons  were  exported.  The  average  imports  for 
the  last  10  years  have  been  only  42  tons.  The  price  has  doubled 
since  1916. 

Rates  suggested. — One-fourth  of  1  cent  per  pound. 

Remarks. — Soda  ash,  made  by  heating  bicarbonate  of  soda,  is  to 
be  dutiable  under  H.  R.  7456  at  only  one-foiirth  cent  per  pound,  and 
its  price  is  about  the  same  as  bicarbonate.  Caustic  soda,  made  from 
soda  ash,  is  to  be  dutiable  at  one-half  cent  per  pound,  and  its  value 
is  about  double  that  of  bicarbonate.  It  is  obvious,  therefore,  that 
the  duty  on  bicarbonate  is  disproportionately  high,  and  should  be 
lowered.  As  the  low  rate  of  the  act  of  1913  encouraged  scarcely  any 
imports  of  bicarbonate,  a  continuation  of  these  rates  is  not  likely  to 
bring  about  any  considerable  increase. 

PARAGRAPH  78. — NITRITE  OF  SODA. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Hon.  Wesley  L.  Jones,  Senator  from  Washington. 

Hearings:  Pages  5176-5178. 

Costs  and  selling  prices. — The  prewar  annual  consumption  was 
about  3,000  tons,  valued  at  $120  per  ton.  The  demand  increased  rap- 
idly during  the  war  and  present  annual  needs  are  estimated  at  about 
6,000  tons.  The  maximum  price  reached  was  60  cents  per  pound. 
At  present,  German  sodium  nitrite  is  selling  in  New  York  for  6 
cents  per  pound  spot. 

Rates  suggested. — Five  cents  per  pound. 

Remarks. — Unless  adequate  protection  is  afforded,  the  American 
Nitrogen  Products  Co.,  of  Seattle,  Wash.,  operating  a  nitrogen  fixa- 
tion plant,  will  not  be^  able  to  continue,  nor  will  it  be  able  to  expand 
the  industry  by  utilizing  cheap  western  electric  power  in  the  manu- 
facture of  other  nitrogen  fixation  products. 


96  DIGEST   OF   TARIFF   HEARINGS,  H.  R.   7456. 

PARAGRAPH  79. — HYDROSULPHITES  AND  SULPHOXYLATES. 

WITNESS.  * 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Rohm  &  Haas  Co.  (Inc.),  Philadelphia,  Pa.     (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — This  concern,  the  pioneer  manufacturer 
in  the  United  States  when  European  imports  were  cut  off,  has  re- 
duced its  selling  price  from  $1.50  to  40  cents  per  pound,  but  each  re- 
duction has  been  met  by  a  greater  one  on  the  imported  product. 

Kates  suggested. — Same  as  in  H.  R.  7456. 

Remarks. — These  products  are  essential  in  the  textile  industry,  and 
for  the  manufacture  of  salvarsan. 

(NOTE. — See  also  hearings  before  Ways  and  Means  Committee,  pp.  103-105.) 

PARAGRAPH  80. — WHEAT  STARCH. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  G.  J.  Jenks,  representing  the  Huron  Milling  Co.,  Harbor  Beach,  Mich. 

Hearings :  Pages  1334-1337. 

Costs  and  selling  prices. — During  the  war  the  Japanese  began  the 
manufacture  of  wheat  starch,  and  their  price  this  year  has  been  2£ 
cents  per  pound  below  the  domestic.  Susuki  &  Co.,  of  New  York, 
quoted  wheat  starch  at  $5.85  per  100  pounds;  the  company's  price 
at  that  time  was  $7.25  per  100,  and  the  cost,  roughly,  $8.75  per  100 
pounds. 

Rates  suggested. — A  duty  of  1£  cents  per  pound,  the  same  as  on 
potato  starch. 

PARAGRAPH  84. — THORIUM,  CERIUM  SALTS,  GAS  MANTLE  SCRAP. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Joseph  M.  Sherburne,  representing  Lindsay  Light  Co.,  Chicago,  111. 
Mr.  Sidney  Mason,  representing  the  Welsbach  Co.,  Gloucester  City,  N.  J. 
(Brief;  no  appearance  at  hearings.) 

Hearings :  Pages  1341-1344. 

Witness :  Mr.  Joseph  M.  Sherburne. 

Costs  and  selling  prices. — The  present  price  of  imported  thorium 
nitrate  is  $2.73  per  pound,  duty  paid,  f.  o.  b.  New  York,  and  the 
present  market  price  of  thorium  nitrate  made  in  the  United  States 
is  $3.75  per  pound.  This  represents  a  decrease  in  selling  price  during 
the  last  five  years  of  more  than  53  per  cent  and  an  increase  over  the 
importer's  1914  price,  which  was  $3.30  per  pound,  of  less  than  14 
per  cent. 

Rates  suggested. — Fifty  per  cent  ad  valorem  on  American  valua- 
tion. 

Witness :  Mr.  Sidney  Mason,  representing  the  Welsbach  Co. 
Costs  and  selling  prices. — The  price  of  thorium,  the  basic  material 
of  the  gas-mantle  industry,  is  $3.75  per  pound,  which  is  10  per  cent 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  97 

above  the  prewar  price  established  in  this  market  by  the  German 
trust.  The  German  price  is  $2  plus  the  25  per  cent  duty,  or  $2.50  duty 
paid,  New  York.  That  is  33^  per  cent  below  the  American  price. 
The  proposed  duty,  25  per  cent  on  American  valuation,  would  make 
a  duty  of  94  cents  and  raise  the  price  to  $2.94,  which  is  still  22  per 
cent  below  the  American  price. 

The  present  entry  price  of  German  thorium  is  equivalent  to  400 
marks  as  against  8  marks  prewar.  With  this  difference,  it  is  clear 
that  the  Germans  can  sell  in  the  American  market  below  their  present 
selling  price.  In  granting  45  per  cent,  owing  to  the  reduction  on 
free  sand  and  to  the  probable  reduction  on  other  material  costs,  the 
American  manufacturer  may  sell  at  $3.50  per  pound.  The  German 
product  would  then  enter  at  $3.575.  The  difference  between  the 
price  of  $3.50  and  the  present  German  price  of  $2.73  would  be  equiva- 
lent to  about  one-fourth  of  a  cent  on  each  gas  mantle. 

Size  of  industry. — There  are  three  manufacturers  of  thorium  in 
the  United  States.  One  factory  is  totally  closed,  one  is  cleaning  up, 
and  one  claims  to  be  working  on  a  25  per  cent  basis. 

Rates  suggested. — Forty-five  per  cent  ad  valorem. 

Remarks. — The  commercial  source  of  thorium  is  monazite  sand. 
The  latter  is  on  the  free  list,  but  under  the  act  of  1913  it  was  dutiable 
at  25  per  cent.  The  proposed  change  to  the  free  list  would  reduce  the 
manufacturing  cost  of  nitrate  of  thorium  9^  to  10  cents  per  pound, 
or  one-thirtieth  of  1  cent  of  the  cost  of  thorium  in  gas  mantles. 

PARAGRAPH  85. — TIN  CHLORIDES. 

In  a  letter  addressed  to  the  chairman  of  the  Senate  Committee  on 
Finance,  on  July  28,  1921,  the  Metal  &  Thermit  Corporation,  120 
Broadway,  New  York  City,  directs  attention  to  the  proposed  20  per 
cent  ad  valorem  duty  on  tin  chlorides.  As  large  manufacturers  of 
these  products,  the  company  regards  that  duty  as  insufficient  to  meet 
the  competition  of  foreign  manufacturers  and  believes  that  a  duty 
of  at  least  40  per  cent  is  necessary. 

Confining  present  observations  to  tetrachloride  of  tin,  as  typical 
of  conditions,  it  is  pointed  out  that  here,  as  abroad,  all  tin  chlorides 
are  produced  by  the  action  of  chlorine  gas  on  tin-plate  scrap  or 
clippings,  81  pounds  of  gas  being  required  to  produce  100  pounds 
of  tetrachloride.  The  present  cost  of  this  chlorine  gas  is  something 
over  4  cents  per  pound,  or  $3.25  for  81  pounds.  Adding  labor  costs, 
amounting  to  $4.37,  the  American  production  cost  of  100  pounds  of 
tetrachloride  of  tin  is  shown  to  be  $7.62. 

As  contrasted  with  these  figures,  it  is  stated  that  the  cost  of  the 
chlorine  gas  to  German  manufacturers  is  only  96  cents,  taking  the 
mark  at  1.3  cents.  Adding  labor  costs,  $1.06,  the  total  German  cost 
is  $2.02,  as  against  the  American  company's  $7.62,  cited  above.  In 
other  words,  German  manufacturers  can  produce  at  a  cost  of  at  least 
5|  cents  per  pound  cheaper  than  is  possible  here.  The  proposed  20 
per  cent  duty  would  amount  to  only  3.6  cents  per  pound,  so  that  a 
duty  of  40  per  cent  would  appear  to  be  necessary  if  adequate  pro- 
tection is  to  be  afforded. 

Stress  is  laid  upon  the  importance  of  tetrachloride  of  tin  in  peace 
and  in  war — in  the  former  case  in  silk  dyeing,  and  in  the  latter  for  the 
manufacture  of  poisonous  gases,  and  for  other  uses. 


98  DIGEST  OF   TARIFF   HEARINGS,  H.  R.  7456. 

In  a  further  letter,  dated  August  13,  1921.  the  company  states  that 
the  price  of  tin  and  chlorides  is  no  longer  50  to  100  per  cent  above 
prewar  prices,  as  stated  in  "  Tariff  Information  Surveys,"  but  is  now 
considerably  lower  than  prewar  rates.  Tin  is  now  selling  at  26  to  27 
cents  per  pound,  as  compared  with  40  to  45  cents — the  average  price 
for  a  number  of  years  before  the  war. 

PARAGRAPH  86. — TITANIUM  POTASSIUM  OXALATE. 

WITNESS. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Rohm  &  Haas  Co.  (Inc.),  Philadelphia,  Pa.     (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — The  price  of  this  article  was  reduced  by 
this  concern  from  $1.80  to  60  cents  per  pound  in  January,  1921.  The 
imported  material  is  being  offered  to  jobbers  at  25  cents,  and  to  users 
at  35  cents  per  pound. 

Kates  suggested. — Sixty  per  cent  ad  valorem?ior  10  cents  per  pound 
and  25  per  cent  ad  valorem. 

Remarks. — This  article  is  important  as  a  mordant  in  the  leather 
and  textile  industries.  The  protection  needed  is  obvious. 

(See  also  hearings  before  Ways  and  Means  Committee,  p.  106.) 

PARAGRAPH  88. — ZINC  CHLORIDE. 


FAVORING  LOWER  DUTIES  : 

The  Diamond  State  Fiber  Co.,  Bridgeport,  Pa.     (Brief;  no  appearance  at 
hearings. ) 

Costs  and  selling  prices. — The  price  of  zinc  and  hydrochloric  acid, 
the  raw  materials  used  in  the  manufacture  of  zinc  chloride,  has 
reached  pre-war  levels,  yet  domestic  manufacturers  of  zinc  chloride 
are  asking  8£  cents  per  pound  for  the  latter,  while  the  imported 
product  can  be  laid  down  at  the  company's  plant  for  7  cents  per 
pound,  duty  paid,  indicating  that  domestic  manufacturers  are  not 
justified  in  asking  for  additional  tariff  protection. 

SCHEDULE  2.— EARTHS,  EARTHENWARE,  AND  GLASSWARE. 
PARAGRAPH  201. — FIRE  BRICK. 

WITNESS. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

F.  T.  Crowe  &  Co.,  Seattle,  Wash.     (Brief;  no  appearance  at  hearings.) 

Kates  suggested. — A  specific  duty  on  fire  brick  is  requested  instead 
of  an  ad  valorem  rate.  Under  the  act  of  1909  the  duty  was  $1  per  ton 
on  the  standard  9-inch  brick,  weighing  approximately  7,000  pounds 
to  the  thousand.  The  protection  given  to  American  manufacturers 
would  be  $3.50.  On  a  specific  rate,  English,  Scotch,  and  Chinese 
brick  would  pay  the  same  duty  per  thousand  as  the  Canadian  brick, 
which  is  produced  at  much  higher  cost  on  account  of  the  wages  and 
fuel  cost  being  even  higher  than  in  this  country. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  99 

Remarks. — There  are  some  hardships  under  the  foreign  valuation 
plan,  owing  to  the  fact  that  prices  of  Canadian  brick  in  the  home 
market  are  considerably  higher  than  English  and  Scotch  prices  in 
the  United  Kingdom.  On  Canadian  brick  the  railroad  freight  rate 
from  the  plant  at  Clayburn,  British  Columbia,  only  10  miles  over 
the  border,  is  21£  cents  per  hundredweight  to  Tacoma  and  17  cents 
to  Seattle.  Ocean  freight  on  English  and  Scotch  brick  has  been  as 
low  as  20  shillings  per  long  ton. 

PARAGRAPH  202.— TIUES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OK  HIGHER  DUTIES: 

Mr.  D.  A.  Cable,  representing  United  States  Roofing  Tile  Co.,  Parkersburg, 

W.  Va. 

Mr.  F.  S.  Williamson,  representing  Williamson  &  Messinger,  Philadelphia, 
Pa. 

FAVORING  LOWER  DUTIES  : 

Mr.  W.  A.  Revis,  importer,  representing  importers  and  users  of  Adamantine 

tiles,  New  York. 
Mr.  Adolph  Grant,  representing  Adolph  Grant  &  Co.,  New  York. 

REQUESTING  RECLASSIFICATION  : 

The  United  States  Roofing  Tile  Co.,  the  Murray  Roofing  Tile  Co.     (Joint 
brief.) 

Hearings:  Pages  1352-1354. 

Witness :  Mr.  D.  A.  Cable,  representing  United  States  Roofing 
Tile  Co. 

Size  of  industry. — Quarry  tiles,  which  have  been  made  in  Europe 
for  many  years,  were  not  manufactured  in  the  United  States  to  any 
extent  before  the  war,  but  there  are  now  seven  small  plants  in  opera- 
tion. The  United  States  Roofing  Tile  Co.  is  the  only  one  engaged 
exclusively  in  the  production  of  these  tiles.  It  began  operations  in 
1914,  but  made  no  profits  until  1918.  In  the  fiscal  year  1920  importa- 
tions of  quarry  tiles  were  twice  the  value  of  all  other  imports  of  tiles. 

Rates  suggested. — Quarry  tiles,  red  or  brown  in  color,  5  cents  per 
square  foot,  but  not  less  than  25  per  cent  ad  valorem,  the  latter  being, 
under  American  valuation,  practically  equivalent  to  45  per  cent,  the 
rate  provided  under  the  Payne- Aldrich  Act.  The  witness  further 
requested  that  the  word  "  so-called  "  occurring  before  "  quarry  tile  n 
be  stricken  out.  These  rates  are  requested  because  the  industry  is  a 
new  one  in  the  United  States,  and  the  rates  proposed  will  act  as  a 
stabilizer  and  assist  the  new  plants  to  survive  competition. 

Hearings:  Pages  1345-1349. 

Witness:  Mr.  F.  S.  Williamson,  representing  Williamson  &  Mes- 
singer. 

Costs  and  selling  prices. — The  average  foreign  market  price  of  the 
cheapest  grade  of  red  unglazed  floor  tile,  known  as  Plastora,  is  IT 
cents  per  square  foot  in  England.  The  nearest  comparable  tile  of 
American  manufacture  is  a  much  better  tile,  valued  at  about  40  cents 
per  square  foot.  White  glazed  wall  tiles  are  divided  into  three  quali- 
ties, selling  in  the  United  States  for  50,  40,  and  25  cents  per  square 
foot,  respectively.  The  practice  of  marketing  inferior  German  tiles 
in  this  country  as  the  best  quality  product  should  be  stopped. 


100  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    1456.  t 

Size  of  industry. — The  domestic  industry  is  more  than  sufficient  to 
supply  all  demands.  Its  products  are  now  valued  at  from  $5,000,000 
to  $7,000,000,  while  imports  are  about  $100,000  per  annum.  Imports 
of  tile,  especially  white  glazed  wall  tile,  during  the  past  two  years 
were  due  to  the  fact  that  domestic  manufacturers  could  not  make  de- 
liveries and  contractors  were  forced  to  import  tile  at  any  price,  re- 
gardless of  quality.  Many  of  the  inferior  tiles  imported  are  now  in 
warehouses  and  can  not  be  sold. 

Rates  suggested, — The  witness  argued  that  the  proposed  duty  of  8 
cents  per  square  foot,  or  35  per  cent  of  the  40  cents  (the  price  of  the 
American  article),  is  prohibitive  when  applied  to  the  cheap  English 
tile  selling  abroad  for  17  cents  per  square  foot,  being  80  per  cent  of 
the  foreign  selling  value.  He  objected  for  this  reason  to  the  ad 
valorem  minimum  proposed,  pointing  out  that  it  is  out  of  proportion 
to  the  3  cents  per  square  foot  and  not  less  than  20  per  cent  ad  valorem 
assessed  on  far  better  quarry  tiles.  He  would  assess  the  rate*  of  4 
cents  per  square  foot  on  all  unglazed  tile,  with  no  limiting  ad  valorem 
value,  and  would  have  white  glazed  tiles  made  dutiable  at  a  rate  be- 
tween 5  and  8  cents  per  square  foot,  also  without  mention  of  an  ad 
valorem  equivalent.  This  stand  was  taken  by  the  witness  because 
American  manufacturers  can  and  do  supply  the  entire  consumption 
of  tiles  of  all  kinds. 

Hearings:  Page  1354. 

Witness:  Mr.  W.  A.  Revis,  importer,  representing  importers  and 
users  of  Adamantine  tiles. 

Costs  and  selling  prices. — The  red,  unglazed  tiles  known  as  Ada- 
mantine tiles  are  made  in  Wales  and  cost  at  Atlantic  seaboard  ports 
to-day  26£  cents  per  square  foot.  Comparable  domestic  tiles  sell  for 
44  cents. 

Rates  suggested. — All  reference  to  color  should  be  deleted  from 
that  part  of  paragraph  202  relating  to  quarry  tiles,  these  being  made 
in  blue,  buff,  and  gray,  as  well  as  in  red  and  brown.  Witness  states 
that  having  regard  to  the  selling  prices  outlined  under  "  Costs  and 
selling  prices"  the  duty  on  Adamantine  tiles  will  be  increased  from 
5  cents  (Underwood)  to  16f  cents,  or  to  225  per  cent.  This  would 
bring  their  cost  to  43|  cents  per  square  foot  and  prohibit  further  im- 
portations. 

Hearings :  Pages  1349-1351. 

Witness :  Mr.  Adolph  Grant,  representing  Adolph  Grant  &  Co. 

Costs  and  selling  prices. — There  are  three  grades  of  white  glazed 
wall  tiles,  selling  respectively  for  50,  40,  and  25  cents  per  square 
foot. 

Comparability. — American  manufacturers  produce  a  high-grade 
glazed  wall  tile  which  competes  directly  with  the  imported.  A  dull, 
egg-shell  glazed  tile  produced  in  England  is  not  produced,  in  the 
United  States.  An  excessive  duty  on  the  latter  product  protects  no 
American  industry,  but  handicaps  the  building  contractor  in  the 
United  States. 

Rates  suggested. — At  least  10  cents  per  square  foot  for  bright 
glazed  wall  tile  and  8  cents  per  square  foot  on  English  dull-glaze 
tile,  with  no  ad  valorem  minimum  or  maximum.  A  proviso  should 
be  added  to  the  effect  that  no  foreign  manufacturer  be  permitted  to 
bring  into  this  country  any  tile  at  a  lesser  price  than  the  best  price 


DIGEST  OF  TARIFF  HEARINGS,   H.   R.   7456.  101 

for  the  best  quality  of  goods  prevailing  in  his  own  country  at  the 
time  the  shipment  is  made.  This  would  obviate  the  possibility  of 
dumping  inferior  goods  in  this  market. 

Remarks. — The  testimony  of  Mr.  Williamson  is,  in  part,  the  sub- 
ject of  a  letter  addressed,  on  September  10,  1921,  to  the  chairman 
of  the  Senate  Committee  on  Finance,  in  which  Mr.  F.  W.  Walker, 
representing  the  Associated  Tile  Manufacturers,  offers  criticisms 
summarized  below: 

Mr.  Walker  asserts  that  if  the  Plastora  tile  was  imported  under 
the  specific  rates  of  the  Underwood  and  Payne-Aldrich  tariffs — 5 
cents  and  8  cents  per  square  foot,  respectively — it  was  incorrectly 
classified.  This  tile,  if  so  imported,  would  kill  the  manufacture  of 
similar  tile  in  the  United  States. 

As  regards  white  glazed  wall  tile,  much  poor  quality  German  tile 
was  offered  and  sold  in  the  United  States  at  very  low  prices  in  1920, 
but  this  was  a  dumping  transaction,  soon  found"  incapable  of  repeti- 
tion in  view  of  the  American  demand  for  very  much  better  quality. 
A  quality  is  now  being  offered  by  German  manufacturers  at  a  price 
which  bids  fair  to  command  the  market.  A  similar  condition  applies 
to  tile  exports  which,  including  Canada,  have  never  amounted  to 
$200,000.  It  seems  probable  that  Germany  will  soon  command  all 
export  markets  through  her  low  cost  of  manufacture. 

Referring  to  the  testimony  of  Mr.  Adolph  Grant,  Mr.  Walker 
classes  it  with  Mr.  Williamson's  as  "  ingeniously  made  for  the  pur- 
pose of  covering  up  facts  and  enabling  the  importation  of  certain 
tiles  for  their  use."  Every  class  or  kind  of  tile  mentioned  in  para- 
graph 202  is  manufactured  in  the  United  States.  Differences  in 
prices  of  white  glazed  tile  are  accounted  for  by  their  assortment  into 
three  grades  on  account  of  surface  blemishes,  one  grade  being  neces- 
sarily sold  below  cost  of  manufacture. 

Mr.  W.  A.  Revis's  statement  in  regard  to  "quarries"  evokes  the 
remark  that  these  are  now  used  the  same  as  tile  and  should  be  so 
classified.  The  inclusion  of  other  colors  than  red  or  brown  with 
quarries  would  lead  to  the  importation  of  tiles  under  quarry  classi- 
fication, within  which  the  Adamantine  tile  falls. 

The  testimony  of  Mr.  D.  A.  Cable  leads  to  the  explanation  that 
the  qualification  "so-called"  was  originally  used  to  prevent  con- 
fusion between  terms.  With  the  same  object,  Mr.  Walker  suggests 
the  need  of  proper  classification,  the  retention  of  the  words  "  red  or 
brown  in  color  "  and  the  reinstatement  of  the  words  "  £  inch  or  over 
in  thickness." 

The  letter  concludes  with  an  expression  of  approval  of  paragraph 
202.  although  the  measure  of  protection  from  German  tile,  made 
under  cheap  conditions,  is  not  as  the  tile  interests  would  like.  On 
the  other  hand,  while  regarding  Japanese  conditions  as  likely  to 
offer  a  very  serious  problem  at  no  late  date,  they  refrain  from  more 
than  that  allusion  at  this  time. 

Witness:  The  United  States  Roofing  Tile  Co.,  the  Murray  Roofing 
Tile  Co.  (Joint  brief;  no  appearance  at  hearings.) 

The  brief  asks  that  no  exception  be  made  of  pill  tiles,  quarries,  or 
quarry  tiles. 

Remarks. — It  is  argued  that  quarry  tiles  are  both  glazed  tiles  and 
vitrified  tiles  and  that  an  equal  amount  of  labor  is  needed  for  their 
77134—22 8 


102  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

production.  The  labor  engaged  in  manufacturing  quarry  tiles  is 
entitled  to  the  same  protection  as  that  used  in  the  manufacture  of 
unglazed  and  vitrified  tiles.  The  discrimination  originated  in  1908, 
when  practically  no  quarry  tiles  were  made  in  this  country,  has  been 
carried  into  subsequent  tariff  bills.  Quarry  tiles  are  made  in  various 
colors,  including  ivory,  gray,  and  red,  whereas  paragraph  202  places 
a  duty  on  red  and  brown,  only.  This  color  restriction  should  be 
eliminated. 

PARAGRAPH  203. — HYDRAULIC  CEMENT. 

WITNESSES,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DTTTIES  : 

Mr.  William  .T.  O'Brien,  representing  83  cement  manufacturers ;  address, 

Baltimore,  Md. 
Mr.  Hal  H.  Smith,  representing  the  Huron  Portland  Cement  Co. 

Hearings :  Pages  1354-1367. 

Witness:  Mr.  William  J.  O'Brien,  representing  83  cement  manu- 
facturers. 

Costs  and  selling  prices. — The  average  factory  price  of  cement  in 
the  year  1920  was  $2.02.  Cost  of  production  in  that  year  was  $2.019 
a  barrel,  which  includes  a  6  per  cent  charge  for  profit,  as  in  1920. 
The  price  to  the  consumer  sometimes  reached  $8  a  barrel  during 
the  war. 

Size  of  industry. — The  Portland  cement  industry  in  the  United 
States  has  115  plants  with  a  1920  production  of  100,302,000  barrels. 
Shipments  in  the  same  year  aggregated  96,329,000  barrels;  there 
was,  therefore,  an  overproduction  of  approximately  4.000,000  barrels. 
The  rated  capacity  of  the  plants  totals  about  149,000,000  barrels. 
The  capital  invested  is  substantially  $130,000,000,  and  the  industry 
employs  36,500  men  in  and  about  the  mills.  The  yearly  pay  roll 
amounts  to  $61,500,000,  or  nearly  $1,700  per  man.  Of  the  domestic 
plants  several  are  on  the  Pacific  coast,  31  near  the  Canadian  border, 
10  along  the  Mexican  border,  and  a  large  number  adjacent  to  the 
Atlantic  seaboard.  In  1920  there  were  imported  502,785  barrels, 
valued  at  $1,230,000,  the  major  part  coming  from  Canada.  Exports 
during  1920  amounted  to  2,985,810  barrels,  valued  at  $10,055,369. 
Of  these,  31,486  barrels  went  to  Canada  and  the  rest  were  shipped 
mainly  to  South  America  and  the  West  Indies ;  none  to  Europe. 

Rates  suggested. — The  witness  requested  a  rate  on  Portland  ce- 
ment equivalent,  on  American  valuation,  to  the  8  cents  per  100 
pounds  under  the  Payne-Aldrich  schedule.  This  is  necessary,  be- 
cause Canadian  productive  capacity  is  increasing  very  rapidly,  while 
favorable  geographical  location  and  freight  rates  permit  Canadian 
manufacturers  to  cut  below  the  prices  of  American  manufacturers 
in  the  northern  border  States,  especially  Michigan. 

Remarks. — Canada  imposes  a  tariff  of  8  cents  per  100  pounds  on 
cement,  equivalent  to  30.4  cents  per  barrel.  There  is  a  20  per  cent 
ad  valorem  duty  on  the  sacks  and  a  2  per  cent  sales  tax  covering  the 
cement  and  container,  making  in  all  a  duty  of  56.4  cents  per  barrel. 
In  addition,  there  is  an  antidumping  duty  not  to  exceed  15  per  cent. 

A  brief,  subsequently  submitted,  points  out  that  the  industry  is 
particularly  vulnerable  to -foreign  competition,  Canadian  manufac- 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  103 

turers  enjoying  especially  favorable  conditions.  Roman,  Portland, 
and  other  hydraulic  cement  should  be  subject  to  a  duty  of  8  cents  per 
100  pounds,  including  weight  of  barrel  or  package,  and  to  a  duty  of 
7  cents  per  100  pounds  in  bulk. 

Hearings:  Pages  1367-1369. 

Witness:  Mr.  Hal  H.  Smith,  representing  the  Huron  Portland 
Cement  Co. 

Costs  and  selling  prices. — Canadian  labor  costs  in  cement  plants 
are  20  to  25  per  cent  less  than  in  plants  on  the  American  side;  that 
is  to  say,  common  labor  is  25  cents  in  Canada  as  compared  with 
Michigan  labor  of  40  cents.  American  raw  material  is  located  at 
some  distance  from  the  manufacturing  plants,  and  Canadian  mills 
possess  an  advantage  in  this  respect.  Canadian  plants  are  located 
in  close  proximity  to  the  ports  of  Buffalo,  Cleveland,  and  Detroit, 
and  freight  rates  from  Canadian  plants  to  these  centers  are  in  some 
cases  as  low  as  10  cents  a  barrel,  or  one-third  of  the  domestic  rate  to 
the  same  center.  A  large  part  of  the  Michigan  cement  production  is 
sold  direct  to  the  consumer.  Prices  in  Michigan  to-day  are  $1.70  per 
barrel  net.  There  has  been  at  times  a  small  discount  as  between  the 
dealer  or  jobber  and  the  consumer. 

Size  of  industry. — There  are  12  cement  plants  in  the  Michigan 
district.  The  1920  production  was  5,000,000  barrels,  with  a  capacity 
of  7,000.000  barrels.  The  invested  capital  amounted  to  $16,000,000, 
and  the  industry  employs  3,000  men,  receiving  yearly  wages  of 
$4,500,000. 

Rates  suggested. — A  rate  of  8  cents  per  100  pounds,  including 
weight  of  barrel  and  package,  as  in  the  Payne- Aldrich  schedule, 
would  neutralize  to  some  extent  the  advantage  possessed  by  the 
Canadian  plants  in  the  way  of  cost.  It  would  tend  to  bring  cement 
duties  into  line  with  those  of  similar  products,  such  as  clay  and  lime- 
stone (raw  materials  in  the  manufacture  of  cement),  which  are 
assessed  5  cents  per  100  pounds. 

PARAGRAPH  204. — LIME. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  William  A.  Humphrey,  representing  the  National  Lime  Association  and 
the  lime  manufacturers  of  the  Pacific  coast ;  address,  Washington,  D.  C. 

Hearings :  Pages  1370-1377. 

Costs  and  selling  prizes. — The  Pacific  coast  lime  manufacturers 
compete  directly  with  the  lime  manufacturers  located  in  British  Co- 
lumbia. Labor  costs  in  British  Columbia  are  from  one-third  to  one- 
half  those  paid  in  the  United  States,  largely  because  Canadian  plants 
use  Hindu  and  Chinese  labor,  whereas  American  labor  is  used  in 
domestic  plants.  Thus,  wages  paid  in  Canada  include  Chinese  coop- 
ers, 40  cents  per  hour;  Chinese  firemen  and  stokers,  $3.85  per  day; 
Chinese  mine  labor,  $2.82  per  day ;  common  labor.  25  cents  per  hour 
(Canadian  currency).  As  against  these  rates  wages  in  the  United 
States  are :  Coopers,  87  cents  to  $1.25  an  hour ;  firemen  and  stokers, 
$7  to  $9  per  day ;  miners,  $5  to  $7  per  day ;  common  labor,  50  to  75 
cents  an  hour.  In  addition  to  the  above.  Canadian  plants  can  utilize 


104  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

cheap  foreign  shipping  in  transporting  their  products  to  American 
points  of  consumption,  while  domestic  plants  must  use  higher-priced 
American  tonnage.  The  15  per  cent  depreciation  in  Canadian  cur- 
rency is  in  itself  a  serious  handicap  to  the  American  producers.  As 
regards  selling  prices,  it  was  claimed  that  Canadian  producers  had 
resorted  to  unfair  methods  in  competing  on  the  United  States  side 
of  the  border.  The  statement  was  made  that  the  Pacific  Lime  Co. 
has  offered  to  stay  out  of  the  American  market  if  American  manu- 
facturers would  agree  to  pay  it  a  tribute.  It  has  published  mislead- 
ing and  false  advertising  and  has,  in  fact,  resorted  to  every  known 
form  of  commercial  piracy.  The  witness  claimed  further  that  a 
large  shipment  of  lime  was  placed  on  the  American  market  with  the 
express  purpose  of  breaking  the  market  when  this  proceeding  ap- 
peared to  be  profitable  to  the  Canadian  owners. 

Size  of  industry. — No  mention  was  made  of  the  lime-producing 
capacity  on  the  Pacific  coast  of  the  United  States,  but  the  Roach 
Harbor  Lime  Co.,  the  largest  plant,  with  a  capacity  of  450,000  barrels 
annually,  was  referred  to  as  now  producing  only  30,000  barrels  per 
year. 

Comparability. — The  Bureau  of  Standards  in  Washington  has 
demonstrated  by  chemical  analysis  that  both  Canadian  and  American 
lime  are  the  highest  quality  produced  in  the  world.  They  are,  there- 
fore, comparable  in  every  way. 

Rates  suggested.-  iSftSnSSk 

Lime  in  cooperage :_ .gross  weight--  50 

Lime  in  bulk do 30 

Hydrated  lime do 40 

Limestone,  broken  or  crushed,  in  bulk 15 

Ground  limestone  in  bags 7} 

Ground  limestone  in  bulk 5 

The  witness  estimates  that  these  rates  would  neutralize  the  protec- 
tion now  enjoyed  by  the  Canadian  producer,  but  would  still  leave  him 
the  advantage  of  foreign  cheap  ships,  of  exchange,  and  of  cheap 
Chinese  labor. 

PARAGRAPH  205. — KEENE'S  CEMENT,  GYPSUM,  ETC. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  A.  H.  Cousins,  representing  A.  H.  Cousins   (Inc.),  516  West  Twenty- 
fifth  Street,  New  York  City. 

Mr.  W.  A.  Revis,  representing  W.  H.  Revis  (Inc.),  New  York  City. 
Mr.  William  M.  Chadbourne,  representing  importers  of  Canadian  gypsum. 

Hearings:  Pages  1380-1383. 

Witness:  Mr.  A.  H.  Cousins,  representing  A.  H.  Cousins  (Inc.). 

Comparability. — Witness  states  that,  having  experimented  with 
every  grade  of  American  Keene's  cement,  he  has  been  unable  to  find 
one  which  satisfied  his  requirements.  The  A.  H.  Cousins  Co.,  manu- 
facturing high-grade  artificial  marble,  have  found  that  they  must 
have  the  highest  grade  of  imported  material. 

Hearings :  Pages  1377-1380. 

Witness:  Mr.  W.  A.  Revis,  representing  W.  H.  Revis  (Inc.). 
Costs  and  selling  prices. — The  ocean  freight  cost  of  laying  down 
Keene's  cement  at  New  York  is  $9.02,  and  the  total  cost  varies  from 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  105 

$27.32  to  $56.43,  depending  on  the  grade.  This  material  sells  to  the 
consumer  at  from  $40  to  $80  per  ton.  At  the  present  time  the  net 
wholesale  prices  of  comparable  foreign  and  domestic  grades  in  New 
York  City  are  $28.40,  $45.58,  and  $53.17  for  the  foreign  as  compared 
with  $24.70,  $27.97,  and  $50.20  for  the  domestic.  Prices  for  other 
foreign  grades  are  contained  in  witness's  brief  on  page  1379. 

Comparability. — The  highest  grade  of  Keene's  cement  imported 
at  high  prices  and  only  in  small  quantities  is  not  comparable  to 
anything  manufactured  in  the  United  States.  The  cheaper  grades  of 
imported  cement,  on  the  other  hand,  have  not  been  able  to  survive 
present  conditions  and  their  importation  has  about  ceased. 

Rates  suggested. — The  proposed  rates  in  H.  R.  7456  will  amount 
to  almost  double  those  of  the  Payne- Aldrich  bill  and  to  three  times 
the  Underwood  rate.  The  witness  requests  that  the  duties  be  made 
not  more  than  the  rates  contained  in  the  Payne-Aldrich  Act.  Ameri- 
can cement  is  selling  at  lower  prices  than  the  foreign  article,  show- 
ing conclusively  that  American  manufacturers  require  no  more  pro- 
tection than  they  are  receiving  at  present. 

Supplementing  his  oral  testimony,  Mr.  Eevis,  in  a  letter  to  the 
committee,  dated  August  23,  1921,  defends  his  statement  that  the 
duties  under  H.  R.  7456  are  very  materially  higher  than  those 
under  the  Payne-Aldrich  bill.  Although  the  rate  to  be  applied  is 
specific,  the  duties  are  on  a  sliding  scale  and  if  they  are  adjusted 
according  to  the  selling  price  of  the  comparable  American  article 
they  will  be  200  per  cent  higher  than  those  under  the  Payne-Aldrich 
bill.  Even  if  the  value  is  taken  as  the  actual  cost  of  the  imported 
merchandise,  the  increase  would  be  fully  100  per  cent  over  the  pres- 
ent duty  by  reason  of  the  doubly  increased  cost. 

Hates  suggested. — In  the  light  of  further  consideration,  Mr. 
Kevis  suggests  that  a  flat  rate  of  $5  per  ton  be  applied  to  all  grades 
of  Keene's  cement  that  may  be  imported.  This  would  eliminate 
the  vexed  question  of  value  and  be  otherwise  beneficial. 

Hearings:  Pages  1383-1390. 

Witness :  Mr.  William  M.  Chadbourne,  representing  importers  of 
Canadian  gypsum. 

Costs  and  selling  prices. — The  value  of  raw  Nova  Scotia  gypsum 
is  about  $1.50  per  ton. 

Size  of  industry. — The  normal  consumption  of  raw  gypsum  in 
the  United  States  is  between  2.500,000  and  3,000,000  tons,  10  per  cent 
of  which  is  imported.  From  80  to  85  per  cent  of  the  domestic  pro- 
duction is  mined  west  of  the  Alleghenys  and  does  not  reach  the 
Atlantic  seaboard  in  any  quantity.  East  of  the  Alleghenys,  in  the 
United  States,  are  two  sources  of  supply  only,  one  in  western  New 
York,  near  Buffalo,  and  two  small  plants  in  West  Virginia.  The 
Virginia  plants  produce  between  100,000  and  150,000  tons  a  year, 
and  their  product  is  distributed  locally  and  in  the  south  Atlantic 
seaboard  States.  About  two-thirds  of  the  supply  of  raw  gypsum  for 
the  New  England  industrial  region  comes  from  western  New  York 
and  about  one-third  from  Nova  Scotia.  The  quarries  in  Nova  Scotia 
are  owned  by  American  capital.  The  material  is  mined  in  Nova 
Scotia  and  sh'ipped  crude  to  the  United  States.  When  it  reaches  this 
country,  it  is  converted  into  the  finished  product  in  American  mills. 

Rates  suggested. — Witness  would  have  raw  gypsum  restored  to 
the  free  list,  because  the  duty  collectable  is  not  sufficient  to  pay  for 


106  DIGEST   OF   TARIFF    HEARINGS,    H.   R.   7456. 

the  trouble  involved  and,  further,  because  the  cost  of  collection  and 
handling,  incident  to  measuring  for  duty  purposes,  is  a  considerable 
handicap  to  the  manufacturers  of  gypsum  in  this  country.  Ameri- 
can gypsum  producers,  with  the  exception  of  one  small  company  in 
Virginia,  raised  no  objection  to  the  placing  of  raw  gypsum  on  the 
free  list.  The  Southern  Gypsum  Co.,  of  North  Holston,  Va.,  ob- 
jected on  the  ground  that  the  10,000  tons  of  foreign  gypsum  entered 
through  Norfolk,  Va.,  competes  with  the  domestic  product  for  fer- 
tilizing purposes,  while  the  duties  naturally  increase  the  cost  to  the 
American  farmer. 

PARAGRAPH  206. — PUMICE  STONE. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   Robert   Laughlin,   representing   California  pumice-stone   miners ;    ad- 
dress, Buffalo,  N.  Y. 

FAVORING  LOWER  DUTIES  : 

Mr.  F.  L.  Goetz,  vice  president,  representing  James  H.  Rhodes  &  Co. 
The  American  Piano  Co.,  New  York  City.     (Brief.) 

Hearings:  Pages  1394-1403. 

Witness:  Mr.  Robert  Laughlin,  representing  California  pumice- 
stone  miners. 

Cost  and  selling  prices. — The  delivered  cost  of  American  pumice 
stone  at  Atlantic  seaboard  is  $39.94  per  ton.  Of  this  cost  freight  and 
cartage  alone  amount  to  $22.20  per  ton,  including  3  per  cent  war 
tax.  This  may  be  compared  with  foreign  raw  material  at  $13.50, 
ocean  freight  at  $7,  and  present  duty  of  65  cents  a  ton,  making  a  total 
of  $21.15  delivered  on  Atlantic  seaboard.  Touching  selling  prices, 
there  is  a  wide  difference  between  the  price  of  the  ground  pumice 
stone  in  bulk  and  the  price  obtained  by  the  retailer  in  small  lots. 
Samples  of  ground  pumice  were  submitted  for  which  witness  had 
paid  at  the  rate  of  80  cents  and  $1.20  per  pound,  respectively,  whereas 
the  production  cost  was  about  3  cents.  This  was  cited  to  show  that 
the  duty  on  either  the  raw  or  the  manufactured  product  would  not 
materially  increase  the  price  to  the  ultimate  consumer. 

Size  of  industry. — The  normal  consumption  of  pumice  is  between 
10,000  and  11,000  tons  per  annum.  Present  production  in  the  United 
States  is  nil,  the  last  mine  closing  down  about  January,  1920.  Do- 
mestic production  would  not  be  increased  to  over  4,000  or  5,000  tons 
a  year  except  as  eastern  consumption  expanded. 

Comparability. — Witness  states  in  his  brief  that  there  are  some 
uses  for  which  only  the  imported  pumice  is  suitable,  but  that  the  cost 
of  pumice  stone  is  so  small  in  comparison  with  the  total  cost  of  the 
manufactured  article  that  the  effect  of  the  proposed  rate  would  be 
negligible.  He  cited  the  example  of  an  automobile  selling  for  from 
$6,000  to  $6,500  upon  which  1  pound  of  pumice  is  used. 

Rates  suggested. — 

Cents  per  pound. 

Pumice  stone,  valued  at  $15  or  less  per  ton 1 

Pumice  stone,  valued  at  more  than  $15  per  ton 1. 1 

Wholly  or  partly  manufactured 1.  4 

Manufactures  of  pumice  stone *  1 

1  And  26  per  cent  ad  valorem. 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  107 

Remarks. — The  "  brief  "  referred  to  above,  and  from  which  much 
has  been  taken,  is  a  letter  dated  July  25,  1921,  addressed  to  the  Com- 
mittee on  Finance  by  Brand  &  Stevens,  New  York  City,  as  showing 
that  "  the  proposed  tariff  is  not  adequate  to  cover  the  differential  be- 
tween the  foreign-shipped  product  and  the  American." 

Hearings :  Pages  1391-1394. 

Witness:  Mr.  F.  L.  Goetz,  vice  president,  representing  James  H. 
Rhodes  &  Co. 

Costs  arifi  selling  prices. — Foreign  pumice  stone  cost  $7.50  a  ton 
prior  to  the  war  and  now  costs  $13.50  per  ton  in  Italy.  This  is  crude 
material.  No  data  were  given  on  domestic  costs. 

Size  of  industry. — Italy  is  the  largest  producer  of  high-grade 
pumice  stone.  Pumice  stone  is  produced  in  the  United  States  in 
Kansas  and  in  the  Rocky  Mountain  States. 

Comparability. — American  pumice  stone  is,  according  to  the  wit- 
ness, absolutely  unsuitable  for  use  in  fine  work,  such  as  furniture 
polishing  and  technical  uses.  The  American  product  is  largely  used 
in  cleansing  compounds,  such  as  Dutch  Cleanser,  but  for  other  uses 
the  imported  product  is  indispensable. 

Rates  suggested. — A  duty  on  pumice  stone,  crude,  not  exceeding  65 
cents  per  ton,  practically  the  rate  of  duty  paid  at  present,  or  5  per 
cent  of  the  present  value  in  Italy,  namely  $13.50.  An  increased  rate 
of  duty  would  handicap  American  consumers  of  ground  pumice  stone 
and  would  not  aid  American  manufacturers  in  disposing  of  their 
product. 

Remarks. — A  letter  from  Mr.  Garlow,  of  Meade,  Kans.,  a  former 
domestic  producer  of  pumice  stone,  had  been  introduced  in  the  hear- 
ings of  the  Ways  and  Means  Committee  (Part  1,  pp.  477,  481).  Mr. 
Garlow,  who  had  thought,  in  1913,  that  Italian  pumice  stone  should 
be  kept  out,  now  says  that  American  pumice  is  not  competitive  with 
the-  Italian  article. 

Witness:  The  American  Piano  Co.,  New  York  City.  (Brief;  no 
appearance  at  hearings.) 

Rates  suggested. — The  company  protests  against  the  increase  in 
H.  R.  7456  on  pumice  stone  to  the  extent  of  3,000  per  cent,  assert- 
ing that  no  pumice  stone  that  will  work  at  all  satisfactorily  is  pro- 
duced in  the  United  States.  An  increase  in  the  duty  from  67^ 
cents  per  ton  to  $20  per  ton,  it  is  asserted,  would  make  it  impossible 
for  American  manufacturers  to  turn  out  a  high-grade  finished  piano 
or  other  high-class  furniture. 

Remarks. — The  piano  industry  is  a  very  large  consumer  of  pumice 
stone,  but  satisfactory  results  have  been  obtained  only  through  the 
use  of  American-ground  Italian  pumice.  For  a  period  of  about 
six  months  during  the  war,  when  it  was  impossible  for  the  company 
to  obtain  Italian  pumice,  southern  California  pumice  stone  was 
used.  Although  it  is  understood  that  in  some  industries  the  domes- 
tic pumice  has  proved  to  be  50  per  cent  efficient,  the  company's  em- 
ployees stated  that  they  would  be  obliged  to  quit  unless  they  could 
obtain  Italian  pumice. 


108  DIGEST  OF   TARIFF   HEARINGS,  H.  R.   1456. 

PARAGRAPH  207. — FLUORSPAR,  CHINA  CLAY,  ETC. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHEK  DUTIES  : 

Mr.  A.  A.  Northern,  representing  miners  of  fluorspar ;  address,  Hopkins- 
ville,  Ky. 

Mr.  Milton  A.  Edgar,  representing  the  American  Clay  Producers'  Associa- 
tion and  others. 

FAVORING  LOWER  DUTIES: 

Mr.  John  Richardson,  representing  himself  and  other  importers  and  con- 
sumers of  foreign  china  clay. 

The  Locke  Insulator  Corporation,  Baltimore,  Md.     (Brief.) 
The  Maine  Coated  Paper  Co.,  Rumford,  Me.     (Briet) 
W.  C.  Hamilton  &  Sons,  Miquou,  Montgomery  County,  Pa.     (Brief.) 

Hearings :  Pages  1419-1425. 

Witness :  Mr.  A.  A.  Northern,  representing  miners  of  fluorspar. 

Costs  and  selling  prices. — Development  costs  in  fluorspar  mining 
are  an  important  factor  in  the  total,  because  the  material  occurs  in 
isolated  blocks  and  many  feet  of  tunnel  must  often  be  driven  from 
one  block  of  ore  to  another.  Mining  could  be  cheaply  carried  on  be- 
fore the  war,  because  at  that  time  the  deposits  were  on  the  surface 
and  easily  obtainable.  During  the  war  these  surface  deposits  were 
exhausted,  and  at  the  present  time  mining  has  been  carried  on  to  a 
depth  of  several  hundred  feet.  The  cost  of  production  at  the  mines 
in  Kentucky  during  the  year  1920  was  $20.25  per  ton  of  2,000  pounds. 
The  selling  price  at  the  mines  in  Canada,  January- June,  1921,  was 
$8.75  per  ton,  and  the  English  cost  of  production  was  $2.80  per  ton. 
The  average  landed  cost  of  foreign  fluorspar  during  the  first  six 
months  of  1921  was  $10.50,  exclusive  of  duty.  This  includes  first 
cost,  transportation,  and  profit  to  the  foreign  producer,  as  compared 
with  the  average  cost  of  $20.25  in  this  country  without  profit  to  the 
consumer.  As  against  this,  English  fluorspar  is  now  being  delivered 
at  Atlantic  ports,  duty  paid,  at  a  cost  of  about  $10.50  per  short  ton. 

Size  of  industry. — The  production  of  fluorspar  in  the  United  States 
in  1917  was  218,000  tons.  Imports  in  1918  amounted  to  12,572  tons. 
In  1914  the  domestic  production  was  95,000  tons,  and  in  1918,  263,000 
tons.  Aggregate  tonnage  and  costs  in  1920  are :  Tons,  140,393 ;  costs, 
$2,864,442. 

Rates  suggested. — Witness  requests,  as  a  minimum,  a  duty  of  $10 
per  short  ton,  this  being  necessary  to  neutralize  the  difference  in 
production  costs  between  the  domestic  and  the  foreign  article. 

Hearings :  Pages  1415-1419. 

Witness:  Mr.  Milton  A.  Edgar,  representing  the  American  Clay 
Producers'  Association  and  others. 

Costs  and  selling  prices. — The  major  difference  in  the  cost  of 
American,  as  compared  with  English,  china  clay  lies  in  the  freight 
rates  from  the  mine  to  the  point  of  consumption.  Rates  from  south- 
ern producing  points  to  consumption  points  east  of  Buffalo  and 
Pittsburgh  run  $9  a  ton.  The  ocean  freight  rate  to-day  is  $2.50  a 
ton — almost  a  ballast  rate. 

Size  of  industry. — The  annual  consumption  of  china  clay  is  about 
550,000  tons  of  2,000  pounds.  Of  this,  250,000  tons  is  domestic  and 
300,000  tons  English.  All  but  about  50,000  tons  of  the  domestic  pro- 
duct\on  is  produced  in  the  South,  while  the  market  for  it  lies  almost 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  109 

entirely  in  the  North  and  West;  paper  mills  take  about  two-thirds 
of  it. 

Comparability. — No  reference  is  made  to  comparability  beyond  an 
admission  that  some  mills  prefer  English  clay  for  paper-making 
purposes. 

Rates  suggested. — Six  dollars  per  ton  on  china  clay ;  a  rate  of  $4.50 
would  barely  cover  cost  differences. 

In  a  letter  dated  August  22, 1921,  the  witness,  as  requested,  informs 
the  committee  that,  since  1914,  the  freight  rate  on  domestic  clays 
has  been  increased  58$  per  cent,  whereas  the  freight  on  English  clay, 
always  a  ballast  rate,  is  now  lower  than  it  was  in  1912.  In  1912  the 
ocean  freight  rate  from  England  was  8  to  9  shillings,  or  $2  to  $2.25 
per  long  ton.  In  August,  1921,  taking  exchange  at  the  then  rate  of 
exchange,  the  rate  of  10  shillings  per  long  ton  amounted  to  $1.82. 

Hearings :  Pages  1403-1415. 

Witness:  Mr.  John  Richardson,  representing  himself  and  other 
importers  and  consumers  of  china  clay. 

Costs  and  selling  prices. — The  witness  stated  that  arguments  of 
the  domestic  producers  (typified  in  Mr.  Edgar's  testimony)  center 
about  the  difference  in  freight  costs  between  domestic  points  of 
production  in  the  South  and  points  of  consumption  in  Maine.  The 
ocean  freight  rate  this  year  is  15  shillings,  not  10  shillings  per  ton, 
as  domestic  miners  claim;  moreover,  Maine  consumes  only  50,000 
tons  of  china  clay  a  year.  The  freight  rate  to  Maine  from  Georgia 
is  $9.06,  as  against  an  ocean-rail  rate  of  $5.50.  Massachusetts  con- 
sumes 50,000  tons  a  year,  with  freight  rates  the  same  as  for  Maine. 
New  York  and  New  Jersey  consume  50,000  tons.  The  rate  from 
Georgia  is  $8.65,  the  rate  from  foreign  sources  being  $8.-  Pennsyl- 
vania, Delaware,  Maryland,  Virginia,  and  West  Virginia  take  about 
85,000  tons;  rates  from  Georgia  are  $7;  from  England,  $8.  Michi- 
gan consumes  60,000  tons,  with  a  rate  from  Georgia  of  $7.65  and  for- 
eign, $10.  Ohio  consumes  60,000  tons ;  the  domestic  rate  is  $8 ;  for- 
eign, $10.  Wisconsin  consumers  use  domestic  china  clay  exclusively,, 
the  rate  being  $9,  while  on  the  foreign  it  would  be  $12. 

Figures  furnished  by  one  of  the  domestic  clay  producers  placed  the 
present  cost  of  production  at  from  $4.50  to  $5  for  crude  clay  and 
from  $6  to  $6.50  for  washed  clay.  English  china  clay  production 
requires  more  than  double  the  labor  that  is  required  in  domestic 
mines  and  the  cost  per  ton  for  labor  in  English  clay  works  is,  there- 
fore, higher  than  the  cost  per  ton  in  the  American  mines.  English 
day  labor  to-day  is  paid  $15.30  for  a  42-hour  week.  Pieceworkers  re- 
ceive from  $19.50  to  $24.25  per  week.  Coal  is  an  important  item  of 
expense  and  fuel  costs  in  England  are  very  high  at  this  time.  At  the 
present  rate  of  exchange  the  cheapest  grade  of  English  china  clay 
used  for  paper  making  can  not  be  marketed  at  Atlantic  seaboard 
markets  for  less  than  $12  to  $14.50  per  ton,  and  to  this  must  be  added 
the  inland  freight  rate.  Present  prices  on  domestic  clay  range  from 
$6  to  $7.50  f.  o.  b.  mine  on  crude  clay,  and  $8  to  $10  on  washed  clay. 
Domestic  pulverized  clays,  quoted  at  $12  to  $20  f.  o.  b.  mine,  are 
not  competitive,  since  no  pulverized  clay  is  imported. 

Size  of  industry. — British  producers  have  suffered  during  the  past 
year  even  more  than  the  domestic.  For  the  first  six  months  of  1920 
British  exports  amounted  to  211,633  tons.  In  1921,  for  the  same 


110  DIGEST   OF   TARIFF   HEARINGS,    H.   R.    74-56. 

period,  they  were  only  87,096  tons.  Domestic  miners  testified  before 
the  Ways  and  Means  Committee  that  from  7,000  to  10,000  men  were 
employed  in  the  domestic  clay  industry  at  wages  from  $2.50  to  $10 
per  day.  These  figures,  say  10,000  men  at  $2.50  per  day,  working 
200  days  to  a  year,  give  a  total  yearly  wage  of  $5,000,000.  The  total 
production  of  china  clay  in  1919*  was  estimated  at  $1,648,000,  showing 
a  larger  expenditure  for  labor  than  the  total  value  of  the  finished 
product. 

English  miners  are  receiving  27  cents  an  hour  or  practically  the 
same  as  the  $2.50  a  day  paid  in  America. 

Comparability. — Domestic  clay  is  satisfactory  for  use  as  a  filler  in 
cheap  paper  manufacture  and  for  this  use  has  displaced  the  foreign 
article  on  a  price  basis.  High-grade  clay,  such  as  is  used  for  coating 
paper,  is  not  produced  in  the  United  States.  For  this  manufacturers 
must  have  English  clay.  Probably  one-half  of  the  supply  of  Eng- 
lish clay  imported  each  year  consists  of  what  is  known  as  "  high-grade 
filler  and  high-grade  potting  clay  " ;  there  are  no  clays  in  the  United 
States  which  can  compete  on  a  quality  basis.  The  low-grade  filling 
clay  used  in  the  paper  manufacturing  industry  amounts  to  about  one- 
fourth  of  the  total  imports  and  is  the  only  one  with  which  American 
clav  is  in  competition. 

Rates  suggested. — The  present  rate  of  $1.25  per  pound  on  kaolin 
or  china  clay  should  not  be  advanced,  as  only  a  small  percentage  of 
the  importations  are  competitive  with  domestic  products.  That  being 
so,  increased  duties  would  not  aid  the  American  miner,  since  con- 
sumers must  have  the  foreign  clay  in  any  event. 

Remarks. — The  witness's  testimony  was  supplemented  by  a  brief, 
referred  to  on  page  1408,  dated  August  20, 1921,  in  behalf  of  china  and 
earthenware  importing  interests.  Appended  to  it  is  a  copy  of  memo- 
randum of  statement  made  at  a  hearing  before  the  War  Industries 
Board,  March  27,  1918,  in  behalf  of  book-paper  manufacturers  in 
regard  to  a  proposed  embargo  on  the  importation  of  china  clay. 
The  documents  are  summarized  as  follows : 

LBrief.] 

It  was  strongly  urged  upon  the  committee  that  the  present  duty 
of  $1.25  per  ton  on  English  china  clay  should  not  be  increased.  The 
material  differs  essentially  from  the  American  product  going  by  the 
same  name.  The  latter  can  not  be  substituted  for  the  former  without 
injury  to  the  product,  whether  paper  or  pottery.  The  two  materials 
are,  in  fact,  largely  noncompetitive.  An  additional  duty  would  be  of 
small  or  doubtful  value  to  the  relatively  small  American  clay  in- 
dustry, while  enhancing  prices  to  consumers. 

[  Appendix.  ] 

It  was  admitted  that  in  the  lower  grades  of  book  and  printing  paper 
a  considerable  percentage  of  American  clay  can  be  safely  used,  but  its 
use  for  high  grades  is  injurious.  The  development  of  southern 
(United  States)  clays  is  insufficient  to  provide  for  the  needs  of  the 
country,  and  difficulties  in  regard  to  railroad  transportation  were 
then  increasing.  As  against  this,  a  large  proportion  of  English  clays 
have  been  brought  into  this  country  practically  as  ballast.  A  stoppage 
of  English  clay  imports  would  entail  a  large  curtailment  of  available 
material,  with  consequent  loss  of  employment  to  workers,  injury  to 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  Ill 

employers,  and  hardships  to  consumers  of  periodicals  and  other  book 
papers. 

Witness :  The  Locke  Insulator  Corporation,  Baltimore,  Md.  (Brief ; 
no  appearance  at  hearings.) 

Rates  suggested. — No  tariff  on  English  clays  until  such  time  as 
American  clay  miners  are  prepared  to  furnish  equivalent  material. 

Remarks. — An  increase  in  the  tariff  at  present  would  cause  manu- 
facturers either  to  use  domestic  clays,  thereby  lowering  the  quality 
of  their  product  and  jeopardizing  the  reputation  for  superiority  en- 
joyed by  American  electrical  porcelain,  or  require  them  to  maintain 
the  quality  at  increased  cost,  with  consequent  difficulty  in  continuing 
the  export  business  taken  from  German  insulator  manufacturers. 

This  corporation  now  uses  English  china  clay  exclusively,  although 
it  would  greatly  prefer  to  use  domestic  clays  and  has  tested  hundreds 
of  samples.  It  uses  as  much  domestic  ball  clay  as  possible,  but  in  all 
classes  of  clays  domestic  miners  have  been  found  unwilling  to  appre- 
ciate the  importance  of  uniformity  in  grades. 

Witness:  The  Maine  Coated  Paper  Co.,  Rumford,  Me.  (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — The  brief  is  a  protest  against  an  increase  in  the 
duty  on  English  china  clay  over  the  present  rate  of  $1.25  per  ton.  It 
is  claimed  that  the  duty  under  H.  R.  7456  will  not  protect  any  Ameri- 
can industry,  as  there  is  no  domestic  product  that  can  be  used  in 
place  of  English  china  clay  in  the  manufacture  of  coated  papers. 

Witness:  W.  C.  Hamilton  &  Sons,  Miquon,  Montgomery  County, 
Pa.  (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Any  added  duty  on  kaolin  will  prove  an  added 
cost  to  manufacturers  of  certain  products  without  affording  any 
protection  to  the  domestic  mining  industry. 

Remarks. — Regardless  of  the  amount  of  the  duty,  English  clay 
must  be  used  to  a  considerable  extent  in  the  pottery  industry  and, 
except  in  low-grade  papers,  exclusively  in  the  paper  trade.  The 
characteristics  of  a  good  paper  clay  are  absolute  cleanliness,  free- 
dom from  foreign  matter,  and  plasticity.  Dirty  clay  means  dirty 
paper.  The  most  deleterious  foreign  substance  is  mica,  which  is 
crushed  out  when  the  paper  comes  through  the  calender  rolls,  leav- 
ing pinholes.  English  clay  producers  have  through  generations  of 
experience  learned  the  art  of  floating  and  washing  clay  far  more 
effectively  than  can  be  done  in  this  country.  While  there  are  a 
number  of  patented  fillers  (and  talc  is  also  used  for  this  purpose), 
practically  all  of  them  tend  to  dull  the  edges  of  the  printers'  knives. 

PARAGRAPH  207.— CLAY. 

WITNESS. 

FAVORING  HIGHER  DUTIES  : 

The  Kentucky  Construction  &   Improvement   Co.,   Mayfield,   Ky.     (Brief; 
no  appearance  at  hearings.) 

Size  of  industry. — It  is  stated  that  there  are  enormous  deposits  of 
clays  suitable  for  the  manufacture  of  all  kinds  of  ceramic  products 
in  the  States  of  Kentucky,  Tennessee,  Missouri,  Mississippi,  Georgia, 
and  North  Carolina.  According  to  papers  published  by  the  Bureau 


112  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

of  Standards,  such  clays  have  been  successfully  used  in  the  produc- 
tion of  various  articles.  Glass  melting  pots  were  manufactured  from 
American  clays  during  the  war  and  met  every  requirement,  includ- 
ing the  production  of  optical  glass.  The  use  of  American  plastic 
clay  pots  and  other  refractories  would  rapidly  grow  into  an  enor- 
mous industry  if  the  product  were  placed  on  a  competitive  basis 
with  German  raw  material. 

Rates  suggested. — A  duty  of  40  per  cent  to  be  placed  on  ball  clays, 
kaolin,  and  fire  clays. 

Remarks. — American  ball  clays  are  well  suited  for  steel  enamels 
and  are  the  best  that  can  be  had  for  stoneware  glaze.  For  semiporce- 
lain  and  porcelain,  including  electrical  porcelain,  dinnerware,  sani- 
tary ware,  and  other  white  Tines,  American  ball  clays  will  meet  all 
requirements,  but  their  production  can  not  go  ahead  without  proper 
tariff  protection. 

PARAGRAGH  207. — DIATOMACEOUS  EARTH. 

WITNESS. 

FA  YOKING  PROPOSED  OB  HIGHEB  DUTIES  : 

The  Celite  Products  Co.,  Los  Angeles,  Calif.     (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — The  average  cost  of  production  at  the 
point  of  manufacture  is  approximately  $25  a  short  ton,  whereas  the 
value  of  the  foreign  produce,  as  shown  by  the  import  statistics,  is 
only  $10  a  ton. 

Size  of  industry. — Prior  to  1912  there  was  in  this  country  only 
one  operating  company,  producing  only  1,000  tons  of  crude  mate- 
rial, used  principally  for  insulation  purposes.  The  Celite  Products 
Co.,  which  was  organized  in  that  year,  spent  almost  $1,000,000  in 
developing  many  new  uses  for  the  material  as  a  filtering  and  filling 
medium  in  the  chemical  industries ;  new  methods  of  preparation  were 
also  discovered  which  have  greatly  increased  its  value  as  a  high- 
temperature  heat  insulator.  Since  1912  other  companies  have  started 
up,  until  there  are  now  about  12 — 3  located  in  Washington ;  2  each  in. 
Oregon,  California,  and  Nevada;  and  1  each  in  Maryland,  Utah, 
and  New  Hampshire. 

The  total  value  of  diatomaceous-earth  plants  in  the  United  States 
is  estimated  to  exceed  $6,000,000.  In  1920  the  total  consumption  was 
in  excess  of  60,000  tons,  valued  at  more  than  $2,000,000.  The  in- 
dustry gave  employment  to  about  800  men,  consuming  supplies  and 
equipment  valued  at  approximately  $800,000.  Direct  labor  consti- 
tutes about  60  per  cent  of  the  cost  of  production  of  the  American 
product. 

Rates  suggested. — The  duty  on  diatomaceous  earth  should  be  in- 
creased to  30  per  cent  ad  valorem  based  on  the  American  value  of 
the  foreign  product. 

Remarks. — The  production  and  manufacture  of  diatomaceous  earth 
in  the  United  States  is  a  new  industry.  This  mineral,  a  porousj, 
hydrated  silica,  is  to  be  found  both  in  the  eastern  and  the  western 
parts  of  the  United  States.  After  quarrying,  the  crude  mineral  is 
processed  by  exposure  to  the  weather,  then  reduced  and  separated  in 
specially  designed  mills  into  a  fine  powder,  which  is  bagged  for 


DIGEST  OF  TARIFF   HEARINGS,  H.  R.   7456.  113 

shipment.  Other  products  are  manufactured  by  cutting  the  crude 
material  to  shape  in  a  sawmill  or  by  pressing  the  ground  material 
into  block  or  brick  molds  and  burning  at  a  high  temperature. 

Diatomaceous  earth,  or  kieselguhr,  is  produced  chiefly  in  Ger- 
many and  Canada,  but  a  certain  amount  comes  also  from  Africa, 
Japan,  Australia,  Mexico,  and  Spain.  The  German  industry  is  old 
and  well  established  as  regards  certain  products,  but  has  not  as  yet 
been  extended  into  many  of  the  new  fields  created  by  the  American 
companies. 

Government  statistics  have  grouped  diatomaceous  earth  with 
tripoli,  rottenstone,  abrasives,  etc.,  although  it  is  used  in  industries 
entirely  different  from  any  in  which  they  are  used.  It  differs  from 
them  in  physical  and  chemical  constitution.  Other  names  which 
might  be  recognized  in  the  tariff  schedule  as  more  or  less  synonymous 
are  kieselguhr,  infusorial  earth,  tripolite,  and  fossil  flour. 

PARAGRAPH  207. — FULLER'S  EARTH. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Floridin  Co.,  Warren,  Pa.     (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — English  fuller's  earth  is  offered  at  New 
York  as  low  as  $20  per  ton  f.  o.  b.  dock,  and  including  bags,  whereas 
the  average  cost  to  the  Floridin  Co.  for  mining  and  preparing  the 
product  last  year  was  $11.86  per  ton.  Bags  cost  $1.50  per  ton  and 
freight  from  their  mines  at  Quincy  and  Jamieson,  Florida,  to  New 
York,  by  the  cheapest  route  (rail  and  water)  is  $7.07  per  ton,  a  total 
of  $20.43  per  ton  laid  down  in  New  York,  or  43  cents  less  than  the 
selling  price  of  the  English  product. 

Rates  suggested. — An  increase  in  the  duty  from  $1.75  to  $3  per 
ton,  in  order  to  induce  capital  to  invest  in  the  industry.  As  there 
are  no  factories  erected  for  grinding  imported  crude  fuller's  earth, 
the  amount  purchased  in  the  crude  state  is  insignificant.  It  is  there- 
fore suggested  that  the  duty  on  the  crude  earth  should  equal  that  on 
the  manufactured  product. 

PARAGRAPH  207. — SILICA,  CRUDE. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORINIG  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  George  F.  Pettinos,  Philadelphia,  Pa.,  representing  the  Bridgeton  Sand 
Co.  and  the  Crystal  Sand  Co.,  Bridgeton,  N.  J.  (Brief;  no  appearance 
at  hearings.) 

Costs  and  selling  prices. — The  sand  produced  by  these  companies 
contains  99.05  per  cent  silica  and  is  used  in  the  manufacture  of  glass, 
silicate  of  soda,  etc.  It  competes  with  German  sand  loaded  at  Ant- 
werp at  a  cost  of  80  cents  to  $1  per  1,000  kilos  (36  to  45  cents  per  ton) 
and  comes  to  this  country  as  ballast.  Arriving  in  this  country,  this 
sand  is  discharged  on  lighters  and  taken  to  the  consumers  for  from 
40  to  50  cents  per  ton.  Shipments  of  Belgian  sand  have  arrived  at 
Philadelphia,  Xew  York,  Baltimore,  and  Norfolk,  at  an  average  total 
cost  of  $1.50  per  ton,  whereas  the  freight  from  the  domestic  plants 


114  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    1456. 

to  Philadelphia  is  $1.54,  and  to  New  York  and  vicinity,  $2.94  per 
ton. 

Rates  suggested.- — A  duty  of  $2  a  ton  on  washed  silica  sand. 

PARAGRAPH  207. — GROSS- ALMERODE  POT  CLAY. 

WITNESS. 

FAVOBING  LOWER  DUTIES  : 

The  Ohio  Valley  Clay  Co.,  Steubenville,  Ohio.     (Brief;  no  appearance  at 
hearings. ) 

Comparability. — During  the  war  and  until  about  a  year  ago,  various 
domestic  clays  were  substituted  for  the  German  clay,  but  glass  manu- 
facturers did  not  get  40  per  cent  service  out  of  the  pots.  As  soon  as 
German  clays  were  again  offered  at  a  reasonable  price,  one  pot  manu- 
facturer after  another  started  to  use  German  clays ;  there  is  no  manu- 
facturer in  the  business  to-day  who  does  not  prefer  German  to  any 
domestic  clay  he  ever  used. 

Rates  suggested. — The  proposed  duties  on  gross-almerode  glass  pot 
clay  would  work  serious  financial  injury  to  every  glass-pot  manu- 
facturer in  the  United  States  using  glass  melting  pots  and  tank 
blocks.  The  provision  should  be  eliminated  from  the  bill. 

PARAGRAPH  207. — BAUXITE. 

WITNESS. 

FA  YOKING  LOWER  DUTIES  : 

The  Pennsylvania  Salt  Manufacturing  Co..  Philadelphia,  Pa.     (Brief;  no 
appearance  at  hearings.) 

Rates  suggested. — Protest  is  made  against  the  proposed  duty  of 
$1  per  ton  on  bauxite. 

Remarks. — The  plant  process  of  this  company  was  constructed  at 
a  heavy  expense  to  use  high-grade  bauxite,  as  found  in  France, 
Italy,  etc.,  and  totally  unlike  that  produced  in  this  country,  con- 
taining as  it  does  10  to  15  per  cent  more  alumina  (the  valuable  con- 
stituent) ;  5  to  10  per  cent  less  silica  (the  objectionable  impurity) ; 
and  20  per  cent  more  iron,  which  in  their  case  is  a  desirable  con- 
stituent. 

During  the  war  exigency  the  firm  attempted  to  use  American 
bauxite  in  the  production  of  oxide  of  alumina  for  use  in  the  manu- 
facture of  metallic  aluminum,  fine  abrasives,  and  various  iron-free 
salts.  The  yield,  however,  was  poor  and  costs  were  so  high  as  to 
demonstrate  the  impossibility  of  such  substitution. 

PARAGRAPH  208.— MICA. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  W.  Vance  Brown,  representing  numerous  producers  of  mica ;  address, 

Asheville,  N.  C. 

Mr.  J.  E.  Burleson,  representing  miners  of  mica ;  address,  Spruce  Pine,  N.  C. 
Mr.  B.  C.  Grindstaff,  representing  miners,  of  mica ;  address,  Asheville,  N.  C. 
Mr.  James  L.  Frazee,  miner  and  manufacturer  of  mica,  New  York  City. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  115 

FAVORING  LOWER  DUTIES  : 

Mr.  James  I.  Brereton,  representing  the  Columbia  Graphophone  Manufac- 
turing Co. 

Mr.  Marion  Dorian,  representing  the  Columbia  Graphophone  Manufacturing 
Co.,  Bridgeport,  Conn. 

The  Columbia  Graphophone  Manufacturing  Co.     (Brief.) 

REQUESTING  MODIFICATIONS  : 

The  Rogers-Pyatt  Shellac  Co.,  New  York  City. 

REQUESTING  RECLASSIFICATION  : 

Mr.  Charles  P.  Storrs,  representing  the  Storrs  Mica  Co.  and  other  manufac- 
turers ;  address,  Oswego,  N.  Y. 

Mr.  Lewis  McCarthy,  representing  the  Mac-alien  Co.  and  15  other  manufac- 
turers, miners,  and  dealers  in  mica. 

Mr.  C.  W.  Jefferson,  representing  the  Mica  Insulator  Co.,  New  York  City. 

The  Asheville  Mica  Co.,  Biltmore,  N.  C.     (Brief.) 

Fourteen  manufacturers,  dealers,  and  miners  in  mica.  (Brief;  no  appear- 
ance at  hearings.) 

Hearings :  Pages  1451-1455. 

Witness :  Mr.  W.  Vance  Brown,  representing  numerous  producers 
of  mica. 

Costs  and  selling  pieces. — Wages  in  India  range  from  3  to  23  cents 
per  day,  applying  to  65  per  cent  of  the  world's  production.  While 
users  are  sometimes  prejudiced  in  favor  of  the  product  of  one  country 
or  another,  they  are  all  very  similar.  The  United  States  production 
averages  more  of  the  low  quality  than  of  the  finer,  because  the  fine 
qualities  are  usually  in  hard  rock  or  at  deeper  levels,  requiring  large 
capital  and  more  extensive  mining. 

Size  of  industry. — Of  the  total  amount  of  mica  consumed  in  the 
United  States,  imported  mica  furnishes  65  per  cent  and  the  domestic 
35  per  cent.  In  1919  the  figures  were  75  per  cent  and  25  per  cent. 

Rat 


Unmanufactured  or  rough-trimmed  mica  and  splittings,  25  cents  per  pound 

and  50  per  cent  ad  valorem. 
Cut,  stamped,  or  trimmed  and  built-up  mica,  and  manufactures  of  mica, 

50  cents  per  pound  and  50  per  cent  ad  valorem. 

Photographic  diaphragms,  10  cents  each  and  50  per  cent  ad  valorem. 
Crude,  raw,  scrap,  or  refuse,  1  cent  per  pound  and  50  per  cent  ad  valorem. 
Ground,  flake,  or  dust,  2  cents  per  pound  and  50  per  cent  ad  valorem. 

Remarks. — Mr.  Brown's  brief  includes  a  letter  from  the  American 
Mining  Congress  and  the  Southern  Tariff  Association  indorsing  his 
claims,  also  a  letter  from  the  American  consul  at  Calcutta  giving 
wages  at  Indian  mica  mines. 

Hearings :  Pages  1455-1459. 

Witness :  Mr.  J.  E.  Burleson,  representing  miners  of  mica. 

Costs  and  selling  prices. — Wages  in  the  South  to-day  are  about  $3 
a  day,  as  compared  with  $1.50  before  the  war. 

Size  of  industry. — In  addition  to  the  fields  developed  at  present, 
several  counties  in  Georgia  are  very  rich  in  mica.  Witness  had 
opened  up  about  six  mines  there.  The  United  States  can  supply  all 
domestic  needs  under  adequate  protection. 

Rates  suggested. — Same  as  requested  by  Mr.  W.  Vance  Brown. 
This,  the  witness  stated,  "  will  not  protect  us,  but  it  will  probably  put 
us  on  our  feet  so  we  can  operate."  In  a  letter  to  the  committee,  dated 
September  9,  1921,  the  witness  asks  for  "  10  cents  per  pound  specific 
on  all  unmanufactured  or  rough-trimmed  mica  and  30  per  cent  ad 
valorem." 


116  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

In  a  letter  addressed  to  the  committee,  the  witness's  company  (the 
J.  E.  Burleson  Mica  Co.)  refers  to  a  letter  dated  March  8,  1921, 
from  the  American  consul  at  Calcutta,  India,  to  the  Asheville  Mica 
Co.,  of  Biltmore,  N.  C.  The  letter  gives  the  wages  paid  by  one 
firm  in  India  for  mining  and  preparing  mica,  exchange  being  as- 
sumed at  par. 

Mining  :  Per  day. 

Carpenters  and   fitters  _____________________________________  $0.  18-$0.  23 

Men   coolies   ______________________________________________      .  09-      12 


Women  coolies  ____________________________________________  .  05- 

Boy   coolies  _______________________________________________  .  03- 

Preparation  : 

Cutters    __________________________________________________  .  07- 

Splitters    -------------------------------------------------  .  04- 


Sorters  ___________________________________________________       .  09- 

In  addition  to  this  Indian  labor,  they  employ  Anglo-Indians  as 
assistants  at  the  mines,  at  salaries  ranging  from  60  to  200  rupees 
per  month. 

Another  firm  states  that  "their  labor  receives  a  maximum  of  8 
annas  per  day." 

Hearings  :  Pages  1459-1460. 

Witness  :  Mr.  B.  C.  Grindstaff,  representing  miners  of  mica. 

Remarks.  —  Witness  explained  that,  following  a  conference  between 
miners  and  manufacturers,  it  had  been  agreed  to  substitute  the  rates 
proposed  in  a  letter  of  August  19,  1921,  on  pages  1454-1455. 

Mica  unmanufactured  or   rough  trimmed  only, 

valued  at  not  above  30  cents  per  pound  _______  10  cents  per  pound  plus  30  per 

cent  ad  valorem. 

Above  30  cents?  per  pound  —  __.30  per  cent  ad  valorem. 

Cut,  stamped,  and  punched  mica  ________________  20  cents  per  pound  plus  60  per 

cent  ad  valorem. 
Mica  splittings  _________________________________  30  per  cent. 

Built-up  mica  and  all  manufactures  of  mica  ______  60  per  cent. 

Mica  diaphragms  ------------------------------  10  cents  each  plus  60  per  cent. 

Crude,  raw  scrap,  and  refuse  fit  only  for  grinding-  2  cents  per  pound. 
Ground,  flake,  or  dust  mica  _____________________  4  cents  per  pound. 

(Brief  signed  by  T.  E.  Burleson,  Tar  Heel  Mica  Co.,  D.  F.  Vance, 
Asheville  Mica  Co.,  B.  C.  Grindstaff.) 

Hearings  :  Pages  1448-1451. 

Witness  :  Mr.  James  L.  Frazee,  representing  miners  and  manufac- 
turers of  mica. 

Comparability.  —  American  mica  is  found  in  all  grades,  and  can  be 
used  for  all  purposes  for  which  the  Indian  mica  is  satisfactory. 

Rates  suggested.  —  Mica  in  sheets,  valued  at  up  to  30  cents,  iO  cents 
per  pound  ;  all  valued  above  that,  30  per  cent  ad  valorem. 

Witness  bases  his  argument  on  the  fact  that  under  present  condi- 
tions domestic  miners  can  not  afford  to  trim  and  grade  the  product, 
and  thus  obtain  maximum  returns  for  their  work;  they  are  able  to 
receive  but  little  or  no  return  for  the  small  sizes  and  scrap.  A  duty 
as  proposed  would  permit  the  miner  to  grade  his  product  and  sell  it 
for  the  maximum  returns.  Witness  produced  a  specimen  of  crude 
North  Carolina  mica  from  which  he  had  obtained  a  large  number  of 
parts  trimmed  to  specified  sizes  and  valued  all  the  way  from  30  cents 
to  $7  per  pound.  The  crude,  unclassified  material  is  valued  at  50  cents 
per  pound. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  117 

Hearings :  Pages  1460-1463. 

Witness :  Mr.  James  I.  Brereton,  representing  the  Columbia  Graph- 
ophone  Manufacturing  Co. 

^  Costs  and  selling  prices. — Witness  quoted  from  Ways  and  Means 
Committee  hearings,  page  551,  Part  I,  Schedule  I,  statements  of  do- 
mestic mica  diaphragm  manufacturer's  to  the  effect  that  diaphragms 
23%  inches  in  diameter  cost  them  20  cents  each.  The  witness's  best 
quotation  from  foreign  manufacturers  was  27.8  cents  per  diaphragm, 
laid  down  in  Xewr  York.  No  deliveries  were  made,  and  the  order  was 
canceled.  Domestic  manufacturers  at  this  time  quoted  27  cents,  or 
0.8  cents  per  diaphragm  below  the  foreign  manufacturer. 

Size  of  industry. — Witness  maintained  that  the  production  of  high- 
grade  mica  in  the  United  States  is  not  and  can  never  be  sufficient  to 
supply  the  domestic  demand  for  this  quality  of  product. 

Comparability. — Domestic  mica  is  variable  in  quality,  and  only  a 
very  small  proportion  of  the  domestic  production  is  suitable  for  the 
manufacture  of  diaphragms ;  the  balance  contains  flaws  such  as  bub- 
bles, waves,  etc.,  which  render  the  material  unfit  for  such  use.  Where 
domestic  mica  is  free  from  these  defects  it  is  just  as  suitable  for  dia- 
phragms as  the  foreign.  Witness  quotes  from  the  brief  of  diaphragm 
manufacturers,  page  556  of  Ways  and  Means  Committee  hearings,  to 
the  effect  that  the  output  of  domestic  mines  is  entirely  inadequate  for 
supplying  demands  of  the  home  industry  for  diaphragms. 

Rates  suggested. — The  duty  should  not  be  greater  than  under  the 
Underwood-Simmons  Act.  The  rate  proposed  by  the  mica  manu- 
facturers, 10  cents  specific  duty  and  60  per  cent  ad  valorem,  would 
mean  an  addition  of  22  cents  to  the  stated  cost  of  20  cents,  or  a  pro- 
tection of  110  per  cent.  Under  duties  as  high  as  this  the  Government 
would  obtain  no  additional  revenue,  because  the  mica  would  be  im- 
ported in  the  rough  and  manufactured  here.  Domestic  manufac- 
turers would  add  this  duty  to  the  present  cost.  They  are  now,  as 
shown,  in  a  position  to  compete  favorably  with  foreign  manufacturers. 

Hearings:  Pages  1463-1468. 

Witness :  Mr.  Marion  Dorian,  representing  the  Columbia  Grapho- 
phone  Manufacturing  Co. 

Size  of  industry. — The  witness  quoted  Mr.  Storrs  to  the  effect  that 
domestic  mica  is  entirely  unsatisfactory  for  the  manufacture  of 
diaphragms.  The  raw  material  is  supplied  from  India.  Argentina, 
and  Brazil.  Indian  is  the  best.  Quoting  from  the  Geological  Sur- 
vey, witness  stated  that  the  development  of  American  mica  mines  had 
been  insignificant  even  under  war  conditions ;  he  quoted  further  from 
a  statement  of  Mr.  Herbert  Smith,  of  the  American  Mining  Congress, 
that  lack  of  development  may  be  due  to  the  fact  that  American  miners 
do  not  use  sufficient  care  in  selecting,  grading,  and  trimming  their 
product.  He  had  never  been  able  to  obtain  domestic  mica  in  sufficient 
quantities  to  meet  the  demands. 

Comparability. — Witness  agrees  with  Mr.  Brereton  that  domestic 
mica  is  entirely  unsuitable  for  use  in  diaphragms  and  that  the  foreign 
product  must  be  imported  to  supply  the  demand. 

Rates  suggested. — The  rates  proposed  by  the  manufacturers  and 
miners  are  out  of  all  bounds  of  reason ;  the  one  certain  result  would 
be  that  the  Government  would  get  no  revenue  whatever  from  this 
source. 

77134—22 9 


118  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456. 

Remarks. — The  -witness  was  granted  the  privilege  of  filing  a  brief 
(see  page  1468)  drawing  attention  to  the  purchase  by  the  Columbia 
Graphophone  Manufacturing  Co.,  in  1920,  of  over  1.000.000  phono- 
graph diaphragms,  made  by  American  manufacturers  from  imported 
mica. 

Hearings :  Pages  1465-1468. 

Witness :  The  Columbia  Graphcphone  Manufacturing  Co.    ( Brief. ) 

Costs  and  selling  prices. — Same  as  given  in  testimony  by  the  com- 
pany's witnesses.  Domestic  mica  sells,  grade  by  grade,  at  lower  prices 
than  the  foreign. 

Size  of  industry. — It  is  cited  that  Mr.  Storrs.  Mr.  Smith,  of  the 
American  Mining  Congress,  the  United  States  Geological  Survey, 
and  diaphragm  manufacturers  all  conceded,  when  before  the  House 
committee,  that  mica  mining  was  not  stimulated  to  any  extent  by  war 
prices. 

Comparability. — The  brief  cites  the  testimony  of  Mr.  Storrs  and 
Mr.  Frazee  before  the  Ways  and  Means  Committee  to  the  effect  that 
domestic  mica  is  not  suitable  for  many  purposes.  The  high  duties 
now  requested  by  these  gentlemen  are  the  result  of  conference  with 
miners,  and  the  consumer  is  left  to  shift  for  himself. 

Rates  suggested. — The  same  <is  imposed  under  the  Underwood- 
Simmons  Act,  it  being  absolutely  necessary  to  import  mica.  Addi- 
tional duties  would  not  benefit  producers,  but  would  place  hardships 
on  consumers ;  importations  would  be  curtailed  and  the  Government 
would  be  a  large  loser  of  revenue. 

Hearings:  Pages  1426-1430. 
Witness :  Mr.  Charles  P.  Storrs. 

Size  of  industry. — Insufficient  to  supply  domestic  demand  in  all 
desired  qualities. 
Rates  suggested. — 

Per  cent 
ad  valorem. 

Unmanufactured  mica 17 

Mica    splittings— 19 

Mica,  cut  or  punched,  etc 34 

Ground  mica 20 

Remarks. — Seventeen  per  cent  on  unmanufactured  mica,  American 
valuation,  works  out  a  little  higher  than  25  per  cent  on  foreign  valua- 
tion, and  20  per  cent  (American  valuation)  on  splittings  a  little 
higher  than  30  per  cent  (foreign  valuation).  Splittings  are  raw 
material  for  the  mica-board  manufacturers.  Sixty  per  cent  of  rough 
mica  used  must  be  imported.  The  duty  on  manufactured  mica  should 
be  double  that  on  the  crude  product  to  give  ample  protection. 

Hearings:  Pages  1431-1438. 

Witness :  Mr.  Lewis  McCarthy,  representing  the  Macallen  Co.  and 
15  other  manufacturers,  miners,  and  dealers  in  mica. 

Costs  and  selling  prices. — Xo  reference  except  that,  the  price  of 
rough  mica  plates  varying  directly  with  the  size  and  quality,  the  pro- 
posed 4  cents  per  pound  specific  duty  on  mica  plates  may  amount  to 
as  high  as  40  per  cent  ad  valorem  and  on  other  grades  might  be 
negligible. 

Size  of  industry. — The  mine  production  is  insufficient  and  unsuit- 
able for  supplying  the  domestic  demand.  Exact  figures  of  number 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  119 

of  mines  are  not  available.  Witness  estimates  that  several  thousand 
persons  are  employed  in  the  mica  industry,  mostly  in  the  manufac- 
turing end.  Fifteen  mica  manufacturers  represent  85  or  90  per  cent 
of  the  total  production  of  manufactured  products. 

Comparability. — Mica  splittings,  which  constitute  at  least  80  per 
cent  of  all  imported  manufactures  of  mica,  are  not  produced  in  the 
United  States  because  the  grade  of  labor  necessary  is  not  available 
here.  In  electrical  work  Canadian  mica  is  absolutely  necessary  for 
some  uses  while  there  is  some  work  for  which  the  Indian  or  American 
mica  is  suitable. 

Rates  suggested. — Mica  valued  at  not  more  than  15  cents  per 
pound,  6  cents  per  pound ;  valued  above  15  cents  per  pound,  30  per 
cent  ad  valorem  •  mica  splittings,  30  per  cent  ad  valorem ;  mica  plates 
and  built-up  mica  and  all  manufactures  of  mica,  60  per  cent  ad 
valorem ;  ground  mica,  25  per  cent  ad  valorem.  The  exact  rates  de- 
cided upon  do  not  interest  the  manufacturer  except  that  the  rate  on 
manufactures  of  mica  should  be  double  that  on  splittings  and  un- 
manufactured mica. 

Remarks. — In  the  Underwood- Simmons  tariff  and  in  the  proposed 
bill  no  differential  is  provided  between  mica  splittings,  which  are  raw 
material,  and  manufactures  of  mica  made  from  this  product.  Com- 
petition comes  from  Germany  and  Japan  and  the  Indian  producers 
have  signified  their  intention  of  manufacturing  mica  near  the  centers 
of  production.  Thirty  per  cent  of  the  raw  mica  used  in  this  coun- 
try is  imported.  The  bulk  is  used  for  built-up  mica  products;  that 
is  to  say,  plates  composed  of  mica  films  (splittings)  cemented  to- 
gether and  built  up  under  pressure  to  any  thickness  desired.  The 
duty  on  mica  manufactures  under  the  Underwood  tariff  is  not  suf- 
ficient to  protect  the  industry,  but  no  competition  was  felt  because 
the  war  cut  off  importation. 

Hearings :  Pages  1438-1448. 

Witness:  Mr.  C.  W.  Jefferson,  representing  the  Mica  Insulator  Co., 
New  York  City.  ^ 

Costs  and  selling  prices. — The  character  of  the  labor  required, 
rather  than  the  wages  paid,  necessitates  the  manufacture  of  splittings 
in  India.  American  labor  is  not  adapted  to  this  tedious,  patient  hand 
operation,  and  no  satisfactory  machine  for  splitting  mica  has  been 
developed.  Indian  labor  is  "  one-fifth  of  the  price  of  the  poorly  paid 
labor  in  Canada."  Domestic  mica  is  produced  in  many  cases  by 
farmers  who  mine  small  amounts  during  their  spare  time.  In  the 
mica  manufacturing  establishments  the  wages  paid  to  girls  and 
women  average  about  $20  a  week,  and  to  men  from  $30  to  $40  a  week. 
Wages  constitute  one-half  the  value  of  manufactured  mica  articles. 

Size  of  industry. — The  mica  industry  in  the  United  States,  includ- 
ing mining  and  manufacturing,  employs  from  4.000  to  5.000  men. 
The  value  of  the  manufactured  article  is  approximately  $4,000,000. 
The  Mica  Insulator  Co.  is  capitalized  at  $125,000  and  has  an  invest- 
ment of  about  $600.000.  It  has  paid,  and  is  paying,  12  per  cent  on 
the  capital  stock.  The  United  States  consumes  72  per  cent  of  the 
world's  production  of  mica.  India,  the  United  States,  and  Canada 
supply  98  per  cent  of  the  production  of  sheet  mica.  Sheet  mica  pro- 
duction in  the  United  States  in  1917  amounted  to  1,276,533  pounds, 


120  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

valued  at  $753,874.  About  50  per  cent  of  the  mica  consumed  in  this 
country  is  imported  from  abroad. 

Comparability. — The  Mica  Insulator  Co.  has  been  unable  to  obtain 
mica  splittings  of  domestic  manufacture.  Some  splittings  have  been 
obtained  from  Canada  but  the  grade  is  not  as  uniform  as  that  ob- 
tained from  India. 

Rates  suggested. — Witness  favors  eliminating  the  specific  rates  and 
making  the  duty  on  manufactures  of  mica  double  that  on  crude  mica 
or  mica  splittings. 

Witness:  The  Asheville  Mica  Co.,  Biltmore,  N.  C.  (Brief;  no  ap- 
pearance at  hearings.) 

The  brief  refers  to  a  communication  from  the  United  States 
customs  service,  in  which  the  company  is  informed  that  mica  refuse, 
or  scrap,  fit  only  for  grinding  purposes,  is  dutiable  as  waste,  not 
specially  provided  for.  Under  H.  R.  7456  it  would  be  similarly  duti- 
able, and  the  company  requests  that  mica  waste  be  specially  pro- 
vided for  in  the  paragraph  pertaining  to  mica.  The  material  is  now 
dealt  with  in  paragraph  1456  of  the  bill. 

Witnesses:  Fourteen  manufacturers,  dealers,  and  miners  of  mica. 
(Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Mica  valued  at  not  above  15  cents  per  pound,  6 
cents  per  pound;  valued  at  above  15  cents  per  pound,  30  per  centum 
ad  valorem;  mica  splittings,  30  per  centum  ad  valorem;  mica  plates, 
and  built-up  mica  and  all  manufactures  of  mica,  or  of  which  mica 
is  the  component  material  of  chief  value,  60  per  centum  ad  valorem ; 
ground  mica,  25  per  centum  ad  valorem.  These  rates  would  give 
more  revenue  to  the  Government  and  more  protection  to  the  American 
manufacturer  and  miner  than  the  rates  in  the  bill. 

Mica  splittings  are  the  raw  material  from  which  manufactures  of 
mica  are  produced.  An  equal  duty  on  the  raw  material  and  the  fin- 
ished product  is  inequitable,  and  does  not  give  protection  to  the  manu- 
facturers ;  it  would  be  impossible  for  producers  of  the  finished  prod- 
ucts to  compete  with  the  foreign  product  under  these  conditions. 

PARAGRAPH  208. — MANUFACTURED  MICA. 


FAVOEINQ  LOWEB  DUTIES  : 

The  Victor  Talking  Machine  Co.,  Camden,  N.  J.    (Brief.) 
REQUESTING  RECLASSIFICATION  : 

The  Rogers-Pyatt  Shellac  Co.,  New  York  City.     (Brief.) 

Witness:  The  Victor  Talking  Machine  Co.  (Brief;  no  appearance 
at  hearings. ) 

The  company  is  a  large  consumer  of  mica  for  diaphragms  for  talk- 
ing machines. 

Costs  and  selling  prices. — During  the  war  period,  when  the  foreign 
market  was  closed  to  the  American  consumer,  the  prices  of  domestic 
mica  diaphragms  for  talking  machines  ranged  from  40  to  90  cents 
each,  according  to  size.  Now  that  the  foreign  market  is  again  open, 
prices  are  from  10  to  30  cents  eachj  even  these  lower  levels  being 
three  times  the  lowest  pre-war  prices. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   1456.  121 

Under  the  present  tariff,  the  company  finds  that  the  prices  paid 
during  a  number  of  years  for  imported  mica  diaphragms,  plus  the 
duties,  have  averaged  the  same  as  those  quoted  by  American  manu- 
facturers. At  the  present  time,  however,  the  company  has  a  running 
contract  with  an  American  maker  at  a  price,  irrespective  of  duty, 
equal  to  that  named  in  its  contracts  with  foreign  makers.  With  the 
amount  of  duty  added  the  foreign  manufacturers'  prices  are  consider- 
ably higher  than  the  American. 

If  the  proposed  duty  is  enacted,  it  will  so  increase  the  price  of 
imported  mica  diaphragms  that  importation  will  cease.  If  the  Ameri- 
can makers  should  take  advantage  of  the  opportunity  thus  afforded 
to  increase  prices,  the  use  of  mica  for  diaphragms  for  talking  ma- 
chines will  ber  discarded  in  favor  of  substitutes.  Such  an  increase  in 
the  price  of  domestic  diaphragms  is  to  be  expected  in  view  of  past 
experience. 

Comparability. — Years  of  experience  have  taught  this  company 
that  satisfactory  diaphragms  can  not  be  made  from  domestic  mica. 

Rates  suggested. — The  existing  rates  are  equitable  and  offer  suffi- 
cient protection  to  the  domestic  manufacturer. 

Remarks. — The  Victor  Talking  Machine  Co.  initiated  the  manu- 
facture of  mica  diaphragms  in  the  United  States,  and  the  first  satis- 
factory domestic  product  made  was  for  its  orders. 

Witness:  The  Rogers-Pyatt  Shellac  Co.,  New  York  City,  request- 
ing modifications.  (Brief;  no  appearance  at  hearings.) 

&ize  of  industry. — There  are  not  more  than  15  mica  mines  in  the 
United  States.  Some  of  these  are  abandoned,  as  no  good  mica  could 
be  produced.  The  great  bulk  of  so-called  mica  miners  are  southern 
farmers  who  have  a  patch  of  mica  on  their  farms,  from  which  they 
dig  a  few  pounds  at  their  leisure  and  sell  to  the  large  jobbers,  such 
as  the  Asheville  Mica  Co.  The  small  amount  of  suitable  mica  pro- 


duced in  this  country  is  negligible. 
Comparability. — The  quality  of 


mica  produced  in  this  country  is 

unsuitable  for  at  least  75  per  cent  of  the  requirements  of  the  largest 
manufacturers.  Most  of  the  domestic  mica  is  suitable  only  for  grind- 
ing and  for  small-size  washers  and  disks.  The  company  has  placed 
orders  at  one  time  for  2,000  cases  of  mica  splittings,  which  could  not 
be  produced  in  the  United  States  in  years,  and  then  would  be  of 
inferior  quality. 

Hates  suggested. — Manufactured  mica  should  be  protected  by  an 
increased  duty,  which,  except  as  regards  mica  splittings,  should  be 
double  the  rate  on  uncut  mica  and  mica  splittings.  An  increase  on 
raw  mica  and  mica  splittings  would  prevent  American  manufacturers 
from  competing  in  export  trade. 

Remarks. — The  mica  committee  that  appeared  at  Washington  did 
not  represent  the  industry,  as  the  Rogers-Pyatt  Co.,  one  of  the  largest 
importers,  was  not  represented,  and  it  is  not  thought  that  others  of 
the  largest  importers  were  authoritatively  represented,  among  these 
being  the  Westinghouse  Electric  &  Manufacturing  Co.  and  the  Gen- 
eral Electric  Co. 

The  brief  is  in  the  form  of  a  letter  addressed  to  the  Senate  Com- 
mittee on  Finance,  covering  copy  of  a  letter  to  United  States  ap- 
praisers' stores,  New  York  City. 


122  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

PARAGRAPH  209. — TALC  AND  SOAPSTONE. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  W.  C.  Boswell,  representing  the  Talc  and  Soapstone  Producers'  Associa- 
tion of  America ;  address,  Baltimore,  Md. 

,     Mr.  Michael  Doyle,  representing  the  International  Pulp  Co.,  address,  Gouv- 
erneur,  K  Y. 

FAVORING  LOWER  DUTIES  : 

Mr.  R.  N.  Lockwood,  representing  the  Talcum  Puff  Co.,  Brooklyn,  N.  Y. 
L.  A.  Salomon  &  Bro.,  New  York  City.     (Brief.) 

Hearings :  Pages  1468-1472. 

Witness :  Mr.  W.  C.  Boswell,  representing  the  Talc  and  Soapstone 
Producers'  Association  of  America. 

Costs  and  selling  prices. — Chinese  massive  talc  can  be  delivered  at 
the  ports  of  Newchwang  or  Darien  for  $9  per  ton  in  sacks  or  $7.25 
in  bulk.  Against  this,  domestic  high-grade  material  costs  $20  a  ton 
to  cut  out.  Cut  into  cakes,  the  production  cost  is  $40  per  ton;  into 
small  blocks,  $100  per  ton. 

Size  of  industry. — The  total  consumption  of  massive  talc  in  the 
United  iStates  is  1,500  tons  per  year.  The  production  of  all  forms 
of  talc,  including  pulverized  material,  was  186,000  tons  in  1915  and 
218,000  tons  in  1917.  There  were  33  producing  mines  scattered  over 
Maryland,  Virginia,  North  Carolina,  Georgia,  Vermont,  and  Cali- 
fornia. 

Comparability. — Foreign  material  is  comparable  to  the  domestic 
in  every  way. 

Rates  suggested. — The  rates  in  paragraph  209,  House  bill  7456,  are 
just  one-half  what  is  required  to  operate  against  the  imported  ma- 
terial; they  should  not  be  reduced,  and  American  valuation  should 
be  used  on  all  imports. 

Hearings:  Pages  1475-1481. 

Witness:  Mr.  Michael  Doyle,  representing  the  International 
Pulp  Co. 

Costs  and  selling  prices. — Labor  in  the  American  mills  to-day 
ranges  from  $4  to  $5,  and  before  the  war  was  from  $2  to  $3.50  per 
day  for  8  hours'  work.  European  wages  are  $1.80  to  $3  per  day,  and 
Japanese  33£  cents  per  day,  with  16^  cents  for  women,  for  11  hours' 
wor.k.  Freight  charges  on  talc  from  northern  New  York  to  seaboard 
points  are  35  cents  per  100  pounds ;  the  rates  for  goods  from  abroad 
are  only  one-third  of  this.  Foreign  material  shipments  as  ballast 
are  a  menace  and  injury  to  the  American  manufacturer.  Thus,  im- 
portations of  French  talc  valued  abroad  at  from  $5.82  to  $4.37  per 
ton  have  been  made  when  worth  in  this  market  $20  to  $40  a  ton. 
Duty  levied  on  American  valuation  would  give  greater  protection 
and 'yield  increased  revenue  to  the  Government. 

Size  of  industry. — Production  of  talc  in  1918  was  191,477  tons, 
valued  at  $2.089.960.  There  were  30  producers,  employing  about 
2,500  persons.  The  number  of  employees  in  the  industry  using  talc 
and  soapstone  is  in  excess  of  a  quarter  of  a  million.  Talc  is  used  in 
the  paper,  paint,  rubber,  refining,  textile,  linoleum,  and  other  in- 
dustries. Investment  in  the  business  is  $8,000,000.  In  1920,  domestic 
production  amounted  to  220,000  tons,  and  imports  to  24,000  tons. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  123 

Comparability. — New  deposits  in  eastern  United  States  and  in 
California  are  able  to  produce  qualities  of  talc  equal  to  the  best 
made  abroad  and  entirely  satisfactory  for  all  the  requirements  of 
the  trade  in  the  United  States. 

Rates  suggested. — 

Crude  talc *  cent  per  pound. 

Ground,  washed,  powdered,  or  pulverized 1  cent  per  pound. 

Talc,  cut  or  sawed,  in  blocks,  etc 2  cents  per  pound. 

Manufactures  of  talc: 

When  not  decorated 50  per  cent. 

When  decorated 60  per  cent. 

These  rates  are  designed  to  equalize  differences  in  labor  cost  and 
transportation. 

Hearings :  Pages  1472-1475. 

Witness :  Mr.  R.  N.  Lockwood,  representing  the  Talcum  Puff  Co. 

Costs  and  selling  prices. — The  cost  of  high-grade  powdered  talc 
for  toilet  use  is  $20  per  ton  at  the  mine.  The  selling  price  of  talc 
for  toilet  preparations  is  $20  per  ton  at  the  mine,  either  in  Canada  or 
in  North  Carolina. 

Size  of  industry. — Manufacturers'  of  toilet  preparations  require  a 
particularly  high-grade  powdered  talc  of  exceptionally  white  color 
and  possessing  a  degree  of  "  slip  "  which  is  difficult  to  obtain  in  the 
domestic  product.  Witness  knows  of  only  one  deposit  in  North  Caro- 
lina which  is  suitable,  and  this  would  be  used  but  for  difficulties  in 
production ;  the  supply  is  not  sure. 

Comparability. — Toilet  talc  is  entirely  different  from  the  ordinary 
grades  of  talc  used  as  fillers  for  paper  and  for  other  general  pur- 
poses. While  it  is  true  that  the  domestic  supply  of  ordinary  grades 
is  sufficient  to  supply  ordinary  demands,  there  is  an  insufficient  do- 
mestic supply  of  the  high  grades  such  as  the  witness  requires  in  his 
business. 

Rates  suggested. — Not  materially  different  from  15  per  cent  ad 
valorem  on  powdered  talc,  on  the  ground  that  powdered  talc  suit- 
able for  toilet  use  is  not  produced  in  sufficient  quantities  in  the. 
United  States.  Different  classifications  are  suggested. 

Witness:  L.  A.  Salomon  &  Bro.,  New  York  City.  (Brief;  no  ap- 
pearance at  hearings.) 

Costs  and  selling  prices. — The  brief  includes  an  extract  from  a 
letter  of  January  18,  1921.  from  George  H.  Gillespie  &  Co.,  Madoc, 
Ontario,  the  largest  producers  of  Canadian  talc,  stating  that  the 
minimum  wages  paid  in  Canada  are  $5  per  day  per  8-hour  day  in 
mines  and  $4.65  per  10-hour  day  in  mills.  The  letter  points  out  that, 
according  to  a  witness  before  the  Ways  and  Means  Committee, 
American  wages  per  day,  number  of  hours  not  stated,  were  $5  under- 
ground and  $4  in  mills.  Hence,  Canadian  wages  at  that  time  were 
actually  higher  than  those  paid  by  that  witness  and  probably  higher 
than  those  generally  paid  in  the  talc  industry  in  the  United  States. 
The  letter  gives  the  average  cost  of  producing  a  ton  of  Canadian  talc 
in  1920,  according  to  the  Gillespie  Co.'s  books,  as  $12.  Canadian 
costs  are  high,  since  plant  machinery  costs  more  there  than  in  the- 
United  States,  from  which  most  of  it  is  imported,  and  the  severe 
Canadian  climate  also  adds  to  the  cost  of  production.  During  1920 
the  fair  market  values  f.  o.  b.  Madoc,  Ontario,  including  bags,  were, 


124  DIGEST   OF   TARIFF    HEARINGS,   H.   R-.   7456. 

AA1-F,  $22  per  ton ;  No.  1  grade,  $16.50  per  ton ;  "  S  "  grade,  $12 
per  ton,  whereas  the  average  value  of  the  American  product  was 
$10.75  per  ton,  or  less  than  the  cost  of  production  in  Canada.  Cana- 
dian talc  is  usually  sold  in  United  States  currency  and  is  so  entered 
for  customs  purposes.  Of  the  lowest  grade  only  about  1,000  tons 
per  annum  are  exported  to  the  United  States. 

Size  of  industry. — Vermont  is  the  largest  talc-producing  State,  the 
output  amounting,  in  1920,  to  more  than  90.000  tons.  The  industry 
in  California  is  comparatively  new  and  has  made  steady  progress 
in  recent  years,  indicating  that  the  industry  is  amply  protected  and 
able  to  take  care  of  itself.  In  1918,  the  latest  year  for  which  statis- 
tics are  available,  the  production  in  California  amounted  to  10.3G1 
tons,  or  about  150  per  cent  more  than  in  1917,  when  the  production 
was  only  4,152  tons. 

Comparability. — American  talc  production  can  be  divided  into  four 
distinct  classes,  namely:  (1)  The  talc  produced  in  New  York  State 
(Gouverneur),  which  is  an  asbestiform  mineral  often  known  as 
asbestine;  (2)  Vermont  talc;  (3)  talc  produced  in  the  Southern 
States;  and  (4)  Californian  talc.  The  New  York  talc  is  fibrous  and 
has  not  the  slippery  feeling  characteristic  of  the  crystalline  grades; 
it  is  used  principally  as  a  filler  for  paper.  Prior  to  the  war  large 
quantities  of  this  material  were  shipped  to  Europe.  It  is  not  suited 
for  toilet  purposes. 

The  Vermont  product  is  inferior  in  color,  although  possessing  a 
fair  amount  of  slipperiness.  It  is  extensively  used  as  a  filler  for 
paper,  textiles,  paints,  rubber,  etc.,  and  also  for  roofing  purposes. 
It  is  not  white  enough  to  find  extensive  use  in  toilet  preparations. 
The  only  talc  imported  which  competes  in  any  way  with  that  pro- 
duced in  Vermont  is  No.  2  French  talc,  but  the  importation  of  the 
latter  in  1920  amounted  to  only  about  1,500  tons.  Except  possibly 
at  points  near  the  seaboard,  imported  talc  does  not  compete  with 
Vermont  talc. 

Southern  talc  as  produced  in  Virginia.  North  Carolina,  Georgia, 
Maryland,  and  Pennsylvania  is  of  miscellaneous  character.  A  large 
portion  is  sold  in  the  form  of  powdered  soapstone  for  use  in  foun- 
dries and  for  all  purposes  for  which  foreign  talc  does  not  compete. 
Considerable  quantities  are  also  worked  up  into  slabs  for  washtubs, 
insulation,  and  similar  purposes. 

Most  of  the  Californian  talc  is  of  fair  quality  and,  though  inferior 
to  the  best  imported  talc,  answers  the  requirements  of  many  manu- 
facturers of  toilet  preparations.  Practically  all  of  the  foreign  talc 
that  comes  into  this  market  is  of  superior  quality  and  supplements 
the  American  production.  It  differs  in  both  chemical  and  physical 
properties, 

Remarks. — In  the  last  two  years  imports  have  averaged  between 
15.000  and  20,000  tons  annually,  of  which  Canada  furnished  about 
one-half,  the  remainder  coming  from  Italy  and  France.  The  latter 
country  furnished  about  2,000  tons.  'The  total  importations  of  talc 
amount  to  less  than  10  per  cent  of  the  total  production  in  the  United 
States. 

Rates  suggested. — A  reduction  in  the  proposed  duty  from  one- 
half  a  cent  per  pound  to  20  per  cent  ad  valorem.  It  is  pointed  out 
that  the  specific  rate  works  an  especial  hardship  upon  the  cheaper 
grades  of  talc,  as  for  example,  second-quality  Canadian  talc  which, 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  125 

under  the  present  duty  (act  of  1913)  of  15  per  cent,  pays  $2.31  per 
thousand  kilos,  would*  pay  $11.02  under  H.  R.  7456.  In"  the  case  of 
the  high-grade  Italian  talc,  the  duty  upon  which  is  now  $5.70,  the 
increase  under  the  Fordney  bill  would  not  be  quite  so  serious. 
While,  on  general  principles,  the  writers  of  the  brief  favor  specific 
rates  of  duty,  they  can  not  see  how  such  a  rate  can  be  fairly  applied 
except  upon  a  graded  scale  based  on  the  different  types  of  talc. 

PARAGRAPH  211. — GRAPHITE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Herbert  B.  Johnson,  representing  the  Southwestern  Graphite  Co. 

Mr.  George  A.  Sharpe,  representing  Alabama  graphite  producers. 

Mr.  Floyd  Weed,  representing  graphite  producers;  address,  Birmingham, 

Ala. 
Mr.  T.  H.  Aldrich,  Birmingham,  Ala.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.  George  F.  Pettinos,  representing  himself,  importer  of  graphite ;  address, 

Philadelphia,  Pa. 

Mr.  Charles  E.  Kern,  representing  crucible  manufacturers. 
Mr.  H.  M.  Riddle,  representing  manufacturers  of  graphite  for  foundry  fac- 
ings, stove  polishes,  and  other  purposes ;  address,  Asbury,  N.  J. 
Mr.  L.  S.  Brown,  representing  the  Springfield  Facing  Co.,  Springfield,  Mass. 
Mr.  Earl  J.  Davis,  representing  United  States  Graphite  Co. 

Hearings :  Pages  1486-1513. 

Witness :  Mr.  Herbert  B.  Johnson,  representing  the  Southwestern 
Graphite  Co. 

Costs  and  selling  prices. — American  graphite  deposits,  although 
widespread  occurrences,  are  low  in  grade,  that  is  to  say,  the  percent- 
age of  graphite  in  the  rock  mined  is  comparatively  small  (6  to  8  per 
cent).  In  Ceylon  and  Madagascar,  graphite  occurs  in  largt  veins  of 
comparatively  pure  mineral,  so  that  shipping  grades  can  be  sorted 
by  hand  at  very  small  expense — wages  of  60  or  70  cents  per  week. 
American  producers,  on  the  other  hand,  must  install  expensive 
mining,  excavating,  and  concentrating  machinery,  in  order  that  they 
may  handle  the  larger  tonnage  involved  at  a  unit  cost  permitting 
them  to  obtain  the  maximum  efficiency.  American  ore  contains  only 
70  to  80  pounds  per  ton,  while  in  Ceylon  and  Madagascar  600  to  700 
pounds  per  ton  is  by  no  means  uncommon.  Simple  hand  sorting  in 
Ceylon  and  Madagascar  brings  their  graphite  into  the  same  state  as 
the  American  graphite  after  mining,  milling,  and  refining  operations 
requiring  plants  costing  from  $175,000  to  $250,000  for  an  average 
production  and  employing  both  skilled  and  common  labor.  Graphite 
costs  average,  in  the  more  efficient  plants  to-day,  about  4  cents  per 
pound,  whereas  the  imported  product  is  being  dumped  on  the  market 
for  2  cents.  Average  American  costs  may  be  divided  as  follows,  per 
ton  of  ore  mined,  containing  54  pounds  of  recoverable  graphite :  Min- 
ing. $1.20;  milling,  $1.10;  refining,  $0.90:  a  total  of  $3.20  for  52 
pounds,  or  5.92  cents  per  pound.  Add  to  this  freight  and  handling 
charges  of  1|  cents  per  pound  and  taxes  and  other  overhead  charges 
of  1.34  cents  per  pound,  and  the  total  cost  per  pound  of  graphite  be- 
comes 8.76  cents. 


126 


DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 


The  following  table  shows  the  serious  handicap  on  American  pro- 
duction in  the  item  of  labor : 

Comparison  of  labor  costs  per  week. 


United 
States. 

England. 

Japan. 

Germany. 

Ceylon. 

Mada- 
gascar. 

Process  men  

$31.03 

$18.  17 

$4.90 

$6.34 

$1.98 

$3.96 

Common  labor  .  . 

18.15 

13.  32 

4  50 

5.52 

0  60-.  70 

1.40 

Domestic  manufacturers  had  to  contend,  in  addition,  with  high 
freight  rates.  Statistics  show  that  while  the  freight  rate  from 
Alabama  to  New  York  is  $15  the  rate  from  Ceylon  to  New  York  is 
only  $7.14. 

Witness  claims  that  Ceylon  graphite  commands  a  premium  for 
crucible  manufacturing  owing  to  the  belief  on  the  part  of  American 
consumers  that  it  is  the  best  for  this  use.  American  manufacturers 
to-day  are  holding  out  for  4  cents  or  better  per  pound  on  flake, 
whereas  the  Madagascar  material  is  being  landed  for  2  cents  per 
pound.  Prewar  prices  were  in  the  neighborhood  of  3  cents  per  pound 
and  during  the  war  foreign  graphite  sold  as  high  as  30  cents  per 
pound. 

Size  of  industry. — The  American  graphite  industry  was  practically 
undeveloped  before  the  war,  although  large  deposits  of  ore  were 
known  to  exist.  During  the  war,  when  it  became  difficult  to  import 
Ceylon  and  Madagascar  graphite,  American  deposits  were  developed 
and  a  large  part  of  the  domestic  demand  was  supplied  from  Ameri- 
can sources.  Witness  claimed  that,  given  proper  protection,  Ameri- 
can producers  can  supply  a  product  suitable  for  every  use  to  which 
graphite  is  put. 

Comparability. — Consumers  claim  that  American  graphite  is  un- 
suitable for  use  in  the  manufacture  of  crucibles ;  in  opposition  to  this 
the  witness  cites  a  test  made  by  Dr.  Stull,  of  Columbus,  Ohio,  which 
showed  that  crucibles  made  from  Alabama  graphite  gave  a  total  of 
21  heats  before  failure,  whereas  the  Ceylon  gave  only  Tf  heats.  He 
also  submitted  a  letter  from  the  Electric  Refractories  Corporation  to 
the  effect  that  crucibles  made  from  American  graphite  were  averag- 
ing 85  heats  and  individual  records  of  148  heats  had  been  made. 
Witness  states  that  a  large  part  of  the  difficulty  experienced  when 
the  American  graphite  was  first  substituted  for  the  Ceylon  variety 
was  due  to  the  war  cutting  off  our  supply  of  Bavarian  bonding  clay 
and  that  the  substituted  American  product  was  inferior  and  resulted 
in  the  failure  which  attended  the  early  experiments.  (See  "Re- 
marks.") 

Rates  suggested. — Rates  ranging  from  1  to  2  cents  per  pound  on 
graphite  ores,  3  cents  per  pound  on  lump  and  chip  graphite,  and  6 
cents  per  pound  on  refined  graphite.  The  duties  to  be  in  no  case  less 
than  35  per  cent  ad  valorem. 

Remarks. — Numerous  schedules  of  prices,  freight  rates,  wages,  and 
other  data  were  given  in  the  testimony  and  accompanying  documents. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  127 

Hearings :  Pages  1522-1526. 

Witness:  Mr.  G.  A.  Sharpe,  representing  Alabama  graphite  pro- 
ducers. 

Costs  and  selling  prices. — No  data  regarding  production  costs.  A 
duty  on  crude  graphite  would  not  materially  increase  the  cost  of 
crucibles.  A  No.  70  crucble,  costing  to-day  $4.90  and  contain- 
ing 17  pounds  of  graphite,  would  cost  $1.02  additional  if  a  6  cents 
per  pound  duty  were  imposed.  This  crucible  will  stand,  if  made  from 
Ceylon  graphite,  not  more  than  30  heats.  If  made  of  American 
graphite,  an  average  of  85  heats  may  be  safely  taken. 

Size  of  industry. — At  the  call  of  the  Government  during  the  war, 
producers  in  Alabama,  where  90  per  cent  of  American  graphite  de- 
posits are  located,  greatly  expanded  production.  Two  months  after 
the  armistice  was  signed  the  embargo  against  the  importation  of  for- 
eign graphite  was  removed  and  in  the  demoralized  market  which 
followed  every  graphite  plant  in  Alabama  shut  down  and  a  great 
many  of  them  were  forced  into  bankruptcy.  These  plants  can  not 
be  reopened  under  present  unprotected  conditions.  At  the  end  of 
the  war  the  investment  in  graphite  mills  in  Alabama  was  between 
$4,000,000  and  $5,000,000  and  the  producing  capacity  had  risen  to 
over  15,000  tons  a  year. 

Comparability. — The  witness  contradicted  statements  made  by 
crucible  producers  that  domestic  graphite  is  unsuited  to  crucible 
manufacture.  He  stated  that  the  Electro  Refractories  Corporation, 
of  Buffalo,  N.  Y.,  had  produced  crucibles  made  entirely  of  Alabama 
flake  graphite  and  having  an  average  life  of  85  heats.  Witness 
maintained  that  under  these  condition  the  crucible  cost  per  pound 
of  metal  produced  is  much  less  when  Alabama  crucibles  are  used 
than  when  the  metal  is  produced  in  crucibles  made  from  Ceylon 
graphite.  He  cited  figures  showing  that  an  American  graphite 
crucible  taking  a  total  of  85  heats  will  produce  7,650  pounds  of 
melted  metal.  This  crucible  is  selling  to-day  for  $4.90  and  would 
cost  $5.92  with  the  full  suggested  tariff  of  6  cents  per  pound  added  to 
the  cost  of  ^the  graphite  content.  The  cost  of  metal  when  American 
graphite  crucibles  are  used  is,  therefore,  0.08  cents  per  pound  of 
metal  melted.  When  Ceylon  graphite  crucibles  are  used,  the  product 
during  the  life  of  a  crucible  is  only  2,700  pounds  of  metal,  equal  to 
0.18  cents  per  pound  of  metal  melted,  the  cost  of  a  Ceylon  crucible 
being  taken  as  $4.90,  as  at  present.  Witness  stated  further,  that  the 
Jonathan  Bartley  Crucible  Co.  asserted,  and  advertised  the  fact  to 
the  American  public,  that  a  crucible  made  of  American  graphite 
mixed  with  American  clay  was  superior  to  any  other  crucible.  The 
Japanese  have  been  selling  in  the  Birmingham  market  crucibles  made 
from  flake  graphite,  similar  to  the  Alabama  flake,  for  from  1  cent  to  1£ 
cents  per  number  below  the  factory  price  of  American  crucibles  made 
from  Ceylon  graphite.  The  Japanese  crucibles  stand  an  average  of 
50  per  cent  more  heat  than  do  those  made  from  the  Ceylon  material. 

Kates  suqqested. — 

i  Cents  per 

pound. 

Graphite  ores,  containing  50  per  cent  or  less  graphite__, 

Graphite  ores,  containing  over  50  per  cent  graphite- 
Lump  or  chip,  crystalline  graphite 

Flake  crystalline  graphite ^6 

Manufactures  of  graphite 

1  Of  contained  graphite  in  addition  to  other  duties. 


128  DIGEST   OF   TARIFF    HEARIXGS,   H.   R.   7456. 

Remarks. — Under  date  of  December  13.  1921.  Mr.  Sharpe  calls  at- 
tention to  certain  statements  made  by  importers  and  manufacturers 
of  graphite  products.  His  letter,  written  as  president  of  the  Graph- 
ite Producers'  Association  of  Alabama,  is  summarized  herewith. 

The  duty  of  6  cents  per  pound  on  crystalline  flake  graphite,  asked 
for  by  American  producers,  is  to  be  applied  to  the  most  abundant 
and  important  kind  of  graphite  found  in  the  United  States  and  con- 
ceded to  be  the  world's  best  for  lubricating  purposes.  While  the  de- 
sired rate  of  5  cents  per  pound  on  manufactured  graphite  does  not 
specially  interest  the  American  producer  he  does  not  object  to  it  pro- 
vided his  own  protection  is  assured. 

Mr.  Sharpe  does  not  agree  with  Mr.  F.  Weed's  assertion  that  an 
admixture  of  imported  graphite  may  be  used  to  advantage  in  the 
manufacture  of  large-size  crucibles— an  assertion  not  borne  out  by 
practical  results.  In  any  case,  Mr.  Weed's  reference  is  to  Ceylon 
lump  and  chip  graphite,  not  to  flake.  The  last  named,  mixed  with 
American  clay,  makes  the  best  crucible  of  any  size. 

Mr.  Sharpe  is  unable  to  reconcile  Mr.  G.  F.  Pettinos's  disclaimer  of 
financial  interest  in  any  foreign  graphite  field  with  other  utterances 
in  this  connection,  notably  an  advertisement  referring  to  his  invest- 
ment in  Ceylon,  on  page  697  of  McEae's  Blue  Book  for  1921. 

The  letter  recites  the  testimony  in  regard  to  the  use  of  flake  graph- 
ite by  foreign  crucible  makers,  American  experience  in  the  same  field, 
and  the  remedying  of  early  troubles  by  more  careful  methods,  with  a 
resulting  possibility  of  tripling  the  life  of  a  crucible  and  a  setback 
for  the  electric  furnace. 

As  regards  the  alleged  monopolist  position  of  the  Quenelda  Graph- 
ite Co.,  that  concern  has  been  bankrupt  since  before  the  date  of  the 
hearing  at  which  Mr.  C.  E.  Kern  referred  to  it.  Other  graphite  pro- 
ducers in  the  United  States  are  in  the  same  unfortunate  situation  at 
this  time. 

Touching  amorphous  graphite,  there  are  very  extensive  American 
deposits  of  this  product,  of  excellent  quality.  A  proper  protection  of 
this  material  will  benefit  the  consumer,  because  competition  between 
flake  and  amorphous  will  safeguard  the  price. 

Writing  on  December  20,  1921,  Mr.  Sharpe  directs  the  attention 
of  the  committee  to  a  memorandum  recently  prepared  for  Mr.  H. 
Foster  Bain,  Director,  United  States  Bureau  of  Mines.  In  that 
document,  Mr.  R.  T.  Stull,  of  said  bureau,  details  the  nature  of  the 
tests  already  referred  to  in  Mr.  Herbert  B.  Johnson's  testimony, 
following  investigations  on  various  physical  factors  entering  into 
the  use  of  graphite  for  crucible  purposes. 

The  memorandum  notes  the  influence  of  the  war  in  promoting 
the  use  of  American  graphite  and  bond  clay  for  the  respective  Cey- 
lon and  Klingenberg  materials.  The  primary  result  of  tests  applied, 
by  the  ceramic  station  of  the  bureau,  to  a  large  number  of  domestic 
clays  was  to  leave  21  for  further  investigation.  This  included  the 
determination  of  a  standard  crucible  composition,  both  for  brass 
and  steel  melting,  the  manufacture  of  such  crucibles  in  a  regular 
crucible  factory,  and  trials  under  commercial  conditions.  It  was 
proved  that  2  American  clays  were  superior  to  Klingenberg  for  brass 
melting  and  13  for  steel  melting.  Canadian  graphite  was  shown 
to  be  inferior  to  Ceylon  for  brass  melting,  while  Alabama  flake,  sub- 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  129 

stituted  for  Ceylon,  gave  a  longer  life  to  the  crucible.  No  advantage 
was  found;  to  accrue  from  converting  the  Alabama  flake  into  granular 
form  by  coking. 

While  the  tests  on  American  graphite  used  in  steel  melting  cru- 
cibles are  not  yet  completed,  it  has  been  proved  that  American  bond 
clays  can  be  substituted  with  benefit  for  Klingenberg  for  both  brass 
and  steel  melting  and  that  Alabama  flake  graphite  can  be  sub- 
stituted with  benefit  for  Ceylon  in  brass  melting. 

Hearings:  Pages  1530-1532. 

Witness:  Mr.  F.  Weed,  representing  graphite  producers. 

Costs  and  selling  prices. — Prices  of  graphite  in  the  forms  used  by 
manufacturers  are  now  in  some  instances  less  than  one-half  the  low- 
est prices  ever  known  in  the  industry.  The  present  price  of  imported 
lump  graphite  is  3£  cents  per  pound.  Prewar  prices  averaged  7 
cents.  Madagascar  graphite,  selling  to-day  for  2  cents,  sold  prewar 
for  6  to  7  cents. 

War  embargoes  have  had  the  effect  of  piling  up  large  stores 
abroad,  which  are  being  marketed  regardless  of  cost.  The  cost  of 
graphite  to  the  public  was  exemplified  by  these  figures : 

A  box  of  flake  graphite  selling  for  75  cents  contains  5  cents  worth  of 

graphite. 
A  box  of  amorphous  graphite  selling  for  40  cents  contains  2  cents  worth 

of  graphite. 
A  gallon  of  graphite  paint  selling  for  $2.50  contains  6  cents  worth  of 

graphite. 
A  box  of  graphite  grease  selling  for  15  cents  contains  one-half  cent  worth 

of  graphite. 
A  package  of  pencils  selling  for  15  cents  contains  one-tenth  cent  worth  of 

graphite. 

Size  of  industry. — Sufficient  for  domestic  needs. 

Comparability. — Most  of  the  trouble  experienced  during  the  war 
when  using  domestic  graphite  in  crucibles  was  due  to  the  substitution 
of  inferior  clays  for  the  Bavaria  variety.  Difficulties  about  flaking 
and  cracking  were  overcome  at  the  Portsmouth  Navy  Yard  after  a 
week's  study  by  using  greater  care,  especially  in  properly  seasoning 
crucibles  before  use.  When  properly  prepared,  the  life  of  crucibles 
immediately  increased  to  20  heats.  From  January  1,  1917,  to  May  1, 
1918,  the  average  life  of  276  crucibles  used  in  a  small  plant  was  54 
heats. 

American  graphite  makes  the  best  small  and  medium  crucibles  it  is 
possible  to  make.  Imported  graphite  is  used  to  advantage  as  an  ad- 
mixture in  the  manufacture  of  the  large  sizes. 

Rates  suggested. — Lump  graphite,  3  cents  per  pound ;  flake  graph- 
ite, 6  cents  per  pound.  These  rates  would  bring  the  lump  price  to 
prewar  levels  and  give  a  surplus  of  2  cents  per  pound  on  flake  "  to 
discourage  the  importation  of  this  utterly  needless  product." 

Witness:  Mr.  T.  H.  Aldrich,  Birmingham,  Ala.  (Brief;  no  ap- 
pearance at  hearings.) 

Size  of  industry. — Under  the  stimulus  of  war  necessity,  the  pro- 
ducing capacity  of  the  Alabama  field  increased  from  1,500  tons  a 
year  to  15,000  tons  a  year  and  the  investment  from  $150,000  to  over 
$4.000,000. 

Kates  suggested. — The  10  per  cent  ad  valorem  protection  reported 
by  the  Ways  and  Means  Committee  is  regarded  as  totally  inade- 


130  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

quate;  the  adoption  of  the  schedule  of  rates  presented  by  the  Ala- 
bama graphite  producers  is  urged. 

Hearings:  Pages  1513-1518. 

Witness :  Mr.  G.  F.  Pettinos,  representing  himself. 

Costs  and  selling  prices. — Ceylon  graphite  is  selling  to-day  for  6£ 
cents,  amorphous  graphite  for  3£  cents  per  pound,  laid  down  at  wit- 
ness's mill. 

Comparability. — The  major  part  of  the  graphite  consumed  in  the 
United  States  is  used  in  the  manufacture  of  crucibles  for  steel  and 
brass  foundries.  American  flake  graphite  is  absolutely  unsuitable 
for  this  use.  There  is  no  graphite  in  this  country  which  will  produce 
a  material  that  can  be  substituted  for  the  Ceylon,  except  in  small 
quantities  up  to,  say,  10  per  cent.  During  the  war  a  mixture  of  35 
per  cent  of  domestic  flake  graphite  with  65  per  cent  Ceylon  graphite 
was  used,  and  8,000  crucibles  mude  from  this  mixture  averaged  5 
heats  per  crucible  when  they  should  have  averaged  26.  Afterwards 
witness  manufactured  a  number  of  crucibles  with  100  per  cent  Ceylon 
graphite  and  clay  of  the  same  quality  as  before.  The  average  life  of 
these  crucibles  was  26  heats.  Experiments  conducted  by  the  Bureau 
of  Standards  are  of  great  scientific  interest,  but  practical  use  is 
more  to  be  depended  on. 

Lead-pencil  manufacturers  use  amorphous  graphite  mixed  with 
clay  in  the  leads.  Mexican  graphite  is  best  suited  for  this  use,  and 
in  competition  with  European  manufacturers  in  export  markets  must 
be  used  to  keep  up  the  quality.  Lead-pencil  manufacturers  in  the 
United  States  exported  $3,565,347  worth  of  pencils  and  pencil  leads 
in  1919. 

Rates  suggested. — Witness  desires  crude  and  refined  graphite  re- 
tained on  the  free  list.  A  duty  on  graphite  would  hasten  the  elimina- 
tion of  crucibles  (referred  to  below)  by  accelerating  the  adoption  of 
the  electrical  furnace  in  steel  plants  and  would  give  no  revenue  to  the 
Government  or  protection  to  domestic  graphite  producers.  An  in- 
crease in  the  duty  on  amorphous  graphite  would,  of  course,  .hit  the 
pencil  manufacturers. 

Remarks. — An  important  development  in  the  graphite  industry 
in  recent  years  has  been  the  substitution  of  electric  furnaces  for 
crucibles  in  the  steel  and  brass  industries.  The  Bethlehem  Steel  Co. 
formerly  used  10,000  crucibles  a  month.  To-day  their  entire  produc- 
tion is  produced  in  electric  furnaces.  This  step  has  been  made  be- 
cause the  large  producers  of  metal  products  have  found  that  crucible 
steel  production  is  more  expensive  than  the  electric  furnaces.  It 
follows  that  any  duty  on  graphite,  necessarily  increasing  the  price  of 
crucibles  to  the  consumer,  will  hasten  the  development  of  the  electric- 
furnace  practice  at  the  expense  of  the  crucible  industry.  It  appears 
probable  that  in  the  long  run  electric  furnaces  will  triumph  over 
crucibles  and  drive  crucible  manufacturers  out  of  business. 

Hearings:  Pages  1519-1521. 

Witness :  Mr.  C.  E.  Kern,  representing  crucible  manufacturers. 

Costs  and  selling  prices. — Ceylon  graphite  has  always  sold  for 
from  50  to  100  per  cent  more  than  the  Alabama  product.  This  is  due 
to  the  small  percentage  of  the  Alabama  product  which  can  be  used 
as  a  mixture  in  the  manufacture  of  crucibles. 

Size  of  industry. — The  Quenelcla  Graphite  Co.,  of  Alabama,  claims 
to  own  60  per  cent  of  all  flake  graphite  deposits  in  the  United  States, 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  131 

making  it  one  of  the  greatest  monopolies  of  a  natural  product.  Ninety 
per  cent  of  all  graphite  deposits  in  the  United  States  are  found  in 
Alabama. 

Comparability. — The  witness  has  been  unable  to  discover  any  man- 
ufacturer of  crucibles  who  has  successfully  substituted  the  American 
product  without  sacrificing  durability  or  other  desirable  qualities. 
Ceylon  graphite,  being  absolutely  necessary  for  crucible  manufac- 
ture, will  be  used  regardless  of  tariff  barriers. 

Rates  suggested. — Graphite  to  be  on  the  free  list. 

Remarks. — An  important  feature  of  the  movement  to  substitute 
electric  furnaces  for  crucibles  is  the  fact  that  only  the  largest  pro- 
ducers can  afford  electric-furnace  installations.  If  the  smaller  pro- 
ducers are  forced  to  continue  production  with  a  higher  priced  cru- 
cible it  will  place  them  at  a  marked  disadvantage  in  competition 
with  large  manufacturers  able  to  afford  electric-furnace  installations. 

Hearings:  Pages  1521-1522. 

Witness :  Mr.  H.  M.  Riddle,  representing  manufacturers  of  graph- 
ite for  foundry  facings,  stove  polishes,  and  other  purposes. 

Remarks. — There  is  no  substitute  for  Ceylon  graphite  for  the 
manufacture  of  foundry  facings ;  it  is  impossible  to  make  good  cast- 
ings without  that  product. 

In  a  brief,  subsequently  submitted  by  the  witness,  an  appeal  is 
made  to  the  committee  to  have  graphite  admitted  into  this  country 
free  of  duty.  The  waste  in  refining  domestic  graphite  is  very  great 
and  the  dust  is  injurious  to  the  health'  of  workers. 


Hearings :  Pages  1481-1486. 
Witness :  Mr.  L. 


Witness :  Mr.  L.  S.  Brown,  representing  the  Springfield  Facing  Co. 

Costs  and  selling  prices. — High-grade  imported  graphite  was  $74 
per  ton  in  1914,  $81  per  ton  in  1915  and  $226  per  ton  in  1918. 

Comparability. — American  graphite  is  absolutely  unsuitable  for 
use  in  the  manufacture  of  crucibles  and  for  foundry  facings,  despite 
the  claims  of  Montana  and  Alabama  graphite  producers.  During 
the  war  it  was  necessary  to  use  20  per  cent  of  American  graphite  in 
crucibles,  with  the  result  that  instead  of  giving  from  30  to  40  heats 
they  only  gave  from  1  to  6  heats.  Some  large  producers,  in  order  lo 
surmount  this  difficulty,  were  forced  to  buy  Ceylon  graphite  and 
make  their  own  crucibles,  with  the  result  that  the  life  of  the  cruci- 
bles immediately  rose  to  from  30  to  50  heats,  American  graphite  re- 
quires more  clay  for  bonding  purposes,  and  as  clay  does  not  conduct 
heat  as  well  as  graphite  it  requires  from  three  to  four  times  as  long 
to  heat  the  crucibles  as  when  the  pure  Ceylon  graphite  is  used. 

Rates  suggested.— Witness  would  retain  graphite  and  plumbago 
on  the  free  list,  as  in  the  Underwood- Simmons  tariff. 

Hearings:  1527-1530. 

Witness :  Mr.  E.  J.  Davis,  representing  United  States  Graphite  Co. 

Costs  and  selling  prices. — Witness  states  that,  if  it  were  suitable, 
his  company  would  be  delighted  to  use  American  amorphous  graph- 
ite, since,  according  to  a  pamphlet  of  the  Geological  Survey,  the 
price  is  $10.60  per  ton.  The  freight  alone  on  Mexican  graphite  is 
more  than  $16. 

Comparability. — No  amorphous  graphite  is  produced  in  the 
United  States  which  can  be  satisfactorily  substituted  for  the  im- 
ported. 


132  DIGEST  OF  TABIFF   HEADINGS,   H.  B.   7456.      » 

Rates  suggested. — A  supplementary  brief  on  pages  1543-1545 
states  that  American-owned  Mexican  mines  furnished  to  this  com- 
pany 34,489  tons  in  the  years  1913-1920  and  that  a  tariff  on  amor- 
phous graphite,  while  not  aiding  American  producers,  would  handi- 
cap those  manufacturers  who  are  obliged  to  use  Mexican  amorphous 
graphite.  Witness  requests,  therefore,  that  amorphous  graphite  be 
admitted  free  of  duty. 

PARAGRAPHS  212  AND  213. — EARTHENWARE  AND  CHINA  WARE. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Fulper  Pottery  Co.,  Flemington,  Hunterdon  County,  N.  J.     (Brief.) 
FAVORING  LOWER  DUTIES  : 

Mr.  Theodore  Jones,  representing  Jones,  MacDuffee  &  Stratton  Corporation, 
Boston,  Mass. 

Witness :  The  Fulper  Pottery  Co..  Flemington,  Hunterdon  County, 
N.  J.  (Brief;  no  appearance  at  hearings.) 

Size  of  industry. — The  manufacture  of  ornamented  and  decorated 
pottery  is  a  large  industry  scattered  over  the  entire  United  States  and 
having  an  annual  output  of  many  hundreds  of  thousands  of  dollars. 

Rates  suggested. — A  rate  of  40  per  cent  ad  valorem. 

Remarks. — The  getting  out  of  new  designs  is  led  by  America.  This 
is  necessitated  by  the  fact  that  as  fast  as  new  things  are  produced  here 
importers  buy  samples  and  send  them  abroad,  where  they  are  imitated, 
reproduced,  and  brought  to  America  and  marketed  at  a  price  making 
it  impossible  to  compete.  The  company  has  no  objection  to  fair  com- 
petition but  asks  that  a  condition  allowing  similar  articles  to  reach  the 
American  market  at  prohibitively  low  prices  be  corrected. 

NOTE. — For  this  company's  testimony  on  bisque  doll  heads  see  Schedule  14, 
paragraph  1414. 

Hearings:  Pages  1532-1540. 

Witness:  Mr.  Theodore  Jones,  representing  Jones,  MacDuffee  & 
Stratton  Corporation. 

Size  of  industry. — The  annual  production  of  the  American  pottery 
industry  in  1913  was  valued  at  $17,490,000.  In  1920  it  was  $50,- 
420,000,  an  increase  of  190  per  cent  in  seven  years.  During  the  same 
period  importations  increased  from  $9,947,000  to  $10,850,000,  an 
increase  of  9  per  cent.  Exports  of  earthen  and  china  ware  during 
this  period  increased  from  $550,000  to  $2,800,000,  an  increase  of  400 
per  cent. 

Comparability. — The  cheaper  grades  of  china  are  not  being  pro- 
duced in  the  United  States.  United  States  potteries  produce  a  very 
limited  variety' of  wares  requested  by  the  consumers  of  this  country, 
so  that  it  is  necessary  to  import  many  kinds  of  ware  from  abroad. 
No  well-conducted  crockery  or  china  business  could  be  conducted 
without  a  stock  of  imported  wares.  In  fact,  outside  of  staple  lines 
of  English  semiporcelain  ware  the  great  bulk  of  the  imported  goods 
is  entirely  different  in  character  and  quality  from  those  produced  in 
the  United  States.  A  great  deal  of  chinaware  is  produced  in  Tren- 
ton, N.  J.  The  Lenox  Co.,  situated  in  that  city,  produces  a  variety 
of  fine  china  which  competes  directly  and  successfully  with  the  finest 
English  china.  This  company  has' more  business  than  the  factory 


DIGEST  OF  TAKIFF   HEARINGS,   H.   K.   7456.  133 

can  take  care  of  and  has  stated  that  they  are  unafraid  of  any  compe- 
tition and  do  not  need  any  higher  protection. 

Rates  suggested. — Witness  cites  the  Lenox  China  Co.  and  Mr. 
Wells,  of  East  Liverpool,  Ohio,  as  authority  for  the  contention  that 
American  potteries  do  not  require  greater  protection  than  was  af- 
forded them  under  the  present  tariff.  The  rates  proposed  in  H.  R. 
7456,  when  converted  to  foreign  valuation,  amount  to  from  48  to  64 
per  cent  on  earthenware  and  88  to  125  per  cent  on  china  ware.  Under 
the  proposed  bill  a  28  per  cent  duty  on  a  particular  decorated  earth- 
enware would  amount  to  64J  per  cent  of  the  foreign  cost.  The  wit- 
ness stated  that  "  wholesale  selling  prices  in  the  United  States  mar- 
kets are  very  substantially  more  than  double  the  foreign  cost."  The 
Fordney  rates  are  based  on  foreign  cost  plus  duty  only,  ignoring  all 
other  costs  anq1  expenses  which  go  to  make  up  the  wholesale  selling 
price.  Witness  suggests,  therefore,  that  any  rates  assessed  on  the 
American  valuation  basis  should  be  less  than  half  what  they  are  at 
present  on  foreign  costs. 

Remarks . — A  orief^  dated  August,  1921,  filed  by  the  witness  in 
behalf  of  the  tariff  committee  of  the  wholesalers  of  crockery  and 
china  of  the  United  States  appears  on  page  1538.  It  calls  for  a  mod- 
erate reduction  of  the  rates  on  earthenware  and  china,  which  would 
yield  increased  revenue  and  reduced  selling  prices  to  consumers. 
Tables  showing,  by  representative  import  consignments,  "  an  enor- 
mous increase  in  selling  prices  to  the  public  at  a  time  when  reductions 
are  hopefully  expected  and  demanded  "  serve  to  uphold  the  conten- 
tion that,  under  American  valuation,  the  rates  on  earthenware  would 
vary  from  48  to  64  per  cent,  and  on  china  from  88  to  125  per  cent. 

Comments  by  American  pottery  manufacturing  interests. — Mr.  B.  E. 
Salisbury,  president.  United  States  Potters'  Association,  in  a  letter 
of  October  6,  1921,  to  the  committee,  takes  issue  with  certain  features 
of  Mr.  Jones's  testimony.  In  particular,  he  refers  to  the  witness's 
citation  of  Mr.  W.  E.  Wells,  as  stating  that  "  the  present  tariff  is 
high  enough  for  the  protection  of  the  native  potters."  Mr.  Salisbury 
incloses  with  his  letter  an  affidavit  sworn  to  by  Mr.  Wells  on  October 
3,  1921,  affirming  that  "  he  never  made  the  statement  quoted  by  Mr. 
Jones  to  him  or  to  anyone  else,  nor  any  statement  that  might  by  any 
process  be  interpreted  or  contorted  into  that  meaning."  So  far  from 
that  expression  representing  his  views,  Mr.  Wells  had  "stated  the 
opinion  frequently  in  public  and  in  private,  and  upon  two  occasions 
within  the  hearing  of  Mr.  Jones,  that  unless  the  rates  provided  in 
the  present  Underwood  bill  are  not  (sic)  substantially  increased  in 
the  contemplated  new  bill  the  domestic  pottery  industry  will  face 
absolute  ruin." 

Mr.  Salisbury  also  critizes  Mr.  Jones's  further  statement  that  the 
Lenox  pottery  has  "  more  business  than  their  factory  can  take  care  of 
and  has  stated  that  they  are  unafraid  of  any  competition  and  do  not 
need  any  high  protection."  In  rebuttal  of  this  assertion,  Mr.  Salis- 
bury incloses  an  affidavit  sworn  to  on  August  20,  1921,  by  Mr.  Harry 
A.  Brown,  president  of  the  Lenox  Co.  Mr.  Brown  confirms,  to  the 
best  of  his  knowledge,  the  testimony  that  no  other  manufacturer  in 
America  is  making  the  grade  of  china  in  question,  but  goes  on  to 
state  that  "  the  present  development  was  made  possible  solely  through 
the  tariff,  and  the  future  of  the  business  depends  upon  the  tariff, 
absolutely." 

77134—22 10 


134  DIGEST  OF  TARIFF   HEARINGS,   H.   R,   7456. 

Mr.  Salisbury's  letter  enters  in  detail  upon  Mr.  Jones's  estimate  of 
what  the  actual  rate  of  duty,  under  the  bill,  would  mean  as  applied 
upon  American  valuation.  Mr.  Salisbury  reaches  the  conclusion  that, 
in  two  cases  where  the  goods  are  comparable,  the  equivalent  rate  oh 
earthenware  would  be  only  48  per,  cent  in  one  case  and  50J  in  the 
other. 

Further  statements  by  Mr.  Salisbury  show,  on  the  basis  of  Mr. 
Jones's  testimony,  the  gross  profits  made  upon  the  imported  goods 
under  the  present  law,  tending  toward  the  conclusion  that  the  same 
goods  can  be  sold  at  the  same  prices  and  at  a  handsome  profit  under 
the  Fordney  bill  rates. 

PARAGRAPH  213. — CHEMICAL  STONEWARE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   Maurice  A.   Knight,  representing  manufacturers  of  acid-proof  stone- 

"ware;  address,  Akron,  Ohio. 

The  Acid  Proof  Clay  Products  Co.,  Akron,  Ohio;  the  United  States  Stone- 
ware Co.,  Akron,  Ohio ;  and  Mr.  Maurice  A.  Knight,  East  Akron,  Ohio. 
(Joint  brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.  David  Walker,  representing  Morimura  Bros.,  New  York  City. 

Hearings:  Pages  1547-1553. 

Witness:  Mr.  Maurice  A.  Knight,  representing  manufacturers  of 
acid-proof  stoneware. 

Costs  and  selling  prices. — The  chemical  stoneware  business  is  en- 
tirely different  from  the  manufactures  of  ordinary  grades  of  salt- 
glazed  stoneware.  The  clay  used  must  be  carefully  selected  and  stored 
for  long  periods  to  obtain  uniform  results  in  the  manufacturing  proc- 
ess. The  production  processes  of  chemical  stoneware  are  all  hand 
labor,  amounting  to  80  per  cent  of  the  total  cost.  Domestic  labor  re- 
ceived 90  cents  per  hour  as  compared  with  6  cents  per  hour  in  Ger- 
many and  18  cents  in  Great  Britain.  A  recent  wage  reduction  brought 
down  American  wages  to  75  cents  an  hour  from  the  90-cent  war  rate. 
Freight  rates  react  against  American  manufacturers  who  have  to  pay, 
from  Akron  to  the  Atlantic  seaboard,  60  cents  a  hundred  pounds  in 
less-than-carload  lots  and  40  cents  in  carload  lots.  European  chemical 
stoneware  is  imported  practically  as  ballast,  because  salt  water  does 
not  injure  it. 

Size  of  industry. — Prior  to  the  war  there  were  eight  plants  manu- 
facturing chemical  stoneware.  To-day  four  of  these  have  gone  out 
of  business  and  the  balance  are  having  a  great  struggle  in  competing 
with  imported  products. 

Rates  suggested. — Separate  paragraph  classification  for  chemical 
stoneware  at  200  per  cent  ad  valorem.  As  a  large  percentage  of  the 
chemical  stoneware  production  is  made  to  order  from  blue  prints  it 
would  be  very  difficult  to  ascertain  dutiable  American  wholesale  mar- 
ket prices,  and  for  this  reason  alternative  methods  for  valuation  must 
be  used.  A  separate  classification  is  desired,  for  the  manufacturing 
process  in  chemical  stoneware  is  entirely  different  from  that  of  any 
other  clay  manufacture.  It  is  a  distinct  industry.  The  product  is 
made  by  hand  from  very  carefully  selected  clays,  while  common  clays 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  135 

are  used  in  ordinary  salt-glazed  stoneware  and  machine  production 
predominates.  Under  the  Simmons-Underwood  tariff  there  is  no 
separate  provision  for  chemical  stoneware,  arid  this  product  is  im- 
ported under  several  classifications  at  low  rates  of  duty.  The  industry 
is  absolutely  vital  to  the  success  of  all  chemical  industry  in  the  United 
States.  If  the  chemical  stoneware  industry  is  to  survive  and  be  ready 
to  supply  the  industries  of  the  United  States  with  the  equipment  re- 
quired for  the  manufacture  of  explosives,  poison  gas,  dyestuffs,  acids, 
and  other  products,  it  should  be  protected  with  an  ad  valorem  duty 
of  not  less  than  200  per  cent.  In  addition,  legislation  should  be 
enacted  prohibiting  the  sale  of  chemical  stoneware  in  this  country  at 
prices  less  than  the  cost  of  production  here. 

Witness:  The  Acid  Proof  Clay  Products  Co.,  Akron.  Ohio;  the 
United  States  Stoneware  Co.,  Akron,  Ohio;  and  Mr.  Maurice  A. 
Knight.  East  Akron,  Ohio.  (Joint  brief ;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  chief  sources  of  foreign  competition 
in  chemical  stoneware  are  England  and  Germany,  the  latter  country 
being  by  far  the  more  serious  competitor. 

German  labor  and  living  costs  have  not  advanced  in  proportion 
to  the  differential  in  exchange — a  condition  enabling  German  manu- 
facturers to  lay  down  goods  in  this  country  at  an  excellent  profit  for 
themselves  but  at  unlivable  prices  for  the  United  States. 

During  normal  conditions  prior  to  the  war,  the  German  workman 
making  chemical  stoneware  was  earning  from  20  to  40  marks  per 
•week,  while  the  American  workman  was  earning  from  $6  to  $8  per 
day.  The  foreign  manufacturer  is  willing  to  sell  at  or  below  cost 
at  this  time  in  order  to  drive  out  competition  and  preserve  the  market 
for  later  exploitation  at  higher  prices. 

Size  of  industry. — Prior  to  1914  there  were  eight  United  States 
concerns  engaged  in  the  manufacture  of  chemical  stoneware,  four 
of  which  were  forced  by  aggressive  competition  to  discontinue  before 
the  besrinninir  of  the  war.  The  four  remaining  in  business  are :  The 
Acid  Proof  Clay  Products  Co.,  Akron,  Ohio;  the  United  States  Stone- 
ware Co.,  Akron,  Ohio;  General  Ceramics  Co.,  New  York,  N.  Y. ; 
Maurice  A.  Knight,  East  Akron,  Ohio. 

Expert  labor  required  in  the  manufacture  of  this  ware  is  limited 
to  probably  200  in  the  entire  country  who  can  be  considered  pro- 
ficient. 

Rates  suggested. — The  proposed  duty  of  35  per  cent  ad  valorem  is 
not  enough  to  protect  the  American  chemical  stoneware  industry 
from  foreign  competition.  The  product  should  be  placed  in  a  classi- 
fication by  itself  and  given  an  ad  valorem  rate  of  duty  of  not  less 
than  200  per  cent.  Antidumping  legislation  should  be  immediately 
enacted  prohibiting  the  sale  of  chemical  stoneware  at  a  price  not 
(sir-)  less  than  the  cost  of  production  in  this  country. 

Remarks. — Chemical  stoneware  is  primarily  used  by  the  acid, 
alkali,  dyestuff,  pharmaceutical,  chemical,  explosive,  poison  gas,  and 
allied  industries  as  plant  equipment.  It  is  used,  besides,  by  prac- 
tically every  industry  in  the  country  using,  handling,  or  manufac- 
turing corrosive  chemicals.  Chemical  stoneware  is  not  to  be  con- 
fused with  ordinary  or  common  stoneware,  but  is  a  distinct  and  sepa- 
rate type  of  material  and  used  and  made  in  large  sizes  as  equipment 
for  manufacturing. 


136  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

Common  forms  of  stoneware,  made  on  machines  where  the  human 
element  has  but  little  effect  on  the  cost,  can  be  turned  out  in  quanti- 
ties very  cheaply  without  the  extreme  hazard  or  great  percentage  of 
loss  incidental  to  chemical  stoneware  manufacture.  This  product  is 
hand  molded  or  built  up  by  hand,  by  expert  labor  specially  trained 
after  years  of  patient  effort.  Chemical  stoneware  must  be  built  up 
by  hand,  because  the  pieces  are  too  large  and  complicated  to  be  made 
on  a  machine ;  as  there  are  no  standard  sizes  or  pieces,  the  goods  are 
mostly  made  to  order  and  blue  print  to  suit  customers'  requirements. 
Further,  in  order  to  stand  the  abuse  they  receive  in  plant  operation, 
the  articles  must  be  very  carefully  and  slowly  constructed  by  expert 
workmen,  who  know  just  the  proper  mixture  and  temper  of  the  clay 
to  use  and  how  the  piece  should  be  molded  and  pressed  to  withstand 
the  work  for  which  it  is  designed. 

During  the  war  the  Government  placed  chemical  stoneware  in  the 
priority  class  as»a  necessary  industry.  Without  the  chemical  stone- 
ware industry,  places  like  Hopewell,  Muscle  Shoals,  Edgewood  Ar- 
senal, and  experimental  poison-gas  stations  could  not  have  been 
planned  or  operated.  All  the  chemical  stoneware  manufacturers 
were  from  a  year  to  eighteen  months  behind  on  Government  orders 
at  the  close  of  the  war. 

In  paragraph  213,  H.  R.  7456,  chemical  stoneware  is  grouped  with 
bisque,  parian,  and  other  wares  in  no  way  similar  to  chemical  stone- 
ware, either  in  method  of  manufacture  or  use :  it  would  therefore  lead 
to  confusion  and  misunderstandings  should  the  bill  become  a  law  as 
it  now  reads.  There  should  be  a  separate  and  distinct  classification. 

Some  of  the  concerns  who  are  now  out  of  business,  and  others  who 
are  still  making  chemical  stoneware,  started  in  business  25  or  more 
years  ago,  making  common  stoneware,  sanitary  ware  or  other  pro- 
ducts, and  later  added  chemical  stoneware  to  these  lines.  In  nearly 
every  case,  outside  of  some  of  the  simpler  pieces  or  those  required 
in  a  hurry,  they  were  unable  to  compete  with  the  foreign  product  and 
were  forced  to  manufacture  other  lines  to  continue  in  business.  The 
greater  number  could  not  even  survive  with  the  side  line  to  help 
them  and  were  forced  to  close,  and  have  not  since  resumed  operations. 
The  remainder  were  able  to  survive  until  the  outbreak  of  hostilities 
in  Europe  cut  off  importation.  This  is  an  infant  industry,  struggling 
hard  to  keep  in  existence,  and  in  danger  of  losing  out  if  conditions 
prior  to  1914  are  resumed.  The  proposed  35  per  cent  ad  valorem 
duty  affords  no  adequate  protection. 

In  the  event  of  the  industry  being  wiped  out  in  this  country,  and 
should  conditions  be  such  that  American  key  chemical  industries 
are  called  on  for  assistance  in  case  of  war,  with  the  supply  of  chemical 
stoneware  from  Europe  shut  off,  conditions  here  would  be  critical.  It 
would  be  impossible  to  start  the  chemical  stoneware  industry  again, 
as  is  possible  in  some  other  lines,  owing  to  the  lack  of  skilled  work- 
men and  of  the  special  plant  layout  and  expert  supervision  required. 
Besides,  were  the  industry  wiped  out,  the  users  of  chemical  stone- 
ware during  times  of  peace  would  ultimately  be  forced  by  foreign 
manufacturers  to  pay  exorbitant  prices  for  their  apparatus. 

Hearings:  Pages  1541-1547. 

Witness :  Mr.  David  Walker,  representing  Morimura  Bros. 

Costs  and  selling  prices. — The  following  table  shows  the  cost 
prices,  together  with  all  transportation  and  duty  charges  and  other 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  137 

particulars  incident   to  landing  a   representative  set   of  Japanese 
china  in  Xew  York  City. 

[Exhibit  1901.] 
DINNERWABE,    100-PIECE   SET. 

Cost  per  set yen__  22. 182 

Cost  per  case  (3  sets) do 66.546 

Size  of  case cubic  feet 15 

Weight  of  case pounds..  290 

Freight : 

Ocean,  from  Japan  to  Pacific  coast per  100  pounds $0.  85 

Rail,  from  Pacific  coast  to — 

East  of  Chicago do $2.  665 

West  of  Chicago do $2.  300 

|  i 

I  Amount. '  Per  cent. 

Cost  of  case,  exchange  at  $50,  50  per  cent I    $33.273  •.  100 

Purchasing  commission,  7  per  cent !       2. 330  \ 

Packing  and  casing,  22  cents  per  cubic  foot I       3. 300  :  10 

Duty  oncost,  55  per  cent 18.301  ]  55 

Duty  on  packing  and  casing,  55  per  cent 1.815  !  5.  5 


Freight  (ocean,  $0.85;  rail,  $2.665) 

Shipping,  insurance,  and  landing  charges. 


Landing  cost  per  set  (3  sets).. . 


Landing  cost  per  set  (3  sets). 


ing  gross  profit  per  set  (including  operating  expenses),  29.4  per  cent  on  selling 


profit  per  set  ( 
1.7  per  cent  on  i 


price  and  41.7  per  cent  on  cost 


Selling  price  per  set . 


Selling  price  per  case . 


10. 194  31 

1.491  4.4 


70.704  ;          213 


23.57 
9.82 


33.39 


100.17 


(Readers  should  bear  in  mind  in  considering  this  table  that  the  par 
value  of  the  yen  is  50  cents,  so  that  the  prices  divided  by  2  will  equal 
dollar  prices.) 

A  calculation  (Table  D)  made  by  the  witness  showed  that  1  yen,  or 
50  cents,  expended  for  the  purchase  of  chinaware  in  Japan  amounts 
to  $1.10  duty  paid  in  New  York  under  the  Simmonds-Underwood 
Act ;  with  the  addition  of  36.4  per  cent  profit  on  the  landed  cost  the 
goods  sell  wholesale  in  the  New  York  market  for  $1.50. 

Witness  presented  a  sample  of  domestic  "earthenware,"  labeled 
'' chinaware,"  and  of  Japanese  chinaware,  practically  .the  same  pat- 
terns with  figures,  showing  that  the  wholesale  price  on  the  imported 
china  product  is  $5.25  greater  than  the  retail  price  on  the  domestic 
earthenware.  * 

Comparability. — Witness  maintains  that  there  is  nothing  manufac- 
tured in  the  United  States  which  is,  strictly  speaking,  comparable  to 
Japanese  importations. 

Rates  suggested. — The  witness  would  be  satisfied  with  the  rate  of 
duty,  based  on  the  American  valuation  plan,  that  will  afford  the  same 
protection  to  the  American  industry  given  by  the  Payne-Aldrich  law. 
He  cited  Mr.  Wells,  representing  the  American  Potteries  Associa- 
tion, as  taking  up  the  matter  of  protection  before  the  Ways  and 
Means  Committee  (p.  579  of  the  printed  hearings).  The  witness 
went  in  considerable  detail  into  an  analysis  of  the  duty  proposed  in 
the  bill,  as  showing  that  this  would  amount  to  181  per  cent  on  the 
foreign  value  now  used  as  the  basis  of  assessment. 


138  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPHS  217  AND  218.-r-BoTTLES. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHEB  DUTIES  : 

Mr.  James  Morrison,  representing  National  Bottle  Manufacturers'  Associa- 
tion, Toledo  .Ohio. 

Hearings:  Pages  1565-1570. 

Costs  and  setting  prices. — Witness  exhibited  a  bottle  of  American 
manufacture  selling  in  the  United  States  for  $2.15  per  gross.  Japa- 
nese bottles  are  being  offered  at  86  cents  a  gross,  laid  down  in  New 
York,  a  pi-ice  which  would  do  little  more  than  cover  the  domestic 
blower  wage  cost.  Wages  for  unskilled  work  in  the  bottle  industry 
run  from  $22  to  $25  a  week;  skilled  workers  draw  from  $35  to  $40 
per  week,  these  rates  being  120  per  cent  above  the  1914  level.  Work- 
ers in  American  plants  have  recently  refused  to  take  a  reduction  in 
wages,  except  in  a  few  isolated  instances;  in  some  cases  even  higher 
wages  are  being  demanded.  Information  gathered  by  the  president 
of  the  American  Flint  Glass  Workers'  Union  in  a  four-months'  Eu- 
ropean trip  indicates  that  wages  in  central  Europe  run  from  $3  to  $5 
per  week,  as  compared  with  $25  to  $40  here.  The  present  selling 
price  of  a  16-ounce  bottle  in  the  United  States  is  $6  to  $7  per  gross, 
with  costs  running  from  $5.50  to  $6.50.  In  Germany  the  same  bottle 
would  cost  $1.10  to  $1.40  per  gross,  which  would  permit  the  German 
manufacturer  to  lay  the  bottle  down  in  New  York,  under  the  rates 
proposed  in  H.  R.  7456,  for  $4.32  per  gross.  Japanese  catalogue 
prices  are  fully  50  per  cent  lower  than  those  quoted  in  this  country. 

Size  of  industry. — The  witness  handed  in  data  as  follows : 

Number  of  employees 32, 051 

Annual   wages   paid $30,000,000 

Number  of  gross  of  bottles  per  year 25,  000,  000 

Average  yearly   production $21,  775,  000 

Approximate  value  of  product $108,  875, 000 

Rates  suggested. — Witness  desires  a  duty  of  at  least  60  i  per  cent 
ad  valorem  to  counterbalance  the  difference  in  labor  costs.  He  ex- 
pressed his  approval  of  the  action  of  the  House  of  Representatives 
in  removing  chemical  glassware  and  scientific  apparatus  from  the 
free  list. 

PARAGRAPHS  217  AND  218. — GLASSWARE. 
WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES: 

Mr.  W.  A.  B.  Dalzell,  representing  the  American  Association  of  Glass  Manu- 
facturers, with  headquarters  at  Pittsburgh,  Pa. ;  address,  Moundsville, 
W.  Va. 

Mr.  William  B.  Clarke,  representing  the  American  Flint  Glass  Workers' 
Union. 

Mr.  Thomas  W.  McCreary,  representing  the  Phoenix  Glass  Co.  (Joint  brief 
of  the  above). 

Hearings:  Pages  1553-1565. 

Witness:  Mr.  W.  A.  B.  Dalzell,  representing  the  American  Asso- 
ciation of  Glass  Manufacturers. 

Costs  and  selling  prices. — The  labor  cost  on  100  pieces  of  a  certain 
article  is  5  cents  in  certain  parts  of  Europe.  In  the  United  States 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  139 

it  is  $1.65.  In  1914  central  European  wages  were  much  lower  than 
those  in  the  United  States,  and  domestic  wages  have  doubled.  To- 
day their  wages  are  only  one-eighth  of  domestic.  Union  labor  rules 
limit  production  here  and  it  is  not  possible  to  induce  workmen  to 
work  more  effectively.  New  York  glassware  importers  have  boasted 
that  they  can  undersell  domestic  products,  regardless  of  the  duty, 
owing  to  their  advantage  in  the  difference  in  wages. 

Size  of  industry. — The  annual  production  of  American  tableware 
manufacturers  exceeds  $100,000,000.  Pay  rolls  amount  to  $55,000,000 
for  a  total  of  37.000  workers. 

Rates  suggested. — In  paragraph  217  witness  requests  that  the  pro- 
viso regarding  containers  be  retained  but  that  the  words  "plain 
freen  or  colored,  molded,  or  pressed,  and  flint,  lime,  or  lead,"  be 
eleted  and  that  the  words  "  and  not  to  include  bottles  for  table  serv- 
ice use  or  thermos  bottles  "  be  added  after  the  main  body  of  the  para- 
graph and  before  the  proviso. 

In  paragraph  218  witness  would  delete  "  bottles "  and  start  the 
paragraph,  "  Table  glassware  and  all  articles,"  etc. 

He  suggests  a  new  paragraph,  to  be  known  as  218^,  to  cover  table 
glassware  not  decorated  or  ornamented  in  any  manner.  The  witness 
believes  it  to  be  absolutely  necessary  that  the -rate  of  duty  for  para- 
graphs 218  and  218-|  be  increased  aboA^e  that  provided  under  the 
Fayne-Aldrich  tariff^  inasmuch  as  the  difference  between  American 
and  foreign  wages  has  been  trebled.  He  suggests  further  that  para- 
graph 230  be  amended  so  as  to  exclude  blown  glassware  of  every  de- 
scription. As  revised,  this  would  read :  "  *  *  *  or  of  which  sheet 
glass,  flat  glass,  or  paste  is  the  component  material  of  chief  value," 
etc. 

In  regard  to  paragraph  75.  dealing  with  potassium  carbonate,  the 
witness  would  have  this  product  retained  on  the  free  list,  since  the 
proposed  duties  would  work  great  hardship  on  glass  manufacturers, 
who  use  annually  between  4.000  and  5,000  tons  of  this  chemical. 

Hearings:  Pages  5189-5197. 

Witness :  Mr.  William  B.  Clarke,  representing  the  American  Flint 
Glass  Workers'  Union. 

Costs  and  selling  prices. — In  1914,  to  the  best  of  the  witness's 
knowledge,  the  wages  of  German  glassworkers  averaged  $10.71  a 
week,  based  upon  the  American  standard.  The  wages  of  American 
glassworkers,  at  that  time,  were  $16.23  a  week.  At  the  present  time 
skilled  men  are  paid  $5.27  a  we'ek  in  Germany,  as  a  maximum,  in 
American  money.  The  cost  of  production  in  the  United  States  as 
compared  to  the  cost  in  Germany  is  as  8  to  1.  The  relative  cost  of 
production  is  also  much  lower  in  Czechoslovakia,  Belgium,  and 
France. 

Comparability. — American  glassworkers  have  never,  in  more  than 
40  years,  been  paid  in  excess  of  $35.02  a  week,  and  are  not  getting 
a  living  wage  at  the  present  time.  The  cost  of  skilled  labor  in  the 
production  of  electric  bulbs  (glass  only,  without  the  filament)  is 
not  over  15  cents  a  hundred  in  Germany,  while  the  domestic  labor 
cost  for  the  same  article  is  $1.54  a  hundred,  or  10  times  as  much.  The 
selling  price  of  the  American-made  electric  bulbs  is  about  $27  a 
thousand.  The  witness  was  informed  by  a  dealer  in  German  electric 
bulbs  that  they  were  laid  down  in  the  United  States  at  from  $19  to 


140  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

$22  a  thousand.  The  American  cost  for  these  bulbs  is  $15.40  a 
thousand  for  the  skilled  labor  only,  not  taking  into  consideration 
overhead,  fuel,  and  other  expenses.  Electric  bulbs  sold  for  $18  or 
$19  a  thousand  in  1911  in  the  United  States.  American-made  lamp 
chimneys  sell  for  $1.35  per  dozen  in  Chicago.  111.,  and  a  German 
substitute,  practically  as  good,  is  selling  for  30  cents  per  dozen. 

Ninety  per  cent  of  American  glassworkers  work  on  a  piecework 
basis,  unlimited  production,  and  in  no  instance  do  they  work  less 
than  eight  hours  a  day.  in  most  instances  eight  and  one-half  hours. 
The  statement  of  Mr.  *W.  A.  B.  Dalzell,  of  Moundsville,  W.  Va.,  to 
the  effect  that  glassworkers  worked  but  three  hours  a  day,  is  abso- 
lutely and  positively  inaccurate. 

Rates  suggested. — The  witness  asks  an  ad  valorem  duty  of  60  to  65 
per  cent,  based  on  American  valuation. 

Hearings :  Pages  5234^5235. 

Witness:  Mr.  Thomas  W.  McCreary,  representing  the  Phoenix 
Glass  Co. 

Costs  and  selling  prices. — The  living  conditions  of  workmen  in 
Germany,  Belgium,  France,  and  Czechoslovakia  are  far  below  the 
standard  of  American  workmen.  Their  wages  range  from  1  to  8, 
to  1  to  10,  in  comparison  with  American  standard  wages.  One  ex- 
porter from  Europe  stated  to  the  witness :  "  You  could  raise  your 
tariff  100  per  cent  and  we  will  still  be  able  to  undersell  you."  A 
manufacturer  in  Germany,  who  exported  all  his  goods  to  America, 
stated  that  it  is  possible  for  him  to  sell  goods  in  America  at  less 
than  the  American  wage  rate.  Glassware  costing  approximately 
$24  a  day  to  produce  in  the  United  States  will  cost  from  $3.50  to 
$4.50  a  day  to  produce  in  Germany  and  Czechoslovakia.  The  wit- 
ness saw  a  globe,  similar  to  one  in  the  committee  room,  which  was 
made  in  Czechoslovakia  with  a  labor  cost  of  5  or  6  cents  per  hun- 
dred; the  American  glass  manufacturer's  labor  cost  on  the  same 
article  is  $1.66  per  hundred. 

Rates  suggested. — A  duty  of  60  to  65  per  cent  to  be  imposed  upon 
illuminating  glassware  based  upon  American  valuation. 

Remarks.— The  manufacturers  of  illuminating  glassware  are  in- 
terested in  having  an  additional  paragraph  in  the  tariff  law  that  will 
enable  them  to  determine  with  some  degree  of  accuracy  the  volume 
and  the  value  of  imports  of  that  class  of  glassware. 


ABSTRACT  OF  JOINT  BRIEF  SUBMITTED  BY  THE  TWO  PRECEDING  WITNESSES. 

On  pages  5267-5272  the  argument  for  protection  for  the  flint-glass 
industry  is  set  forth  in  a  joint  brief,  dated  January  3,  1922.  presented 
to  the  committee  by  Mr.  William  P.  Clarke,  president  of  the  Ameri- 
can Flint  Glass  Workers'  Union  of  NTorth  America,  and  Mr.  Thomas 
W.  McCreary,  superintendent  Phoenix  Glass  Co..  Pittsburgh,  Pa. 
For  their  oral  testimony  see  pages  5189-5197  and  5234-5235.  Their 
respective  detailed  reports  on  European  conditions  in  this  industry 
will  be  found  on  pages  5197-5233  and  5235-5267. 

The  conclusions  were  based  on  the  results  of  a  comparative  study 
of  conditions  in  the  industry  in  Europe  and  America.  To  that  end 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  141 

the  authors  of  the  brief,  between  October  17.  1920.  and  March  13, 
1921,  visited  the  leading  glass  centers  of  Europe,  Mr.  McCreary  rep- 
resenting the  manufacturers  and  Mr.  Clarke  the  skilled  workmen 
employed. 

This  joint  study,  made  at  the  solicitation  of  the  president  of  the 
workmen's  organization,  revealed  conditions  under  which,  while 
workmen  were  thoroughly  organized,  the  manufacturers  were 
"  united  and  functioning  in  a  manner  that  would  not  be  permitted 
under  the  laAvs  of  our  Government." 

The  authors  were  informed  in  January,  1921,  that  the  average 
weekly  wage  of  German  skilled  workmen  did  not  exceed  500  marks. 
This,  with  a  30  per  cent  increase  last  March  and  an  anticipated  40 
per  cent  increase  at  the  close  of  1921,  would  represent  a  present 
weekly  wage  for  skilled  glassworkers  of  $5.28.  the  mark  being  taken 
as  fifty-eight  one-hundredths  of  a  cent.  In  substantiation  of  their 
claim  the  brief  presents  the  following  data : 

Electric  bulbs  (not  lamps). 


•^  -    &  '     •">•      : 

Skilled  labor, 
cost  per  100 
abroad. 

Skilled  labor, 
cost  per  100 
in  America. 

Word?lev,  England  *•  

$0.46 

J1.54 

Lemineton,  Eneland  

Edinburgh  Scotland  (average} 

.35 

42 

1.54 
1  54 

20 

1  54 

Milan  Italv.                .      .                      ...                                      .  . 

.28 

1.54 

One  comparatively  small  company  imported  2,000.000  bulbs  be- 
tween March  and  October,  1921. 

It  is  noted  that  the  joint  effect  of  changes  in  wages  and  money 
values  is  to  leave  the  present  wage  for  skilled  bulb  workers  at  about 
15  cents  per  hundred  as  compared  'with  20  cents  a  year  ago. 

Thermos  bottles  were  being  produced  in  January,  1921,  at  a  skilled 
labor  cost  per  100  inside  and  outside  pints  at  46  cents,  as  compared 
with  $2.44  in  America,  One  Xew  York  house  placed  one  order  for 
1,605.000  thermos  bottles  in  Europe. 

Lamp  chimneys  costing  $2.11  per  100  for  skilled  labor  in  America 
are  being  produced  for  12  cents  in  Germany  and  7  cents  in  Czecho- 
slovakia. Corresponding  wages  are,  respectively,  $13.75,  $1.68,  and 
$0.91  per  week.  Lamp  chimneys  are  being  laid  down  in  Chicago 
at  30  cents  a  dozen :  the  American  price  is  $1.35. 

Shades  (electric),  one  end  finished,  absorb  31  cents  per  100  for 
skilled  labor  in  Czechoslovakia  and  $2.48  in  the  United  States.  For 
the  unskilled  labor  employed  the  respective  figures  are  $2.59  and 
$55.90  per  week. 

Glass  cutters'  wages:  "Our  investigation  justifies  the  statement 
that  the  wages  paid  to  glass  cutters  are:  Belgium,  $11.56  per  week; 
Germany.  $7.14:  Czechoslovakia.  $2.44;  United  States,  $30." 

Materials:  Sand  costs  German  and  American  glass  manufacturers, 
respectively.  $0.71  and  $5.72  per  ton.  Coal,  in  Germany,  $2.91  to 
$4.74  per  ton.  as  against  $6.35  in  America.  Lime,  $2.19  per  ton  in 
Germany.  $20.50  in  America. 


142  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

Stress  is  laid  upon  the  effective  compliance,  during  the  war.  with 
United  States'  Government  demands  for  the  creation  of  plants 
making  chemical  glassware,  previously  imported.  This  was  done, 
entailing  innumerable  sacrifices  under  a  pledge  that  manufacturing 
interests  would  be  safeguarded  after  peace  had  been  secured.  This 
can  still  be  done  by  affording  manufacturers  and  workers  the  essen- 
tial protection — a  step  all  the  more  called  for  in  view  of  the  Tariff 
Commission's  testimony  to  the  superiority  of  the  domestic  produc':. 

As  regards  American  exports  and  imports  of  glassware,  the  brief 
shows  that  this  country  has  a  credit  trade  balance  in  the  first  nine 
months  of  1920  of  $16.529.002,  reduced  to  $4,131,300  in  the  corre- 
sponding period  of  1921.  The  actual  situation  is  even  worse  than  is 
thus  indicated,  as  the  value  of  foreign  exchange,  on  which  import 
values  are  based,  has  decreased  materially  in  the  interim. 

That  American  glass  workers  have  done  their  part  by  accepting 
wage  reductions — in  some  cases  of  their  own  volition — is  empha- 
sized in  a  cited  letter  from  Mr.  E.  E.  Kimble,  a  prominent,  glass 
manufacturer.  There  is.  on  the  other  hand,  no  reason  to  doubt  that 
Germany's  national  economic  council  determines  and  dictates  ex- 
port prices,  keeping  these  just  below  the  cost  in  the  importing  coun- 
tries, a  process  from  which  large  profits  accrue. 

The  brief  concludes  as  follows : 

Suggestions. — The  Finance  Committee  having  urged  that  we  offer  recom- 
mendations calculated  to  minimize  the  evil  confronting  the  flint-glass  industry 
because  of  importation,  we  venture  to  suggest : 

First.  That  the  American  valuation  plan  be  retained  in  the  tariff  bill  at  all 
hazards. 

Second.  To  avoid  a  repetition  of  the  misunderstandings  that  have  occurred 
while  paragraphs  217,  218,  and  230  of  H.  R.  7456  have  been  under  consideration 
by  the  Finance  Committee,  and  form  a  basis  for  a  more  accurate  record  as  to 
the  class  and  character  of  flint  glassware  that  may  be  imported  as  well  as 
exported  in  the  future,  thereby  lending  assistance  to  those  who  may  be  called 
on  to  legislate  in  subsequent  years,  we  suggest  that  flint  glassware  be  classified 
in  the  records  of  our  Government  under  the  following  headings : 

(A)  Illuminating  glassware:  This  shall  include  lamps,  shades,  globes,  bowls, 
balls,  reflectors,  chimneys,  etc.,  and  shall  carry  a  duty  of  60  per  cent  ad  valorem 
on  the  American  valuation  plan. 

(B)  All  glassware  named  in  Class  "A,"  but  consisting  of  more  than  one  kind 
of  glass  and  commonly   known  as  "plated"  or   "cased"   glass,  produced  by 
several  layers  of  either  clear,  opaque,  or  colored  glass,  and  all  blown  glassware 
as  described  in  Class  "A"  that  is  further  ornamented  and  enhanced  in  value 
by  engraving,  cutting,   etching,  decorating,   printing,   silvering,   gilding,  or   by 
any  other  process  or  method  embellished  or  refined,  shall  carry  a  duty  of  65  per 
cent  ad  valorem  on  the  American  plan. 

(C)  Incandescent  electric  light  bulbs  and  lamps,  with  or  without  filaments, 
shall  carry  a  duty  of  60  per  cent  ad  valorem  on  the  American  plan. 

(D)  Chemical  glassware  of  all  kinds,  whether  used  for  experimental  purposes 
in  hospitals,  laboratories,  universities,  or  colleges,  shall  under  no  circumstances 
be  admitted  for  less  than  a  duty  of  60  per  cent  ad  valorem  on  the  American  plan. 

(E)  Blown  or  hand  made  tableware,  such  as  decanters,  pitchers,  jugs,  goblets, 
wines,  tumblers,  and  kindred  ware,  whether  blown  in  a  mold  or  made  by  hand. 
shall  carry  a  duty  of  60  per  cent  ad  valorem  on  the  American  plan. 

(F)  All  glassware  named  in  Class  "  E  "  that  is  cut,  engraved,  or  decorated  in 
any  manner  to  enhance  its  value,  shall  carry  a  duty  of  65  per  cent  ad  valorem 
on  the  American  plan. 

(G)  All  pressed  glassware  and  all  other  flint  glass  not  enumerated  in  these 
specifications  shall  carry  a  duty  of  60  per  cent  ad  valorem  on  the  American  plan. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  143 

(H)  All  thermos  bottles  shall  carry  a  duty  of  65  per  cent  ad  valorem  on  the 
American  plan. 

A  supplementary  paragraph  (p.  5272)  directs  attention  to  the  existence,  under  a  Ger- 
man law,  of  "  The  National  Economic  Council,"  empowered  to  regulate  export  prices. 
The  writers  of  the  brief  are  convinced  that,  with  the  advice  of  this  council;  German 
goods  are  sold  abroad  at  prices  just  sufficiently  below  the  cost  of  corresponding  domestic 

rds  to  undersell  the  latter,  thus  enabling  German  manufacturers  to  make  large  profits, 
is   suggested    that    United    States    authorities    secure,    from    their    representatives    in 
Berlin  a  report  on  the  workings  of  this  council. 

PARAGRAPH  218. — ILLUMINATING  GLASSWARE. 

WITNESS,  AND  INTERESTS  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Nicholas  Kopp,  representing  26  manufacturers  of  illuminating  glass ; 

address,  Pittsburgh,  Pa. 
FAVORING  LOWER  DUTIES  : 

Mr.  William  Friedlaender,  representing  importers  of  lighting  glassware; 
address,  Brooklyn,  N.  Y. 

Hearings:  Pages  1570-1577. 

Costs  and  selling  prices. — German  and  Czechoslovakian  manufac- 
turers, after  paying  the  present  45  per  cent  duty,  can  land  material 
in  the  United  States  at  less  than  one-half  of  the  American  labor  cost 
alone.  German  laborers  are  to-day  receiving  from  20  to  33  per  cent 
less  in  gold  value  than  in  1914,  while  the  value  of  their  product  is 
on  a  gold  or  American  dollar  basis.  Their  average  wages  in  the 
blown-glass  industry  are  about  80  cents  per  day  of  8  hours,  as  com- 
pared with  American  wages  of  from  $8  to  $9.  German  manufacturers 
figure  their  finished  product  sales  value  as  40  per  cent  labor,  and  if 
it  is  considered  that  the  American  labor  cost  is  eight  times  that  of 
the  German,  the  American  cost  on  a  $1  article  would  be  $3.20.  Then, 
as  the  American  manufacturer  figures  one-half  of  his  total  cost  as 
labor,  the  article  would  cost  in  America  $6.40.  No  definite  figures 
of  selling  prices  of  foreign  goods  in  the  American  market  were  given 
by  the  witness.  He  stated  that  foreign  goods  were  selling  at  lower 
prices  than  the  domestic,  but  gave  no  specific  instances. 

Size  of  industry. — The  capital  investment  in  the  illuminating-glass- 
ware industry  in  the  United  States  is  $20,000,000,  producing  about 
$25,000,000  worth  of  glass.  Wages  amount  to  $12,500,000 ;  material, 
$5,000,000 ;  and  coal,  $2,500,000,  leaving  a  balance  of  about  20  per  cent 
for  overhead  and  profit.  The  product  includes  shades,  globes,  re- 
flectors, bulbs,  and  similar  articles. 

Comparability. — The  Germans  have  no  advantage  over  the  Ameri- 
cans in  the  matter  of  machinery.  The  difference  in  wages  applies 
chiefly  to  artistic  goods,  the  bulk  of  United  States  products  being 
the  cheaper. 

Rates  suggested. — First,  a  special  classification  for  illuminating 
glassware  in  Schedule  B,  and  second,  a  duty  equal  to  the  amount  of 
the  difference  between  the  cost  of  labor  used  in  the  United  States 
and  Europe,  Japan,  or  other  countries.  Under  the  present  classifi- 
cation illuminating  glassware  falling  under  several  paragraph? 
often  does  not  receive  the  protection  it  is  legitimately  entitled  to. 
A  brief  subsequently  submitted  calls  for  a  duty  of  60  per  cent  ad 
valorem  on  American  valuation  on  plain  and  65  per  cent  on  decorated 
illuminating  glassware.  The  brief  states  that  the  26  concerns  rep- 


144  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

resented  have  operated  their  plants  at  less  than  30  per  cent  capacity 
since  January  1,  1921,  and  since  July  1,  1921,  more  than  90'  per  cent 
of  their  laborers  have  been  idle.  Foreign  competition,  at  low  prices 
which  they  are  unable  to  meet,  is  responsible  for  these  conditions. 


Mr.  Kopp,  whose  testimony  is  summarized  above,  addressed  a  let- 
ter to  the  committee  on  December  16, 1921,  as  vice  president  and  gen- 
eral manager  of  the  Pittsburgh  Lamp,  Brass  &  Glass  Co.  This  was 
accompanied  by  several  letters  from  manufacturers  and  dealers,  set- 
ting forth  the  disparity  between  American  costs  of  production  and 
the  prices  of  German  imports.  The  following  examples,  typical  of 
the  whole,  are  recorded  here  as  representative  of  the  situation 
brought  to  the  attention  of  the  committee : 

The  Macbeth-Evans  Glass  Co.,  in  a  letter  of  October  15,  1921,  to 
the  Pittsburgh  Co.,  cited  the  New  York  Board  of  Customs  Apprais- 
ers as  having  checked  up  a  German  consignment  of  two  sorts  of 
glass  chimneys  billed  at  18  marks  per  dozen,  or  14  marks  home  value, 
which,  at  the  then  rate  of  exchange,  would  mean  12  American 
cents.  One  of  these  patterns,  known  as  No.  644A,  had  been  an  arti- 
cle of  heavy  output  by  the  Macbeth-Evans  Co.  at  $1.35  per  dozen, 
including  package,  but  they  had  not  made  a  single  chimney  since 
June  1,  1921. 

An  "  oval  duplex  chimney,"  referred  to  in  a  letter  of  the  same 
date,  is  covered  in  a  foreign  quotation  of  39  cents  per  dozen  as 
compared  with  $1.46  which  the  Macbeth-Evans  Co.  found  it  neces- 
sary to  charge.  The  company's  very  large  foreign  business  in  this 
chimney  has  entirely  disappeared. 

Other  letters  refer  to  the  company's  former  export  trade,  citing  a 
case  in  which  some  30-line  Ditman  chimneys,  offered  as  low  as  40 
cents  a  dozen  net  after  the  canceling  of  an  order,  were  underbid,  in 
Egypt,  by  an  Italian  firm  at  60  per  cent  less.  Similar  conditions 
are  stated  to  exist  in  the  export  trade  to  Mexico,  where  chimneys 
quoted  at  $1.15  per  dozen  by  the  Macbeth-Evans  Co.  are  being  sold 
(November  9,  1921)  at  25  cents  per  dozen. 

Gauge  glasses  can  be  purchased  at  35  cents  each,  or  less,  for  which 
the  company  quotes  $1.25. 

The  Phoenix  Glass  Co.  refers  (November  15,  1921)  to  a  lighting 
globe  for  which  their  price  is  $9.75  a  dozen,  while  a  foreign  article 
is  beinff  laid  down  at  $6. 

The  Jefferson  Glass  Co.,  writing  on  November  14,  1921,  state  that 
they  have  had  to  abandon  plans  for  the  sale  of  their  products  in 
China,  having  found  that  market  flooded  with  German  glassware. 

In  other  letters,  there  are  references  to  cancellation  of  orders  on 
account  of  " unexplainable "  low  prices  offered  for  "German  and 
European  fixtures."  One  of  these  mentions  "German  goods  being 
offered  at  such  ridiculously  low  prices"  as  to  threaten  the  closing 
down  of  domestic  factories.  In  another  case,  a  net  saving  of  50 
cents  a  dozen,  laid  down  in  Chicago,  is  anticipated  from  buying  Ger- 
man lamp  chimneys. 

Hearings :  Pages  1577-1581. 

Witness:  Mr.  William  Friedlaender,  representing  importers  of 
lighting  glassware. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  145 

Costs  and  selling  prices. — A  16-inch  white  bowl,  used  for  indirect 
lighting,  is  sold  in  this  country  by  American  manufacturers  at  from 
$13  to  $13.70  per  dozen.  The  cheapest  price  at  which  the  same  bowl 
can  be  imported  to-day  under  the  present  act,  taking  the  foreign 
valuation,  is  $14.  To  this  must  be  added  33^  per  cent  of  the  cost  or 
25  per  cent  of  the  selling  price  (10  per  cent  for  overhead  expenses, 
10  per  cent  for  selling  costs,  and  5  per  cent  for  net  profit) .  The  selling 
price  of  the  bowl  costing  the  importer  $14  is,  therefore,  $18.50  per 
dozen  as  compared  with  the  present  domestic  price  of  $13  per  dozen. 
Small  white  electric  shades  are  sold  to-day  at  $1.40  per  dozen.  After 
adding  importers'  expenses  and  profits  the  cheapest  that  this  article 
can  be  sold  by  the  importer  is  $2  per  dozen.  Oil-lamp  chimneys  are 
sold  to-day  at  $1.10  a  dozen.  The  importing  cost,  without  any  ex- 
penses other  than  duty — not  even  carting — is  $1.16  per  dozen.  There 
has  been  a  decrease  in  prices  during  the  past  two  years.  Thus,  green- 
glass  shades  for  offices  were  sold  prior  to  the  war  for  $2  to  $3  per 
dozen.  During  the  war  domestic  prices  increased  to  as  high  as  $15  per 
dozen.  With  the  first  importation  the  prices  dropped  to  about  $7.50 
per  dozen,  and  they  can  be  bought  for  about  that  price  to-day.  The 
value  of  domestic  glassware  production  is  more  than  double  that  prior 
to  the  war.  Imports  prior  to  the  war  amounted  to  6.7  per  cent  of 
the  value  of  the  domestic  product.  Importations  during  the  period 
1914-15  averaged  about  $4,000,000.  During  the  first  11  months  of 
1920  imports  amounted  to  $7,000,000.  As  foreign  prices  have  doubled 
and  in  some  cases  tripled,  the  $7,000,000  importation  in  1920  corre- 
sponds to  a  smaller  volume  than  $4,000,000  worth  of  importations  in 
1914. 

Size  of  industry. — Total  glassware  manufactures  in  the  United 
States  in  1920  amounted  to  $267,000,000. 

Comparability. — Foreign  manufacturers  have  some  advantage  in 
the  sale  of  glassware  containing  fine  decorations,  because  foreign 
decorations  are  better  than  those  put  on  here ;  the  execution  is  better 
because  men  have  been  doing  that  kind  of  work  for  generations. 

Rates  suggested. — Witness  would  have  the  duty  on  blown  glass- 
ware reduced  on  the  basis  of  the  cost  figures  outlined  above.  He 
maintains  that  10  per  cent  under  American  valuation  is  equivalent 
to  40  per  cent  based  on  foreign  valuation.  He  is  unalterably  opposed 
to  the  American  valuation  plan. 

PARAGRAPH  218. — TABLE  GLASSWARE. 

WITNESS.  AND  INTEREST  REPRESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  William  P.  Graham,  representing  Graham  &  Zenger,  decorators  and 
importers  of  glass,  New  York  City. 

Hearings:  Pages  1582-1584. 

Costs  and  selling  prices. — The  witness  produced  two  samples  of 
glass  goblets,  one  made  in  the  United  States  and  the  other  abroad 
and  sold  wholesale  by  the  American  manufacturer  for  81  cents  a 
dozen  prior  to  the  war.  The  importer's  price  was  between  75  and  80 
c«nts.  To-day,  the  importer's  price  on  goods  from  Holland  is  200 
per  cent  above  prewar.  American  prices  vary,  leading  manufacturers 
selling  at  $3  per  dozen — a  more  or  less  mythical  valuation — up  to 


146  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

$4.25  during  the  war.  To-day,  some  say  the  article  can  be  obtained 
for  $1.60  but  the  leading  manufacturers  ask  $3.  Under  the  rates  pro- 
posed in  H.  E.  7456  the  importer  would  be  obliged  to  pay  (on  Ameri- 
can valuation)  $1.20  duty  per  dozen,  instead  of  45  per  cent  under 
the  Payne- Aldrich  rates. "  It  would  figure  out  about  the  same. 

Rates  suggested. — A  decrease  of  rate  on  blown  glassware  to  15  per 
cent,  on  the  ground  that  this  is  approximately  equivalent  to  the  duty 
of  45  per  cent  on  the  foreign  valuation  imposed  by  the  Payne- Aldrich 
Act. 

PARAGRAPH  218 ;   ALSO   PARAGRAPH    1688   or   SCHEDULE    15. — ORNA- 
MENTAL GLASS. 

(See  also  Par.  230.) 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Otto  W.  Heinigke,  representing  the  National  Ornamental  Glass  Manu- 
facturers' Association  of  the  United  States  and  Canada. 

Hearings:  Pages  5050-5058  of  Schedule  15  (free  list). 

Costs  and  selling  prices. — The  labor  cost  of  ornamental  glass 
almost  entirely  determines  the  price  of  the  product.  Labor  is  70  per 
cent  of  the  cost.  The  difference  between  the  prices  on  windows 
quoted  by  German  manufacturers  and  the  cost  in  American  factories 
is  $9.46  per  square  foot.  As  American  manufacturers  can  not  elimi- 
nate this  difference,  they  would  like  to  have  ornamental  glass  on  a 
specific  rather  than  an  ad  valorem  basis.  A  table  of  comparative 
wage  scales  follows: 


Wages  i 

»er  hour. 

Germany. 

United 
States. 

Flesh'  painter 

10.20 

$1.50 

Draperv  painter  

.16 

1.00 

Ornament  painter...                 .      .  .         .             

.14 

.80 

Glazier 

.14 

.80 

Comparing  these  wage  scales,  it  is  not  surprising  that  a  window 
which  can  be  made  in  Germany  and  laid  down  in  New  York  for 
$3.26  per  square  foot  costs  the  American  manufacturer  $12.72  per 
square  foot  to  produce.  This  becomes  still  more  clear  when  it  is 
added  that  70  per  cent  of  the  total  production  cost,  including  over- 
head, is  hand  labor,  no  machine  entering  into  any  part  of  the  work, 
and  that  75  per  cent  of  the  raw  material  for  the  American  window 
must  be  imported  from  England  or  Germany,  and  pay  duty  at  not 
less  than  35  per  cent. 

Size  of  industry. — The  consumption  in  the  industry  varied  from 
year  to  year  prior  to  the  war.  One  year  it  would  total  $500,000,  in- 
cluding importations  and  manufactures,  and  another  year  it  would 
go  down  as  low  as  $200,000. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  147 

Comparability. — Archbishop  Mundelem,  of  Chicago,  writing  of 
American-made  windows,  refers  to  them  as  "  the  richest  and  most 
artistic  windows  in  any  of  our  Catholic  churches  in  this  country." 

Rates  suggested. — The  witness  requests  that,  in  paragraph  1688  of 
H.  E.  7456,  the  words  "  including  stained  or  painted  window  glass  or 
stained  or  painted  glass  windows  when  imported  by  houses  of  wor- 
ship "  be  stricken  out.  The  present  bill,  as  reported  to  the  House  of 
Representatives,  provided  in  paragraph  230  a  30  per  cent  duty  on 
stained  or  painted  glass  windows,  or  parts  thereof.  This  rate  is  not 
sufficient  to  protect  the  industry  from  German  competition  at  the 
present  rate  of  exchange  on  the  mark.  The  committee  is  asked  to 
take  these  churchmen  at  their  word  when  they  state  in  their  brief 
that  if  they  "  were  convinced  that  American  manufacturers  or  Ameri- 
can workmen  would  suffer  by  the  free  importation  of  such  articles 
they  would  not  seek  to  combat  the  petitions  presented  to  your  com- 
mittee." 

PARAGRAPH  219. — WINDOW  GLASS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  Otto  W.  Hammer,  representing  the  Cramer  Dry  Plate  Co.,  the  Hammer 

Dry  Plate  Co.,  the  Central  Dry  Plate  Co.,  St.  Louis,  Mo. 
Mr.  George  A.  Cramer,  representing  the  George  Cramer  Dry  Plate  Co..  St. 
Louis.  Mo. 

Hearings:  Pages  1584-1588. 

Witness :  Mr.  Otto  W.  Hammer,  representing  the  Cramer  Dry 
Plate  Co.,  the  Hammer  Dry  Plate  Co.,  and  the  Central  Dry  Plate 
Co. 

Costs  and  selling  prices. — Belgian  glass  can  be  imported  at  the 
present  time  for  $8  per  box.  including  all  charges.  This  pays  to-day 
a  duty  of  70  cents.  Domestic  manufacturers  charge  $9  per  box. 

Size  of  industry. — No  data  except  that  a  limited  amount  of  window 
glass  suitable  for  photographic  dry  plates  has  been  produced  in  the 
United  States.  The  quality  has  not  been  satisfactory  and  only  one 
concern  is  now  attempting  the  manufacture. 

Comparability. — Domestic  goods  are  not  equal  to  Belgian  and  the 
percentage  of  rejects  is  higher  than  for  the  foreign  article. 

Rates  suggested. — Witness  requests  that  in  H.  R.  7456  the  specific 
rates  on  window  glass  not  exceeding  150  square  inches  be  retained  at 
1£  cents  per  pound ;  that  the  rate  of  the  next  bracket  be  reduced  to 
1£  cents;  the  third  bracket  to  If  cents;  the  fourth  bracket  to  2J 
cents;  the  fifth  bracket  to  2|  cents:  the  sixth  bracket  to  3£  cents;  all 
above  that  to  4  cents. 

The  witness  further  suggests  that  a  minimum  ad  valorem  duty  of 
10  per  cent  be  placed  upon  all  goods  above  150  square  inches  and  that 
the  proviso  specifying  that  the  rates  shall  not  be  less  than  35  per 
cent  ad  valorem  be  eliminated. 

The  witness  compares  Belgian  glass  at  $8,  less  prest  f^*  T-AJ£ 
70  cents,  with  the  domestic  article  selling  for  $9.  Then,  35  per  cent 
of  $9  is  $3.15,  which,  added  to  the  bare  cost  of  the  foreign  article, 
would  raise  the  price  to  $10.25  per  box.  The  duty  is  70  cents  per  box 
under  the  Underwood  bill.  It  was  $1.05  to  $1.10  under  the  Dingley 


148  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 

bill  and  under  the  proposed  tariff  bill  there  will  be  an  increase  of 
350  per  cent. 

Remarks. — There  is  no  way  of  differentiating — it  has  been  tried — 
between  window  glass  for  photographic  dry  plates  and  window  glass 
for  ordinary  glazing.  Photographic  glass  now  selling  at  $9  sold 
before  the  war  for  $4.50  and  during  the  war  was  as  high  as  $13.25. 
The  sizes  used  for  photographic  glass  are  as  follows,  in  inches :  5  by 
? ,  6  by  8,  8  by  10,  and  10  by  12.  A  few  larger  sizes,  such  as  11  by  14, 
18  by  20.  and  20  by  24,  are  used. 

Hearings:  Pages  1588-1592. 

Witness :  Mr.  G.  A.  Cramer,  representing  the  George  Cramer  Dry 
Plate  Co. 

Cos-ts  mid  selling  prices. — Photographic  glass  can  be  obtained,  f .  o. 
b.  Antwerp,  for  $6.50  per  box,  equivalent  to  $8  duty  paid  laid  down 
in  the  United  States.  Domestic  manufacturers  are  asking  $9  for  the 
same  article  f .  o.  b.  factory. 

Size  of  industry. — Four  companies  in  the  United  States  are  manu- 
facturing dry  plates.  The  Eastman  Kodak  Co.  is  the  principal  pro- 
ducer. The  other  three  are  the  George  Cramer  Dry  Plate  Co.,  the 
Central  Dry  Plate  Co.,  and  the  Hammer  Dry  Plate  Co.,  of  St. 
Louis,  Mo. 

Comparability. — The  quality  of  American  glass  is  not  as  high  as 
that  of  the  foreign  glass. 

Rates  suggested.-*— Witness  would  eliminate  the  ad  valorem  mini- 
mum on  all  sizes  under  150  square  inches  and  reduce  the  duty  to  10 
per  cent  ad  valorem  on  the  other  brackets.  Again,  the  requirement 
relating  to  packing  window  glass  in  boxes  containing  50  square  feet 
instead  of  100  is  a  hardship,  because  importations  are  received  in 
boxes  containing  100  square  feet,  thus  saving  the  manufacturers  of 
dry  plates  in  this  country  an  increase  in  packing  charges  and  in 
freight  rates.  Witness  would  reduce  specific  rates  to  agree  with 
those  suggested  by  Mr.  Hammer,  of  the  Hammer  Dry  Plate  Co. 

PARAGRAPH  223. — MIRRORS. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Enos  Porter,  representing  the  Shelbyville  Mirror  Works,  Shelbyville, 
Ind. 

Hearings :  Pages  1592-1594. 

Costs  and  selling  prices.- — Mirrors  are  manufactured  from  a  spe- 
cially selected  quality  of  window  and  plate  glass.  Owing  to  a  change 
in  furniture  styles,  about  95  per  cent  of  the  mirrors  now  sold  are 
plain.  These  are  being  offered  by  Belgian  and  French  manufacturers 
at  11  cents  a  foot  above  the  price  of  plate  glass,  while  domestic  costs 
for  silvering  amount  to  22  to  25  cents  a  foot.  Very  few  such  mirrors 
have  come  into  this  country  as  yet. 

jSi?e>/  f  industry. — Witness  represents  150  mirror  factories  in  the 
Uniiecr-ijtates,  with  an  invested  capital  of  $8.000,000  to  $10,000,000 
and  employing  4,000  to  5,000  men  in  normal  times. 

Rates  suggested. — A  rate  of  10  cents  per  square  foot  on  mirrors  in 
addition  to  the  specific  rates  provided  for  on  the  polished  plate  glass, 
unsilvered,  provided  that  none  of  the  foregoing  shall  pay  a  less  duty 
than  35  per  cent  ad  valorem. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456.  149 

PARAGRAPHS  225,  226,  227,  AND  228. — OPTICAL  GLASS  AND  INSTRU- 
MENTS. 

WITNESSES  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Harvey  N.  Ott,  representing  the  Spencer  Lens  Co. 

Bauson  &  Lomb  Optical  Co.,  Rochester,  N.  Y.     (Brief.) 

The  Libbey  Glass  Manufacturing  Co.,  Toledo,  Ohio.   (Brief.) 

Hearings:  Pages  1594-1595. 

Witness :  Mr.  Harvey  N.  Ott. 

Costs  and  selling  prices. — The  average  cost  of  manufacturing  crude 
optical  glass  in  witness's  plant  at  the  present  time  is  $2.43  per  pound. 
Assuming  that  the  proposed  35  per  cent  ad  valorem  duty  is  enacted 
on  American  valuation,  foreign  dealers  could  still  lay  down  their 
material  in  the  United  States  market  for  $2.20  per  pound.  This  figure 
is  based  on  quotations  offered  to  dealers  in  the  United  States  at  the 
present  time. 

Optical  instruments  of  German  manufacture  are  being  sold  here 
at  prices  considerably  higher  than  those  obtained  in  the  German  mar- 
ket. Witness  cited  the  case  of  a  visitor  to  Berlin  obtaining  a  price  on 
a  German  instrument  at  900  marks,  or  approximately  $12.  This  in- 
strument sells  here  for  $36  and  the  difference  goes  into  the  pocket 
of  the  German  manufacturer.  Another  instrument,  costing  in  Ger- 
many $21.75  per  dozen  retail,  is  sold  for  export  to  America  at  $52.40 
per  dozen  wholesale.  This  difference  can  be  decreased  or  increased  at 
will  by  combinations  of  manufacturers  to  neutralize  the  effect  of 
tariffs  levied  here  and  in  other  countries.  The  German  instrument 
workers  struck  last  January  to  obtain  an  increase  in  wages  from  7 
marks  to  8-J  marks  per  hour.  They  now  receive  12  or  13  cents  an  hour, 
while  skilled  workers  here  receive  from  30  to  75  cents. 

Rates  suggested. — A  duty  of  50  per  cent  ad  valorem  in  place  of  the 
proposed  rate  of  35  per  cent  on  optical  glass  and  45  per  cent  ad 
valorem  in  place  of  the  35  per  cent  on  optical  instruments. 

Witness:  Bausch  &  Lomb  Optical  Co.,  Rochester,  N.  Y.  (Brief; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — In  nearly  all  optical  products  the  pro- 
portion of  material  averages  approximately  25  per  cent,  and  labor 
75  per  cent. 

Comparability. — The  labor  scale  in  England  and  Germany  com- 
pared to  the  United  States  is  in  the  ratio  of  at  least  1  to  4  in  the  first 
instance,  and  more  than  1  to  10  in  the  second  instance.  Prices  for 
corresponding  commodities  were  given  in  a  brief  presented  to  the 
Committee  on  Ways  and  Means  on  January  6,  1921.  Comparison  of 
prices  shows  a  very  large  differential  in  favor  of  European  makers, 
which  only  a  tariff  based  on  the  American  valuation  plan  can 
equalize. 

Attention  is  directed  to  paragraph  573  of  the  act  of  1913  permit- 
ting the  duty-free  importation  of  philosophical  and  scientific  ap- 
paratus for  religious,  philosophical,  educational,  scientific,  or  mili- 
tary purposes,  etc.  This  is  a  most  vicious  blow  to  American  industry. 
Bad  enough  before  the  war  when  exchange  values  were  normal,  it  is 
under  present  conditions  prohibitive,  and  if  permitted  to  exist  will 

77134—22 11 


150  DIGEST  OF   TARIFF   HEARINGS,  H.   R.   7456. 

close  the  shops  to  American  labor.  It  is  asked  that  this  clause  be 
eliminated,  and  that  a  duty  be  provided  which  will  encourage  the 
manufacture  and  further  development  of  apparatus  in  this  country. 

NOTE. — This  feature  is  provided  for  in  H.  R.  7456,  paragraph  360,  at  40  per 
cent  ad  valorem. 

The  brief  gives  a  list  of  manufacturers  of  different  optical  products 
in  England,  France,  and  Germany. 

Remarks. — The  brief  calls  attention  to  the  importance  of  the  in- 
dustry in  the  conservation  of  vision,  in  the  preservation  of  health,  in 
industrial  research,  in  educational  work,  and  in  the  preservation  of 
peace.  Competition  comes  principally  from  Europe :  England  in  the 
manufacture  of  glass  and  optical  instruments;  France  in  similar 
apparatus  and  lenses  for  eye  use ;  and  Germany  in  a  general  supply 
of  optical  products.  It  is  the  latter  competition  that  was  the  most 
severe  prior  to  the  war  and  is  aorain  making  extreme  efforts  to  re- 
capture the  American  market.  The  manufacture  of  optical  glas?  is 
a  key  industry,  as  no  optical  instruments  can  be  made  without  this 
product.  Before  the  war  no  optical  glass  was  made  in  this  country ; 
the  necessity  of  war  products  developed  the  industry,  and  without 
substantial  protection  it  can  not  be  maintained. 

Witness:  The  Libbey  Glass  Manufacturing  Co.,  Toledo,  Ohio. 
(Brief;  no  appearance  at  hearings.) 

Size  of  industry. — Prior  to  1914  the  market  for  gauge  glass,  both 
high  and  low  pressure,  was  entirely  controlled  by  imports  from 
Germany,  England,  and  Scotland.  German  glass  was  developed  be- 
yond the  others,  and  was  conceded  to  be  superior,  especially  in  ten- 
sile strength  and  resistance.  It  was  used  by  the  Xavy  Department 
and  the  leading  railroads.  Beginning  in  1916,  when  the  situation 
became  acute,  owing  to  the  shortage  of  foreiam  supplies,  the  Libbey 
Co.  engaged  in  extensive  experiments,  resulting  in  the  development 
of  a  glass  equal  to  any  on  the  market.  It  has  passed  the  tests  of  the 
Navy  Department.  Germany  is  now  making  efforts  to  regain  the 
trade  she  formerly  held,  and  is  selling  glasses  in  this  country  at 
prices  far  below  prewar  quotations. 

Rates  suggested. — It  is  requested  that  the  gauge  glass  industry  be 
considered  in  a  class  with  optical  glass,  and  given  protection  suffi- 
cient to  allow  it  to  survive"  the  infant  stage. 

PARAGRAPH  230. STAINED  GLASS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OF  HIGHER  DUTIES: 

Mr.  Otto  Heinigke,  representing  National  Ornamental  Glass  Manufacturers, 

New  York  City. 
Artists,  painters,  and  lead  glaziers  engaged  in  the  manufacture  of  stained 

glass  windows,  in  Philadelphia.     (Brief.) 

Hearings :  Pages  1595-1600. 

Witness:  Mr.  Otto  Heinigke. 

Costs  and  seUing  prices. — Labor  in  the  United  States  for  the 
stained-glass  window  industry  averages  $1  per  hour.  Floor  painters 
receive  $1.50,  as  against  20  cents  in  Germany.  The  entire  manufac- 
turing operation  is  handwork,  no  machinery  being  used  or  possible. 
Labor  forms  70  per  cent  of  total  cost  of  production. 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  151 

Siee  of  industry. — In  1914.  the  production  of  stained-glass  windows 
in  the  United  States  amounted  to  $212,000.  In  1920,  owing  to  the 
exclusion  brought  about  by  the  war,  the  production  had  increased  to 
$500.000.  To-day  orders  have  been  placed  in  Germany  to  the  extent 
of  $800.000  and  domestic  plants  are  running  at  30  per  cent  capacity. 

Comparability. — American  stained-glass  windows  are  comparable 
to  any  produced  abroad. 

Rates  suggested. — On  stained-glass  windows,  63  per  cent  ad 
valorem  and  the  elimination  of  the  provision  of  paragraph  1688  per- 
mitting the  importation  of  stained-glass  windows  without  payment  of 
duty  if  imported  for  presentation  to  houses  of  worship.  The  sug- 
gested ad  valorem  rate  was  obtained  by  a  comparison  of  costs  on  the 
same  window  manufactured  in  the  United  States  and  in  a  representa- 
tive German  plant,  as  explained  in  detail  in  the  Ways  and  Means 
Committee  hearings,  page  1673.  Unless  paragraph  1688  is  amended 
to  exclude  glass  windows  the  industry  can  not  survive  in  this  country, 
because  the  sale  of  windows  to  houses  of  worship  constitutes  over  90 
per  cent  of  the  entire  trade,  and  foreign  manufacturers  are  conse- 
quently competing  on  a  practically  free-trade  basis. 

The  same  witness  filed  a  brief  (Appendix,  p.  5296),  suggesting 
that  the  words  "  $9.46  per  square  foot "  be  included  in  paragraph 
230,  line  2.  between  the  words  "  thereof  "  and  "  all."  This  is  based 
on  the  difference  in  the  cost  per  square  foot  between  the  German 
and  the  United  States  window  of  the  type  almost  exclusively*  im- 
ported—$3.26  and  $12.72,  respectively,  with  the  German  mark's  fig- 
ured at  2  cents.  Cost  sheets  bearing  on  this  comparison  were  sub- 
mitted to  the  Committee  on  Ways  and  Means,  as  shown  on  pages  672 
and  677,  part  1,  of  hearings. 

The  brief  also  suggests  a  change  from  an  ad  valorem  to  a  specific 
duty,  a  principal  reason  being  the  fact  that  all  contracts  for  church 
windows  include  the  cost  of  transportation  and  erection.  The  brief 
records  an  invitation  from  a  foreign  manufacturer  to  a  representa- 
tive of  the  witness's  association,  asking  all  its  members  to  close  their 
American  factories  and  become  selling  agents  for  the  German 
factory. 

Witness:  Artists,  painters,  and  lead  glaziers  engaged  in  the 
manufacture  of  stained  glass  windows  in  Philadelphia.  (Brief;  no 
appearance  at  hearings.) 

Comparability. — The  high  standard  of  living  in  the  United  States 
necessitates  a  higher  wage  than  the  lower  standards  of  living  in 
Europe.  American  manufacturers  can  not  maintain  this  standard, 
essential  to  American  life,  and  at  the  same  time  compete  with  Euro- 
pean manufacturers.  At  the  present  time,  there  is  a  great  scarcity 
of  orders  placed  with  American  manufacturers,  as  importers  are 
taking  orders  at  such  low  prices  that  competition  with  .them  is  im- 
possible. The  result  is  that  American  factories  are  emptv;  Ameri- 
can artists,  painters,  and  lead  glaziers  are  idle,  while  Europe  is 
busily  reaping  the  harvest  made  possible  through  a  low  tariff,  in- 
cluding windows  on  the  free  list.  These  windows  are  made  almost 
exclusiA-ely  for  the  use  of  religious  houses  of  worship  and  public 
buildings,  and  to  place  them  on  the  free  list  when  so  used  means 
that  there  is  no  protection  at  all  given  to  the  American  manufac- 
turer and  to  American  labor. 


152  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   74-56. 

Rates  suggested. — The  tariff  placed  upon  stained  glass  windows. 
for  use  in  houses  of  worship  or  otherwise,  should  be  such  as  will 
overcome  the  difference  in  costs  between  American  and  foreign  pro- 
duction. 

PARAGRAPHS  232  AND  235. — LIMESTONE,  MARBLES,  ETC. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  H.  S.  Brightly,  representing  Indiana  Limestone  Quarrymen's  Associa- 
tion, Bedford,  Ind. 

Hearings :  Pages  1600-1605. 

Costs  and  setting  prices. — The  witness  states  that  foreign  produc- 
tion costs  (Bath,  England,  limestone)  plus  freight  to  Atlantic  sea- 
board points  is  less  than  the  freight  rates  from  Indiana  to  the  same 
markets.  The  selling  price  of  Indiana  limestone  at  the  quarries 
varies  from  45  cents  to  75  cents  a  cubic  foot.  The  cost  of  imported 
marbles  varies  from  70  cents  or  less  to  about  $2.  The  labor  cost  in 
domestic  quarries  is  about  50  per  cent  of  the  total  or  Sl\  cents  as  an 
average.  The  labor  cost  abroad,  in  quarries  using  American  machin- 
ery, is  15  cents  a  cubic  foot.  Workmen  in  England  get  29  cents  an 
hour  as  compared  with  an  average  of  60  cents  here.  Freight  rates  to 
New  York  are  80  cents  a  cubic  foot  from  Indiana;  to  Boston.  84 
cents;  to  Philadelphia,  Baltimore,  and  Washington,  76  cents. 

Rates  suggested. — Monumental  and  building  limestone  should  be 
classified  with  marble,  breccia,  and  onyx  in  paragraph  232,  being 
similar  to  these  products  and  competitive  with  them.  This  would 
mean  a  change  in  classification  from  paragraph  235  to  paragraph  232. 

PARAGRAPH  235. — UNPOLISHED  GRANITE, 
WITNESS.  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Seward  W.  Jones,  representing  Jones  Bros.  Co.  and  Cook.  Watkins 
&  Co.,  Boston,  Mass.,  and  Barre,  Vt. 

Hearings :  Pages  5299-5315. 

Costs  and  selling  prices. — Last  year,  with  exchange  at  $3.90  per 
pound,  the  witness  imported  a  certain  design  of  granite  which  cost, 
delivered  Boston,  Mass.,  duty  paid,  $125.  This  design  was  sent  to  six 
manufacturers  in  Minnesota  and  their  average  price  for  it  was 
$114.83.  The  witness's  company  produced  it  for  $97.23.  The  present 
selling  price,  with  a  25  per  cent  ad  valorem. duty,  foreign  value,  on 
design  No.  30861,  in  Beers  red  granite,  including  a  profit  of  13  per 
cent,  is  $179.74.  The  present  selling  price  on  the  same  design,  in  simi- 
lar domestic  merchandise  freely  offered,  is  from  $95  to  $140.  Design 
No.  967,  magna  red  imported  monument  granite,  sells  for  $157.77  in 
the  United  States,  to  net  10  per  cent.  The  same  design  of  granite 
from  Barre.  Vt.,  netting  10  per  cent,  sells  for  $144.89.  The  wages 
paid  in  the  Minnesota  district  are  a  minimum  of  $6  per  day,  and  the 
wages  paid  in  New  England  are  a  minimum  of  $8  per  day,  or  $1  per 
hour. 

Size  of  industry. — Jones  Bros.  Co.  have  a  capital  of  $500.000  in- 
vested, and  operate  three  quarries,  forming  probably  the  largest 


DIGEST   OF   TAEIFF    HEARINGS,   H.   R.    7456.  153 

granite  plant  in  the  United  States.  They  formerly  employed  230 
men,  but  now  employ  only  40.  The  industry  is  employing  about  25 
per  cent  of  the  normal  number  of  employees,  and  the  witness  has  no 
doubt  that  on  the  1st  of  January  (1922)  it  will  close  down  entirely. 
Cook,  Watkins  &  Co.  have  about  $200,000  invested.  The  Jones  Bros. 
Co.  imported  last  year  about  $20,000  worth  of  granite  out  of  a  total 
business  of  $600,000  to  $1,000,000. 

Comparability. — The  witness  exhibited  the  principal  imported 
granites — a  jet  black,  a  green,  a  very  dark  green,  and  a  reddish  green 
granite — and  stated  that  "  we  have  no  granites  in  this  country  like 
these.*'  The  only  reason  for  importing  is  to  give  variety. 

Rates  suggested. — An  increase  in  the  duty  on  granite  monuments  is 
unnecessary.  The  present  ad  valorem  duty  of  25  per  cent  prevents 
the  importation  in  any  sizable  quantity,  and  to  increase  the  duty,  or  to 
have  it  based  on  American  valuation,  would  kill  the  sale  and  deprive 
the  Government  of  revenue.  Certainly,  American  manufacturers  of 
granite  monuments  do  not  need  protection,  as  is  shown  by  the  various 
comparative  costs.  An  increase  to  25  per  cent  or  40  per  cent  Amer- 
ican valuation,  would  defeat  the  only  remaining  reasons  for  a  tariff, 
namely,  revenue.  The  witness  therefore  recommends  that  the  present 
tariff  of  25  per  cent  ad  valorem  on  granite  be  maintained  or,  if  Amer- 
ican valuation  is  adopted,  the  rate  should  be  reduced  to  correspond 
with  the  present  25  per  cent  duty  on  granite  monuments. 

SCHEDULE  3. — METALS,  AND  MANUFACTURES  OF. 
PARAGRAPH  301. — PIG  IRON  AND  SCRAP. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  W.  Logan,  representing  the  Alan  Wood  Iron  &  Steel  Co.,  Phila- 
delphia, Pa. 

Hearings :  Pages  1631-1633. 

Witness :  Mr.  J.  W.  Logan,  representing  the  Alan  Wood  Iron  & 
Steel  Co. 

Costs  and  selling  prices. — Of  the  selling  price  of  pig  iron  to-day 
70  per  cent  represents  transportation.  The  transportation  charge 
in  Pennsylvania  on  a  ton  of  pig  iron  is  greater  than  the  entire  selling 
price  of  basic  pig  iron  in  Belgium,  and  greater  than  the  price  of 
pig  iron  sold  in  eastern  markets  in  1914.  In  1914  pig  iron  was  sold 
and  delivered  in  eastern  Pennsylvania  for  $14  a  ton.  At  that  time 
the  transportation  charges  represented  about  50  per  cent  of  that  sell- 
ing price.  To-day,  pig  iron  is  selling  at  from  $19  to  $20  a  ton,  70 
per  cent  of  which  represents  transportation.  This  transportation  is 
represented  by  the  freight  rates  on  Lake  Superior  ore  and  on  coal 
and  limestone*.  The  Iron  Trade  Review  of  August  4,  1921,  quotes 
Belgian  basic  pig  iron  at  175  francs  per  metric  ton,  equivalent  to 
$13.30  per  ton.  Belgian  pig  iron  can  be  delivered  on  the  Atlantic 
seaboard  for  this  price,  plus  not  over  $5  per  ton. 

Scrap  iron  and  steel,  unlike  pig  iron,  is  not  a  manufactured  prod- 
uct, but  results  from  the  tearing  down  of  buildings,  etc.,  on  account 
of  obsolescence  or  otherwise.  Scrap  iron  ordinarily  sells  for  about 
twro-thirds  of  the  price  of  pig  iron. 


154  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

Rates  suggested. — Restoration  of  the  duty  of  $2.50  per  ton  on  pig 
iron  contained  in  the  act  of  1909.  The  duty  on  scrap  should  be  at 
least  $1.50  per  ton  less  than  the  duty  on  pig  iron. 

ALLOY  ORES. 
PARAGRAPH  302. SILICON. 

WITNESS,  AND  INTERESTS  REPRESENTED. 
FAVORING  LOWER  DUTIES: 

Mr.  Harold  H.  Burton,  Cleveland,  Ohio,  representing  Dr.  Aladar  Pacz, 
director  of  scientific  research,  Alpax  Research  Laboratories,  of  Cleve- 
land ;  the  General  Aluminum  &  Brass  Manufacturing  Co.,  of  Detroit ; 
Mr.  J.  W.  Knapp,  of  the  Precision  Dye  Casting  Co.,  of  Syracuse,  N.  Y. ; 
the  Hon.  William  L.  Day,  formerly  judge  of  the  United  States  District 
Court  for  the  Northern  District  of  Ohio,  and  now  associated  with  Dr. 
Pacz  in  the  development  of  silicon  and  aluminum  alloys;  Thomas  E. 
Monks,  Cleveland,  Ohio,  vice  president  of  the  Guardian  Savings  & 
Trust  Co. 

Hearings:  Pages  1633-1641. 

Costs  and  selling  prices. — Silicon,  used  in  the  manufacture  of 
Alpax  alloy,  a  combination  of  silicon  and  aluminum  (85  per  cent 
aluminum  and  15  per  cent  silicon),  sells  at  present  at  14  cents  per 
pound.  In  its  production,  by  means  of  water  power,  from  silica  sand 
the  labor  cost  is  a  negligible  quantity. 

Size  of  industry. — In  the  United  States  there  is  only  one  consumer 
of  silicon — the  General  Aluminum  &  Brass  Manufacturing  Co. 
While  ferrosilicon  has  been  manufactured  in  large  quantities  in  the 
United  States,  silicon  metal,  or  silicon  with  5  per  cent  or  less  of  iron, 
has  been  produced  in  this  country  in  extremely  limited  quantities. 
Practically  all  silicon  metal  has  been  imported  from  France  and 
Switzerland. 

Rates  suggested. — The  free  importation  of  metallic  silicon  is  recom- 
mended. Amend  paragraph  302  by  striking  out  the  words  "  and  sili- 
con metal "  immediately  following  the  words  "  90  per  cent  or  more 
of  silicon  "  in  line  20  on  page  40  of  the  Fordney  bill,  and  by  inserting 
in  the  paragraph  after  the  word  "therein"  in  line  22  on  page  40, 
the  words  "  Provided,  however,  that  silicon  containing  5  or  less  per 
cent  of  iron  shall  be  classified  as  silicon  metal  and  that  no  duty  should 
be  imposed  upon  it  or  upon  its  silicon  content." 

The  witness  contends  that  silicon  metal  or  silicon  containing  5  per 
cent  or  less  of  iron  is  entirely  distinct  from  ferrosilicon.  used  in  the 
manufacture  of  steel.  The  market  for  silicon  metal  depends  solely  upon 
the  silicon  aluminum  alloy  known  as  Alpax.  Silicon  is  now  being 
manufactured,  among  other  places,  in  France  and  in  Switzerland, 
and  it  is  being  purchased  at  14  cents  per  pound  by  the  General  Alumi- 
num &  Brass  Manufacturing  Co.,  the  principal  present  licensee  under 
the  United  States  Alpax  patent.  The  Fordney  bill,  by  placing  a  duty 
of  8  cents  per  pound  on  this  grade  of  silicon,  would  raise  the  price 
of  silicon  metal  from  14  cents  to  22  cents  per  pound. 

Remarks. — In  a  letter  of  September  22,  1921,  addressed  to  the  chair- 
man of  the  Senate  Committee  on  Finance,  Mr.  Frederick  M.  Becket, 
chief  metallurgist  of  the  Electro  Metallurgical  Co.,  Xew  York  City, 
takes  exception  to  certain  statements  made  by  the  witness.  In  par- 
ticular, be  characterizes  as  "  absolutely  erroneous "  all  statements, 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  155 

whether  in  testimony  or  in  brief,  to  the  effect  that  "silicon  metal 
containing  5  or  less  per  cent  of  iron  has  not  been  obtainable  in  the 
United  States  up  to  a  date  as  late  as  July  of  this  year." 

After  referring  to  interviews  and  correspondence  embodying  com- 
mendation, on  the  part  of  Dr.  Pacz,  regarding  researches  and  experi- 
ments in  this  field  by  the  Electro  Metallurgical  Co.  Mr.  Becket  points 
out  that  Dr.  Pacz,  in  the  face  of  his  commendation,  is  now  asking  that 
this  substance  come  in  free.  Mr.  Becket  goes  on  to  say  that,  since 
September,  1920,  his  company  has  regularly  furnished  to  manufac- 
turers of  aluminum -silicon  castings,  a  high-grade  silicon  alumi- 
num alloy  containing  approximately  60  per  cent  silicon  and 
40  per  cent  aluminum,  guaranteed  to  have  an  iron  content  of  not 
over  1  per  cent,  and  during  1921  the  company  has  furnished  to  those 
manufacturers  for  the  same  purpose  silicon  metal  containing  less 
than  1  per  cent  iron  and  over  97  per  cent  silicon.  In  January,  1921, 
the  company  had  in  stock  about  300,000  pounds  of  the  last-named 
product.  Moreover,  the  company  has  produced  silicon  metal  in  com- 
mercial quantities  containing  over  98  per  cent  silicon  and  less  than 
one-half  of  1  per  cent  iron. 

PARAGRAPH   302. MAXGAXESE  ORE. 

WITNESS,  AND  INTERESTS   REPRESENTED. 

FAVORING  ntwusED  OR  HIGHER  DUTIES  : 

Mr.  Charles  W.  Potts,  representing  himself  and  producers  of  manganiferous 
ores  in  Minnesota  and  of  high-grade  manganese  in  Arkansas ;  address, 
Deerwood,  Minn. 

Hearings :  Pages  1675-1696. 

Size  of  industi*y. — The  witness  had  been  induced  by  Government 
requests  and  demands  to  enter  the  mining  of  manganese,  and  the  com- 
panies now  represented  have  spent  about  three-quarters  of  a  million 
dollars  in  attempting  to  produce  these  manganese  ores.  Under  the 
stimulus  of  governmental  demands  in  war  time,  $15,000,000  was  in- 
vested in  developing  the  manganese-ore  industry. 

Reserves. — After  stating  that  there  are  30  States  in  the  Union  in 
which  manganese  ore  is  known  to  exist,  the  witness  referred  to  maps 
showing  the  method  employed  in  investigating  the  mineral  deposits 
of  the  properties  in  which  he  and  his  associates  are  financially  inter- 
ested. He  laid  stress  on  the  accuracy  of  the  work  which  led  him  to 
conclude  that  there  are  reserves  amounting  approximately  to 
10,000.000  tons  of  high-grade  manganese  ore — containing  about  40" 
to  50  per  cent  manganese — 20,000,000  tons  of  ferruginous  manganese 
ore,  containing  from  10  to  35  per  cent  manganese,  and  36.000,000  tons 
of  manganiferous  iron  ores.  He  expressed  the  belief  that  if  those 
ores  were  all  utilized  in  the  steel  business,  as  he  believes  to  be  possible, 
the  manganese  reserves  of  the  country  would  last  as  long  as  the  iron- 
ore  reserves. 

In  his  brief  Mr.  Potts  states  that  the  data  accumulated  point 
toward  a  reserve  tonnage  of  domestic  manganese  ore  as  follows : 

Tons. 

High-grade  manganese.  35  per  cent  and  over 10, 000, 000 

Ferruginous  manganese,  10  to  35  per  cent 20,000,000 

Manganiferous  iron  ore,  5  to  10  per  cent  manganese 45,000,000 


156  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Sixty  times  as  much  ore  had  been  taken  out  of  the  Butte  district 
as  the  Government  geologists  conceded  to  exist  there  and,  according 
to  commercial  estimates,  there  are  several  million  tons  of  high-grade 
manganese  ore  still  remaining.  It  should  be  borne  in  mind,  the  wit- 
ness said,  that  there  are  462  other  districts  in  the  United  States  capa- 
ble of  producing  manganese  ore. 

The  Tariff  Corn-mission's  report  on  manganese — No.  21,  1920. — Re- 
marking that  the  purpose  of  any  report  is  to  achieve  a  result  of  con- 
servative accuracy,  the  witness  alleged  that  an  obvious  injustice  had 
been  done  in  No.  "21  of  the  reports  of  the  United  States  Tariff  Com- 
mission for  1920.  There  were,  he  continued,  so  many- inaccuracies 
in  the  statements,  and  the  method  of  presenting  data  was  so  irregular, 
that  it  is  unsafe  to  accept  the  statements  and  reports  therein  con- 
tained as  final  and  conclusive.  He  characterized  as  incorrect  the  state- 
ment that  there  were  in  this  country  in  1918  only  699,750  tons  of  high- 
grade  manganese  ore,  with  an  additional  tonnage  of  1,130,000  tons. 
That  estimate  was  based  on  the  Geological  Survey  and  various  other 
publications,  a  number  of  which  are  five  or  six  years  old  and  out  of 
date  as  far  as  manganese  ore  reserves  in  this  country  are  concerned. 
While  part  of  the  information  is  taken  from  publications  dated  in 
1918  or  later,  much  of  it  is  compiled  from  investigations  made  years 
previously  and  before  the  extensive  development  of  manganese  min- 
ing in  1918.  Other  parts,  obtained  by  superficial  investigations 
hurriedly  made  during  the  war  period,  do  not  reflect  the  accuracy 
required  by  operating  mining  companies.  The  report,  while  citing 
Mineral  Industry,  a  highly  accredited  publication,  fails  to  take  into 
account  the  context  of  the  cited  report. 

According  to  the  brief,  the  body  of  the  Tariff  Commission's  report 
on  the  manganese  situation  is  unfair  to  that  industry  in  not  accu- 
rately quoting  the  authorities  it  cites  and  in  the  method  employed  in 
presenting  data.  The  inaccuracies  are  interwoven  with  reliable  data 
in  such  a  manner  that  close  scrutiny  is  required  by  anyone  not  inti- 
mate with  the  subject  to  differentiate  between  sound  and  unsound 
conclusions,  "  the  effect  of  which  is  primordially  inimical  to  the  man- 
ganese industry  of  the  United  States." 

According  to  the  report,  "  the  amount  of  high-grade  ore  *  *  * 
in  sight  has  been  estimated  at  only  699,750  tons,  with  1,130,000  tons 
more  in  prospect."  This  quotation  of  the  authority  cited  (U.  S. 
Geol.  Sur.,  1918)  is  inaccurate  and,  without  close  scrutiny,  leads  to 
the  unsound  conclusion  that  the  only  ore  that  can  be  expected  is  the 
minimum  tonnage  quoted. 

The  brief  states  that  there  is  not  much  difference  between  the 
Brazilian  ores,  fallen  below  the  old  standards  until  anything  over 
40  per  cent  is  acceptable,  and  the  domestic  high-grade  ores  "  about 
40  per  cent,"  yet  such  facts  are  either  withheld  in  part  or  presented  in 
such  a  manner  that  the  closest  scrutiny  must  be  employed  to  pre- 
vent a  perverted  conclusion.  Furthermore,  information  from  re- 
liable sources,  favorable  to  greater  tonnage  of  reserves,  is  classified 
in  the  report  as  "  unauthenticated "  and  relegated  to  obscure  foot- 
notes. Again,  in  spite  of  their  importance,  the  ferruginous  man- 
ganese ores  are  confused  with  the  lower  grades  and  their  existence 
is  ignored  in  the  report. 

The  iron  content  of  the  manganiferous  iron  ores  and  the  ferru- 
ginous manganese  ores  is  of  great  economic  importance,  yet  the  re- 


DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456.  157 

port  makes  no  mention  of  that  fact.  The  failure  to  state  that  the 
other  constituent  of  these  ores  is  iron  rather  than  useless  rock  does  an 
injustice  to  the  subject  of  reserves  and  does  not  achieve  the  con- 
servative accuracy  expected  in  an  unbiased  report. 

Reports  of  the  United  States  Geological  Survey — Government  cal- 
culated estimates  contrasted  with  the  facts. — According  to  the  re- 
ports of  the  United  States  Geological  Survey,  the  figure  699.750  rep- 
resents the  total  tonnage  of  domestic  high-grade  manganese  ore  re- 
serves actually  proved  in  1918,  and  is  still  considered  by  the  Survey 
and  the  Tariff  Commission  as  the  only  authentic  estimate.  The  brief 
assumes  that  the  Government  geologists  have  approached  the  investi- 
gation of  domestic  reserves  with  pessimism,  and  goes  on  to  refer  to  a 
visit  paid  by  the  witness  to  the  geologist  of  the  Geological  Survey 
who  examined  the  Arkansas  district  and  whose  estimate  of  the  man- 
ganese ore  of  the  Batesville  (Ark.)  district  was  about  250,000  tons. 
He  gave  the  witness  the  figures  of  his  estimates  of  various  properties, 
mentioning  one  being  operated  by  the  witness.  According  to  the 
geologist's  estimate  of  a  certain  grade  of  ore,  there  were  only  2.000 
tons  on  that  particular  property,  although  last  year,  in  a  little  over 
60  days.  2,600  tons  were  mined  with  work  barely  started.  From  the 
available  data  the  witness  believes  that  property  to  have  more  ore 
on  it  than  the  report  of  the  Geological  Survey  credits  to  the  whole 
Batesville  district  of  Arkansas. 

The  World  Atlas  of  Commercial  Geography,  published  this  year, 
1921,  is  compiled  from  information  available  in  1913,  and  the  latest 
report  issued  on  manganese  and  manganiferous  ore  reserves  in  the 
United  States,  dated  April  6,  1921,  is  based  upon  out-of-date  infor- 
mation. 

The  witness  referred  in  his  testimony  to  investigations  and  reports 
made  by  E.  C.  Harder  and  D.  F.  Hewitt,  geologists  of  the  Geologi- 
cal Survey,  in  1918,  showing  domestic  reserves  of  manganese  ore 
amounting  to  699,750  tons,  including  2,800  tons  in  the  Butte  district 
of  Montana.  Their  report  had  been  printed  and  reprinted  four 
times  up  to  April  6,  1921,  the  Butte  volume  of  2,800  tons  appearing 
each  time,  although  166,650  tons  had  since  been  shipped  from  that 
district,  as  shown  by  reports  of  the  Geological  Survey.  This  166,650 
tons  was  manganese  ore. 

Referring  to  another  portion  of  the  Geological  Survey  reports  of 
1918  describing  the  deposits  in  the  Butte  district,  the  witness  drew 
attention  to  the  statement  made  that  while  no  good  basis  exists  for 
computing  the  exact  tonnages,  descriptions  given  by  those  who  have 
had  opportunity  to  observe  them  leave  no  room  for  doubt  that  the 
aggregate  amount  of  such  bodies  is  very  large.  In  spite  of  that 
statement,  he  remarks,  these  large  deposits  of  manganese  were  totally 
ignored  by  the  writers  when  tabulating  the  total  domestic  reserves. 

After  claiming  to  have  proved  that  the  Geological  Survey  esti- 
mates of  reserve  tonnages  of  manganese  ore  in  the  United  States  are 
inaccurate  and  that  all  of  these  inaccuracies  tend  to  minimize  the 
tonnage  and  importance  of  domestic  grades,  the  brief  describes  as 
unfair  any  estimate  of  the  life  of  domestic  reserves  which  does  not 
take  into  account  all  classes  thereof  and  all  satisfactory  metallurgi- 
cal practice.  The  brief  proceeds  to  refer  to  data  collected  within  the 
last  few  months  proving  that  the  tonnages  of  reserve  ore  are  vastly 


158  DIGEST  OF  TARIFF   HEARINGS,   H.  R.   7456. 

in  excess  of  Government  estimates. in  practically  every  instance  in 
which  a  check  has  been  made. 

Thus,  a  mine  in  the  Batesville  district  of  Arkansas,  credited  with 
onh'  5,000  tons  of  high-grade  managanese  ore,  has  been  proved  by  the 
owners  to  contain  45,000  tons  with  an  approximate  50  per  cent  metal- 
lic manganese  content.  They  also  claim  75,000  tons  of  probable  ore 
and  350,000  of  possible  ore  as  a  result  of  their  investigation. 

Another  mine  comprising  600  acres  in  the  Batesville  district  of 
Arkansas,  credited  with  2,000  tons  of  ore  of  a  certain  grade,  in  addi- 
tion to  10,000  tons  of  high-grade  ore,  gives  indications  of  a  total  ton- 
nage of  approximately  2,500,000  tons.  Of  this  approximately  125,000 
tons  is  high-grade  manganese  ore  of  over  46  per  cent  metallic  man- 
ganese. 

The  reports  of  the  Geological  Survey  for  the  entire  Batesville  dis- 
trict estimate  manganese  reserves  as  follows:  Ten  thousand  tons  of 
high-grade  ore,  with  an  additional  reserve  prospect  of  160,000  tons, 
and  a  tonnage  of  160,000  tons  of  ore  containing  5  to  35  per  cent  man- 
ganese. As  against  this  the  brief  cites  the  sworn  statement  of  a  min- 
ing engineer  familiar  with  the  district,  claiming  the  existence  of  ap- 
proximately 5,000,000  tons  of  ore  containing  35  per  cent  or  more  of 
manganese. 

As  regards  the  Geological  Survey  estimate  of  2,800  tons  of  high- 
grade  manganese  ore  for  the  Butte  district  of  Montana,  the  owners 
of  one  mine  give  the  tonnages  of  their  property  as  follows:  Devel- 
oped ore,  198,000  tons ;  probable  ore,  800,000  tons ;  possible  ore,  840,000 
tons;  making  a  total  of  1,850,000  tons  of  proven  ore  and  additional  ore 
in  prospect,  grade  37  to  40  per  cent. 

In  the  case  of  the  Cuyuna  Range  in  Minnesota,  25  properties  are 
estimated  in  the  Geological  Survey's  report  to  have  contained  in  1917 
13,628,000  tons  of  manganiferous  ore  ranging  from  5  to  35  per  cent 
manganese  content.  According  to  the  estimates  of  a  prominent  ex- 
plorer and  developer  of  this  range,  who  has  put  down  approximately 
700  drill  holes  in  the  district,  there  are  approximately  36,000,000  tons 
of  this  grade  of  ore  disclosed,  with  an  additional  tonnage  in  prospect 
bringing  the  amount  to  between  50.000,000  and  60,000,000  tons,  of 
which  25  per  cent  carries  more  than  12  per  cent  metallic  manganese. 

The  result  of  up-to-date  investigations  is  to  prove  that  the  reserves 
of  high-grade  manganese  ore  are  approximately  10,000,000  tons ;  that 
there  are  approximately  20,000,000  tons  of  ferruginous  manganese 
ores ;  and  that  ores  of  this  class  contain  10  to  35  per  cent  manganese 
and  sufficient  iron  ore  to  make  them  highly  advantageous  in  steel 
making.  Similar  investigations  prove  that  the  Cuyuna  Range  of 
Minnesota  has  a  vast  tonnage  of  manganiferous  iron  ores,  all  of  which 
have  been  satisfactorily  used  in  steel  making. 

Rates  suggested. — The  schedule  in  the  Fordney  bill  as  approved  by 
the  House  meets  with  witness's  approval.  If  this  duty  of  1  cent  per 
pound  on  the  metallic  content  is  retained  in  the  bill,  the  domestic- 
mines  will  be  able  to  supply  from  50  to  75  per  cent  of  the  annual  re- 
quirements during  the  first  few  years  and  eventually  the  entire  yearly 
requirements.  All  ore  containing  15  per  cent  or  more  of  manganese 
should  be  included  in  this  schedule.  Unless  the  manganese-bearing 
ores  containing  manganese  down  to  15  per  cent  are  made  dutiable, 
importers  would  be  able  by  manipulation  and  mixing  to  bring  in  vast 
quantities  of  foreign  manganese  and  thus  evade  the  law.  It  is  also 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  159 

important  that  the  manganese  alloys  be  protected,  in  order  to  pre- 
Tent  foreign  manganese  from  flooding  American  markets. 

PARAGRAPH    302. MAXGANESE-BEARING    ORE. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  George  H.  Crosby,  representing  himself,  as  discoverer  and  explorer  of 
minerals;  address,  Duluth,  Minn. 

Hearings :  Pages  1669-1674. 

Size  of  industry. — Since  the  discovery  of  the  Cuyuna  iron  and  man- 
ganese range  about  2,800  holes  have  been  drilled,  varying  in  depth 
from  60  to  1,000  feet.  Of  these  2,800  holes,  the  witness  personally 
drilled  700  on  something  like  20  properties,  8  of  which  have  become 
producers  of  manganese-bearing  ore.  During  1918  there  was  shipped 
from  the  Cuyuna  Range  860,000  tons  of  manganese-bearing  ore. 
From  all  localities  there  was  shipped  305,000  tons  of  high-grade  man- 
ganese ore,  running  40  per  cent  or  better. 

Upward  of  $7,000,000  has  been  spent  in  development  on  the  Cu- 
yuna Range,  and  at  the  present  time  only  2  mines  are  operating, 
against  24  during  1918  under  war  demand. 

Out  of  23  mines  on  the  range  producing  manganese  ore,  there  is 
not  one  running  and  producing  ore  to-day.  Out  of  39  mines  on  the 
range  formerly  producing  manganese  and  iron  ore,  there  are  only  2 
mines  running.  The  witness  personally  spent,  in  trying  to  produce 
manganese  for  war  purposes,  $1,450,000  in  the  development  of  mines 
in  Minnesota. 

tfeserve. — The  reserves  in  the  United  States  are  as  follows :  Thirty- 
six  million  tons  of  ferruginous  manganese  ore,  over  20,000,000  tons  of 
high-grade  manganese  ore  running  over  40  per  cent  manganese.  Ap- 
proximately 25  per  cent  of  the  36,000,000  tons,  or  9.000,000  tons,  of 
the  manganese-bearing  ore  of  the  Cuyuna  Range  contains  manganese 
12  per  cent  or  better.  The  other  75  per  cent  of  the  manganese-bearing 
ores.  27.000,000'  tons,  contains  approximately  7  per  cent  manganese. 
This  75  per  cent  is  all  capable  of  utilization  in  making  high-manga- 
nese pig  iron. 

According  to  the  reports  issued  by  the  Geological  Survey,  there 
are  only  13.628,000  tons  of  manganese-bearing  ore,  containing  5 
to  35  per  cent  manganese,  in  the  Cuyuna  Range  district.  No  fig- 
ures are'given  for  any  additional  reserve  in  prospect.  There  were  in 
1913,  24  mines  on  the  Cuyuna  Range  producing  or  preparing  to  pro- 
duce manganese-bearing  ore.  The  witness  can  name  two  out  of  this 
group  that  contain  more  ore  than  the  Geological  Survey  says  exists 
in  the  whole  district.  The  Sagamore  contains  11,000,000  tons;  the 
Ida  May,  4,000,000.  The  proved  tonnage  of  Cuyuna  Range  is 
36,000,000  tons.  The  Government  report  minimizes  the  importance 
of  the  ores  of  the  Cuyuna  Range  by  ignoring  the  probable  ore. 
There  is  an  additional  tonnage  of  probable  ore,  not  capable  of  defi- 
nite calculation  but  of  certain  esfcstence,  which  would  undoubtedly 
increase  the  reserve  tonnages  to  approximately  50,000,000  tons. 

Practice. — Standard  grades  of  iron  ore  contain  almost  no  manga- 
nese. The  prevailing  furnace  practice  consists  in  adding  the  manga- 
nese at  the  time  of  pouring  the  steel.  When  they  use  80  per  cent 


160  DIGEST   OF   TARIFF    HEARINGS,   H.   K.   7456. 

ferfomanganese.  they  use  about  15  pounds  to  the  long  ton  in  the 
bath,  added  in  lump  form  while  the  steel  is  in  the  molten  state.  It 
is  not  added  for  hardening  properties  but  for  its  purifying  effect. 
If  the  prevailing  practice  utilized  the  manganese-bearing  iron  ore,  no 
tariff  would  be  needed  to  protect  it,  but  the  steel  manufacturer  pre- 
fers to  use  the  manganese  ore  coming  from  foreign  mines  instead 
of  the  domestic  supply. 

The  manganese  content  of  the  manganese-bearing  ores  is  capable 
of  utilization  in  the  manufacture  of  steel.  Two  different  methods 
have  been  practiced,  one  comprising  the  manufacture  of  a  manga- 
nese alloy  known  as  spiegeleisen,  used  in  the  Bessemer  process  of 
steel  making;  the  other  in  the  making  of  high  manganese  pig  iron, 
which  also  has  been  used  in  steel  making.  This  eliminates  the  add- 
ing of  manganese  to  the  steel  bath  at  the  time  of  pouring  in  the  large 
amounts  now  used  where  all  the  manganese  is  added  in  the  form  of 
80  per  cent  ferromanganese.  There  are  numerous  publications  tend- 
ing to  prove  that  this  practice  is  entirely  satisfactory,  producing  a 
steel  of  a  better  grade  than  that  produced  by  other  practices. 

Equivalent. — The  average  content  of  manganese  in  the  36,000,000 
tons  of  manganese-bearing  ores  of  the  Cuyuna  Kange  district  of 
Minnesota  is  about  9  per  cent.  Thirty-six  million  tons  of  9  per  cent 
manganese-bearing  ores  is  equivalent  to  approximately  5,000,000  tons 
of  high-grade  manganese  ore  containing  45  per  cent  manganese. 

Kates  suggested.— Unless  manganese  ore  has  a  protective  tariff. 
the  domestic  mine  owners  and  operators  will  be  obliged  to  abandon 
their  properties,  as  they  can  not  compete  with  the  cheap  mining  costs 
of  ores  from  Brazil,  India,  and  Russia,  where  low  labor  costs  pre- 
vail. The  witness  would  have  the  minimum  grade  placed  at  20 
per  cent  instead  of  the  30  per  cent  proposed  in  the  bill.  At  30  per 
cent  it  would  permit  Spanish  ore  to  come  in  free,  as  Spain  has  large 
quantities  of  ore  of  the  same  character  as  that  in  the  Cuyuna  Range. 
This  Spanish  ore  is  mined  with  cheap  labor  and  transportation,  and 
its  admission  would  affect  the  domestic  industry. 

PARAGRAPH    302. MANGAXESE    ORE. 

Witness:  Mr.  George  Otis  Smith,  Washington.  D.  C.,  United 
States  Geological  Survey. 

Comment  on  the  charges  of  Mr.  C.  W.  Potts. — In  communications 
dealing  with  Mr.  Potts's  testimony  and  brief,  the  director  of  the 
Survey  characterizes  as  untrue  Mr.  Potts's  charges  that  the  Survey's 
estimates  of  manganese  ore  reserves  are  based  upon  superficial  exami- 
nations and  obsolete  reports,  and  that  the  examinations  were  under- 
taken with  pessimism.  The  further  charges  that  the  reports  of  re- 
serves in  the  Butte  district  are  not  consistent  with  reports  of  pro- 
duction and  that  data  from  the  World  Atlas  of  Commercial  Geology 
were  based  upon  material  available  in  1913  are  not  only  untrue  but 
arise  out  of  Mr.  Potts's  very  superficial  examination  of  and  careless 
reference  to  the  respective  publications.  Mr.  Potts  has  refused,  for 
the  present  at  least,  to  give  the  Survey  access  to  the  data  and  methods 
by  which  his  estimate  of  10,000,000  tons  of  42  per  cent  ore  was 
reached.  Further,  by  partial  statements  and  by  the  incorrect  use  of 
data  submitted  to  him,  he  has  reached  conclusions  which  are  ob- 
viously unsound. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    74-56.  161 

There  is  fair  assurance  of  the  existence  in  domestic  deposits  of 
about  1.800,000  tons  of  material  containing  more  than  35  per  cent 
manganese— a  quantity  sufficient  to  make  about  75,000,000  tons  of 
steel  by  present  practices.  If  the  larger  reserves  of  lower-grade 
material  be  considered,  making  proper  allowance  for  necessary  ad- 
justments in  steel  plants  and  processes,  the  combined  reserve's  are 
probably  sufficient  to  make  about  twice  as  much  steel,  or  150,000,000 
tons. 

The  Survey's  estimate  contains  two  figures — one  of  dependably  re- 
coverable quantities,  and  the  other  of  additional  reserves  in  pros- 
pect. That  there  may  be  more  manganese  ore  in  the  United  States 
than  the  sum  of  these  two  quantities  has  not  been  denied  by  the 
Survey.  It  has  simply  been  stated  that  in  the  light  of  the  work  done 
during  1917  and  1918,  including  search,  exploration,  and  examina- 
tion, it  seems  highly  improbable  that  there  is  twice  as  much  as  the 
1.800,000  tons  of  high-grade  manganese  ore  included  in  this  estimate. 

The  testimony  and  Ii4ef  of  Mr.  C.  W.  Potts. — Mr.  Potts  admitted  to 
Mr.  Hewett,  a  representative  of  the  Geological  Survey,  that  he  ob- 
tained his  estimate  by  multiplying  the  Survey's  estimate  by  a  factor ; 
he  flatly  refused,  however,  to  show  Mr.  Hewett  the  data  or  to  explain 
the  methods  by  which  he  arrived  at  his  own  estimate  of  manganese 
reserves. 

Answer  to  Mr.  Pottos  objections  to  the  Survey  estimate  of  man- 
ganese reserves. — 

1.  In  the  paper  by  Messrs.  Harder  and  Hewett,  of  the  Survey, 
to  which  frequent  reference  was  made  by  Mr.  Potts,  it  is  stated: 
"This  part  of  the  work   (estimation  of  reserves)   was  approached 
with  a  certain  apprehension,  for  it  was  recognized  that  for  most  dis- 
tricfls  neither  the  extent  of  explorations  nor  time  available  for  the 
work  would  permit  the  order  of  accuracy  that  most  mining  com- 
panies require  as  guides  in  operating."     This  statement  is  clearly 
the  basis  for  Mr.  Potts's  charge  that  the  investigations  were  ad- 
mittedly superficial  (p.  1677)  and  that  the  work  was  not  thorough 
(p.  1686). 

Appended  to  Mr.  Smith's  comments  is  a  tabulated  summary  of 
reserves  prepared  by  Messrs.  Harder  and  Hewett,  discriminating  be- 
tween "  detailed  "  and  "  reconnaissance  "  work  and  indicating  whether 
or  not  estimates  might  warrant  review.  This  is  alluded  to  as  show- 
ing that  the  examinations  were  not  superficial. 

Of  the  1,181  deposits  considered,  588  lie  in  districts  where  the  work 
was  of  detailed  character,  involving  the  preparation  of  geologic  maps. 
It  will  be  noted  that  the  reserves  of  high-grade  ore  in  these  districts 
make  up  80  per  cent  of  the  total  in  the  United  States,  and  almost  the 
entire  amount  of  the  additional  reserves  in  prospect  if  the  carbonate 
ore  of  the  Butte  district  be  omitted.  The  reconnoissance  work  was 
done  in  districts  mostly  offering  small  promise  of  reserves  of  high- 
grade  ore,  although  a  number  of  districts  containing  low-grade  ore 
were  considered  in  this  manner  only.  The  Survey  has  never  had  any 
doubt  that  the  reserves  of  low-grade  manganese  ore  were  adequate  to 
meet  any  needs  that  the  steel  industry  would  impose  for  some  years 
to  come. 

2.  It  is  stated  (pp.  1684  and  1694)  that  the  data  upon  which  the 
Survey's  estimates  of  reserves  are  based  are  obsolete. 


162  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

It  should  be  stated  in  this  connection  that,  of  the  nine  regions  cited, 
subsequent  reports  to  the  Survey  show  that  little  or  no  exploration 
work  was  done  after  examination  by  the  Survey  geologists. 

An  analysis  of  the  table  of  reserves  prepared  by  Messrs.  Harder 
and  Hewett  shows  that  of  the  total  estimate  of  high-grade  reserves, 
417,000  tons,  or  approximately  60  per  cent  of  the  proved  total,  are  in 
districts  where  the  field  work  was  completed  as  late  as  June.  July, 
August,  September,  and  October,  1918.  After  considering  the  table  of 
reserves  in  the  light  of  the  reports  submitted  to  the  Survey  by  mine 
operators  up  to  the  end  of  1920,  it  appears  that  the  estimates  for  the 
districts  containing  more  than  half  of  the  reserve  of  high-grade  ore 
are  still  reliable.  In  several  of  the  districts  containing  the  remainder, 
recent  work  has  probably  justified  an  increase  in  the  estimates. 

3.  It  is  indicated  by  Mr.  Potts  (pp.  1690  and  1691)  that  the  pro- 
duction reports  are  not  consistent  with  the  statements  of  reserves. 

Although  it  was  stated  by  him  that  the  Survey  has  never  changed 
an  estimated  reserve  of  2,800  tons  of  high-grade  ore  in  the  Butte 
district,  he  admitted  to  Mr.  Hewett  that  he  had  never  read  the  fol- 
lowing footnote  to  the  table  where  this  figure  appears :  "  All  recorded 
deposits  of  oxide  ores  examined;  estimate  does  not  include  large 
deposits  of  carbonate  ore,  35  to  38  per  cent  manganese."  Mr.  Potts 
further  stated  that  he  had  not  read  the  original  report  from  which 
the  Butte  estimates  are  taken  and  in  which  it  is  stated :  "  The  known 
workable  bodies  of  this  ore  (carbonate)  aggregate  several  thousand 
tons  and  there  is  reason  to  expect  that  further  developments  will 
disclose  large  additional  amounts."  A  more  recent  report  contains 
this  statement :  "  The  quantity  of  rhodochrosite  ore  reported  as  actu- 
ally developed  early  in  November,  1918,  was  more  than  125,000  tons. 
To  this  reserve  should  be  added  an  unknown  and  presumably  very 
large  amount  in  prospect.  In  addition,  the  lodes  contain  an  almost 
unlimited  quantity  of  low-grade  material  consisting  of  the  carbonate 
and  silicate  of  manganese  and  quartz  mixed  in  different  proportions. 
This  constitutes  a  reserve  from  which,  if  the  necessity  arose,  the 
country's  needs  might  be  largely  supplied." 

Although  a  definite  estimate  has  not  been  assigned  to  the  reserves 
of  carbonate  ore  in  the  Butte  district,  the  knowledge  concerning 
these  bodies  has  been  taken  into  consideration  in  summary  state- 
ments concerning  the  prospective  production  from  domestic  'sources. 
Great  dependence  has  never  been  placed  by  the  Survey  on  a  large 
part  of  the  reserves  of  the  district,  even  at  the  prices  prevailing  dur- 
ing the  war,  because  it  has  no  record  that  any  qualified  engineer  or 
geologist  has  stated  that  the  bodies  could  be  explored  profitably  for 
manganese  ore  alone.  The  entire  production  of  carbonate  ore  from 
the  Butte  district  to  date  has  come  from  mines  which  have  been 
thoroughly  explored,  in  advance,  to  extract  bodies  of  copper  and  zinc 
ore.  No  charges  for  development  of  the  bodies  have,  therefore,  had 
to  be  borne  by  the  production  of  manganese  ore. 

Mr.  Smith  goes  on  to  note  that  Mr.  Potts  refers  several  times 
(pp.  1677  and  1692)  to  two  mines  in  the  Batesville  district  hav- 
ing produced  more  ore  than  the  reserves  assigned  by  the  Survey 
geologist  to  them.  The  only  explanation  that  can  be  offered  at  pres- 
ent is  that  the  estimate  for  these  particular  mines  was  low.  Such  a 
discrepancy  does  not  necessarily  indicate,  however,  that  the  total  es- 
timate for  the  district  was  low. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  163 

4.  Mr.  Potts  makes  statements   (pp.  1678  and  1684)   tending  to 
show  that  recent  reports  of  the  Survey  concerning  mineral  produc- 
tion and  reserves  of  manganese  ore  are  old  and  out  of  date.    To  sub- 
stantiate that  claim  he  cites  the  World  Atlas  of  Commercial  Geology, 
published  in  1921,  and  states  that  "  the  data  upon  which  this  report 
is  based  were  compiled  from  information  available  in  1913."     Not 
only  does  this  publication,  the  first  of  its  kind,  contain  practically 
complete   information    concerning  mineral   production   throughout 
the  entire  world  for  the  year  1918,  not  available  until  late  in  1919, 
but  Mr.  Potts  admitted  to  Mr.  Hewett  that  he  had  never  read  the 
text  on  manganese  in  this  report,  nor  a  table  in  it,  but  made  the  state- 
ment on  the  basis  of  a  reply  to  a  question  of  his  by  one  of  the  clerks 
of  the  Survey.    In  the  discussion  of  world  production  of  minerals, 
the  year  1913  was  considered  representative  because  it  was  the  last 
normal  year. 

5.  Mr.    Potts    states    (p.    1690) :  "Apparently    the    Government 
geologists  have  approached  investigation  of  domestic  reserves  with 
pessimism." 

There  is  abundant  record  in  the  form  of  summary  reports  to  the 
Council  of  National  Defense,  the  War  Industries  Board,  and  the 
Shipping  Board  during  1917  and  1918,  as  well  as  the  testimony  of 
many  producers  of  manganese  ore,  that  the  attitude  of  the  geologists 
was  quite  the  reverse  and  that  they  were  constantly  insisting  upon 
provision  for  the  use  of  the  steadily  rising  production  and  upon  a 
dependence  upon  domestic  reserves. 

6.  Mr.  Potts's  brief  states   (p.  1691):  "It  has  also  been  proved 
that  the  estimate  of  the  period  of  time  which  these  reserves  would 
last  this  country  is  based  only  upon  an  estimate  of  high-grade  ore 
which  is  belittled,  and  that  that  estimate  does  not  take  into  consid- 
eration lower-grade  manganese  ores  or  the  manganese  ore  associated 
with  iron  ore;  nor  does  it  take  into  consideration  the  metallurgical 
adaptability  of  all  our  ores  in  steel  making."    This  statement  is  made 
in  spite  of  ^the  following  paragraph,  taken  from  one  of  the  reports 
to  which  he  refers  several  times:  "The  widespread  utilization  of 
low-grade  in  place  of  high-grade  material  undoubtedly  presents  im- 
posing metallurgical  problems.    To  the  optimistic  observer,  incom- 
petent to  consider  these  problems  in  detail,  the  progress  made  to 
this  end  in  1917  and  1918  offers  considerable  encouragement.    The 
large  reserves  of  the  low-grade  material  can  probably  be  depended 
upon  under  stress  to  double  the  probable  life  of  the  high-grade  ore." 

A  careful  examination  of  Mr.  Potts's  testimony  and  brief  to  the 
Senate  Finance  Committee,  in  the  light  of  the  foregoing  statements, 
leads  Mr.  Smith  to  conclude  that  their  author  is  more  concerned  with 
discrediting  the  Survey  as  a  source  of  accurate  and  prompt  informa- 
tion than  he  is  in  supplying  evidence  for  the  case  which  he  presents. 
This  attitude  might  lie  pardoned  if  there  were  not  abundant  evidence 
from  his  brief  that,  in  order  to  strengthen  his  argument,  he  uses 
short-cut  and  questionable  methods  to  reach  his  own  estimate,  quotes 
partial  statements  which  convey  a  meaning  different  from  the  origi- 
nal text,  and  fails  to  understand  some  of  the  critical  data  used  by  him. 
Mr.  Smith  comments  hereon  as  follows : 

(1)  At  the  time  of  his  appearance  before  the  Senate  committee, 
August  26,  1921,  Mr.  Potts  stated  (p.  1693)  :  "  From  the  data 


164 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 


already   accumulated  the  evidence  points  to  a  reserve  tonnage  of 
domestic  manganese  ore  as  follows : 

Tons. 

High-grade  manganese,  35  per  cent  and  over 10,000,000 

Ferruginous  manganese,  10  to  35  per  cent 20,000,000 

Manganiferous  iron  ore,  5  to  10  per  cent  manganese 45,  000,  000 

Also   (p.  1694)  :  Up-to-date  investigations  prove  that  the  reserves 
of  high-grade  manganese  ore  are  approximately  10,000,000  tons." 

In  order  to  justify  his  estimate  of  10,000,000  tons  of  high-grade 
ore,  Mr.  Potts,  in  conference  with  Mr.  Hewett,  stated  that  it  was 
obtained  by  multiplying  the  total  reserves,  as  published  by  the 'Sur- 
vey, by  a  factor  considered  by  him  to  be  dependable  from  his  recent 
data  applying  to  a  few  districts.  He  further  admitted  that  he  had 
no  data,  other  than  those  of  the  Survey,  concerning  several  of  the 
most  productive  districts. 

(2)  Concerning  the  estimates  of  reserves  of  domestic  high-grade 
manganese  ore,  Mr.  Potts  quotes  (p.  1687)  this  statement  of  Messrs. 
Harder  and  Hewett :  "  The  estimates  represent  little  more  than  the 
order  of  magnitude  of  minimum  recoverable  quantities,"  thus  sug- 
gesting that  they  apply  to  the  whole  country.    In  the  original  context 
the  statement  applies  only  to  the  estimates  of  reserves  in  Virginia, 
Georgia,  and  Tennessee. 

(3)  In  calling  attention  to  the  small  estimate,  2,800  tons,  of  high- 
grade  manganese  ore   in  the  Butte   district    (p.    1690)    Mr.   Potts 
quotes  from  a  letter  of  Albert  J.  Seligman  to  the  effect  that  71,000 
tons  of  manganese  ore  were  produced  by  his  company  in  1918  and 
63,000  tons  in  1920.     Mr.  Potts  admitted,  in  conference  with  Mr. 
Hewett,  his  ignorance  of  the  fact  that  these  quantities  represent  not 
high-grade  manganese  ore  but  low-grade  oxide  ore  which  had  to  be 
milled  to  yield  a  shipping  concentrate.     This  material  was  part  of 
the  estimated  400,000  tons  of  low-grade  material  figured  by  Mr. 
Pardee  and  appearing  in  the  table  of  reserves. 

Estimates  of  domestic  manganese  ore  cla-ssified  according  to  character  of  work 

done. 


Number 
deposits 
examined 
1916-1918. 

Manganese,  35  per 
cent. 

Manganese  5  to  35 
per  cent,  largely 
more  than  20  per 
cent    SiOj,    less 
than  30  per  cent 
Fe. 

Manganese  5  to  35 
per  cent,  largely 
more  than  30  per 
cent  Fe,  less  than 
20  per  cent  SiOi. 

Reserves. 

Addi- 
tional re- 
serves in 
prospect. 

Reserves. 

Addi- 
tional re- 
serves in 
prospect. 

Reserves. 

Addi- 
tional re- 
serves in 
prospect. 

(a-l)  Detailed  work:  Estimates 
highly  dependable  
(a-2)  Detailed  work:   Deposits 
such  that,  further  work 
may  warrant  revision  .  .  . 
(fr-1)  Reconnaissance  work:  Es- 
timates highly  dcpend- 
aMe;little  or  no  explora- 
tion since  examinations. 
(b-2)  Reconnaissance  work:  De- 
posits such  that  further 
work  may  warrant  re- 

40 
548 

211 

2% 
25 

Tons. 
178,000 

387,000 
89,750 
50,000 

Tons. 
350,000 

280,000 
(?) 
(?) 

Tons. 
116,450 

235,000 
507,350 
460,200 

Tons. 
230,000 

250,000 
(?) 

(?) 

Tom. 

5,000 

15,000 
3,800 

2,  .508,  000 
13,628 

Tons. 

100,000 

2,050,000 

(?) 

(C)  Not  examined  by  Survey  

DIGEST   OF   TARIFF   HEARINGS,  H.   R.   7456. 


165 


In  a  statement  supplementary  to  the  one  above  given  Mr.  Smith 
takes  occasion  to  correct  any  possible  misunderstanding  that  might 
arise  with  reference  to  the  deposits  of  ore  in  the  Emma  mine  at  Butte, 
Mont.  Figures  of  ore  shipments  for  1918  are  already  on  record  with 
the  Geological  Survey,  having  been  confidentially  reported  in  1919 
by  the  Anaconda  Copper  Mining  Co. 

Mr.  Smith  goes  on  to  observe  that  there  is  no  question  about  the 
large  deposits  of  manganese  carbonate  ore  in  the  Butte  district; 
their  importance  was  recognized  by  the  Survey  in  1917.  At  that 
time  no  tonnage  estimate  was  regarded  as  possible,  but  the  high 
quality  of  these  ores  was  stated  in  the  'Survey  report  on  "Manga- 
nese at  Butte,  Mont.,"  published  in  April,  1918.  Issued  later  in  the 
same  year  the  Survey's  table  of  manganese  ore  reserves  in  the  United 
States  specifically  states  that  the  estimate  of  tonnage  given  "  does 
not  include  large  deposits  of  carbonate  ore,  35  to  38  per  cent  of 
manganese."  What  seems  to  be  an  error  in  a  paragraph  of  Mr. 
Smith's  testimony  in  the  hearings  is  in  the  mention  of  the  concentra- 
tion of  low-grade  oxide  ore,  concentrated  low-grade  oxide  ore  being 
there  confused  with  the  shipments  of  high-grade  manganese  car- 
bonate ore  from  the  Emma  mine.  In  the  concluding  paragraph  of  a 
letter  addressed  by  Mr.  Smith  to  Doctor  Page,  then  chairman  of  the 
United  States  Tariff  Commission,  the  essential  fact  was  brought  out 
that  the  large  shipments  from  the  Emma  mine  in  1918  and  1920  were 
of  a  notably  different  character  from  the  2,800  tons  of  high-grade 
oxide  ore  estimated  by  the  Geological  Survey. 

PARAGRAPH    302. TUNGSTEN    ORE. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Nelson  Franklin,  representing  tungsten-ore  producers ;  address,  Denver, 
Colo. 

Hearings:  Pages  1696-1706. 

Costs  and  selling  prices. — Domestic  costs  averaged  $13  per  unit  of 
20  pounds  as  against  foreign  costs  ranging  from  $1.25  to  $4.  As 
given  in  previous  testimony  before  the  Senate  Finance  Committee 
(pp.  36-40  and  51-55),  the  operating  costs  of  three  of  the  largest 
and  best  equipped  mines  in  this  country  were : 


Class  of  mining. 

Cost  per 
ton  of 
ore. 

Cost  per 
unit 
W03. 

Per  cent 
W03 
in  ore. 

Name  of  mine. 

Quarry 

Tunnel 
Shaft,  h 

low    rade 

$3.77 
12.80 
21.16 

112.83 
12.89 
i  11.13 

0.294 
1 
2.5 

Tungsten  Mines  Co. 
Pacific  Tungsten  Co. 
Atolia  Mining  Co. 

medium-grade  lode  
igh-grade  vein  

i  Atolia  unit  cost,  1918,  $8.91,  but  grade  of  ore  25  per  cent  less  than  1918.    Cost  of  mined  ore  same;  cost 
per  unit  increased. 

Chinese  costs  in  1919,  according  to  the  statement  of  a  large  importer 
(presented  in  detail),  were  $5.96  per  unit  of  20  pounds  c.  i.  f.  Pacific 
ports.  Of  this  total,  only  $1.84  represented  mining  cost,  the  re- 
mainder being  made  up  of  local  transportation,  $0.90;  local  taxes, 
;  and  ocean  freight  and  packing,  $0.34.  (Exchange  at  Hong- 
77134—22 12 


166  DIGEST  OF  TARIFF   HEARINGS,   H.  R.   1456. 

kong,  $1=$0.80).  A  small  amount  of  Bolivian  output  can  compete 
with  Chinese  on  a  price  basis. 

Size  of  industry. — In  1917  domestic  production  (6,144  tons)  plus 
imports  (4.878  tons)  amounted  to  11,022  tons.  Deducting  2,500  tons 
exported,  the  indicated  consumption  for  that  war  year  was  8,522 
tons.  Peace-time  consumption  will  doubtless  be  less,  ranging  between 
the  United  States  Geological  Survey  estimate  of  5,000  tons  and  the 
estimate  of  7,500  tons  by  the  steel  makers.  The  witness's  estimate  is 
6,000  tons  annually,  as  being  the  more  nearly  correct  normal  require- 
ment. The  two  new  mills  in  Nevada  should  produce  1,800  tons  a 
year,  and  an  uncompleted  mill  in  that  State  and  another  in  Arizona 
should  furnish  another  1.200  tons  annually.  These  new  mills  in  the 
Southwest  should  materially  alter  the  1918  situation  reported  by  the 
Tariff  Commission.  In  the  future  only  about  30  per  cent  of  the  out- 
put would  come  from  Colorado  and  at  least  55  per  cent  would  come 
from  producers,  exclusive  of  the  Atolia  Co.  (which  probably  will 
henceforth  furnish  less  than  15  per  cent  of  the  domestic  output),  in 
the  States  of  California,  Nevada,  and  Arizona.  Altogether,  there  are 
25  large,  finely  equipped  mills  in  the  four  States  mentioned,  able  to 
take  care  of  the  production  from  a  large  number  of  mines.  These 
mines  and  mills  are  distinct  in  ownership,  with  no  overlapping  inter- 
ests, and  any  suggestion  of  monopoly  in  any  branch  of  the  tungsten 
industry  is  absurd.  There  are  27  refiners  of  tungsten  ores  and  32 
makers  of  high-speed  steel,  according  to  a  tabulation  of  the  United 
States  Geological  Survey. 

Kates  suggested. — Increase  the  duty  tp  57  cents  per  pound  of  me- 
tallic tungsten,  which  equals  $9  per  'unit  of  20  pounds  of  tungsten 
trioxide  contained  in  ore. 

SPECIAL  STEELS. 

PARAGRAPHS   302,   304,   305,  307,   308,   315,  AND   319. — TOOL  STEEL. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  John  A.  Matthews,  representing  the  Crucible  Steel  Co.  of  America  and 
about  25  other  makers  of  crucible,  tool  steel ;  address,  New  York  City. 

FAVORING  LOWER  DUTIES  : 

American  importers  of  fine  steels.     (Brief.) 

B.  M.  Jones  &  Co.  (Inc.),  importers,  New  York  City.     (Brief.) 

Hearings :  Pages  1706-1710. 

Witness:  Mr.  John  A.  Matthews. 

Costs  and  selling  prices. — No  definite  statements  regarding  entire 
cost  of  production.  The  capital  invested  in  a  crucible-steel  plant, 
per  ton  of  product,  is  from  five  to  six  times  as  great  as  required  for 
mills  making  merchant  bars,  structural  steel,  etc.  The  investment 
per  ton  in  the  former  is  customarily  from  $300  to  $400,  while  in  the 
latter  it  may  vary  from  $32.50  to  $75.  The  product  of  a  tool-steel 
mill  averages  about  1  ton  per  man  per  month,  while  in  the  manu- 
facture of  tonnage  steel  it  is  from  15  to  30  tons.  The  labor  cost 
involved  in  the  manufacture  of  crucible  steel  is  also  greater  than  in 
the  case  of  tonnage  steel.  It  is  because  of  this  factor  that  imports  of 
crucible  and  other  high-grade  steel  tend  to  increase  and  exports  to 


DIGEST   OF   TAE1FF    HEARINGS,   H.   R.    7456.  167 

decrease.  In  the  case  of  some  high-priced  steels  the  proportion  of 
labor  cost  to  total  cost  is  as  high  as  85  or  90  per  cent. 

Size  of  industiy. — The  capital  invested  in  the  crucible  tool-steel 
industry  in  the  United  States  amounts  to  probably  $250,000,000,  and 
the  number  of  men  employed  from  30,000  to  40,000.  During  the  past 
12  months  the  employees  of  this  industry  have  not  had  25  per  cent 
employment.  There  are  about  30  mills  engaged  in  this  manufacture, 
and  there  are  from  40  to  50  importers  of  grades  which  compete  di- 
rectly with  them.  While  the  production  of  open-hearth  steel  in  the 
second  decade  of  this  century,  as  compared  with^that  in  the  last  dec- 
ade of  the  last  century,  was'tripled,  the  production  of  crucible  steel 
was  increased  by  only  7  per  cent. 

The  crucible  or  fine  steel  industry  is  a  handicraft  industry.  It  rep- 
resents in  tonnage  only  about  one-half  of  I  per  cent  of  the  total  steel 
production  of  the  country  but  from  2  to  2£  per  cent  of  the  value  of 
the  total  steel  business. 

Comparability. — The  witness  denies  the  statement  that  American 
mining  steel  is  inferior  to  Swedish  and  affii*ms  that  this  country  is 
able  to  make  anything  made  abroad  and  possesses  double  the  requisite 
capacity. 

Rates  suggested. — In  paragraph  302  manganese  ores  and  tungsten 
ores  should  be  kept  on  the  free  list,  as  the  country  is  dependent  upon 
the  foreign  product.  The  duty  on  molybdenum  ore  should  not  be 
over  $10  per  ton.  The  rates  on  the  ferro-alloys  made  from  the  gres 
mentioned  should  also  be  very  materially  reduced.  In  paragraph 
304  there  is  a  fundamental  defect  in  the  classification  of  steel  prod- 
ucts. In  the  case  of  tonnage  steels,  the  manufacture  of  which  is  well 
established  in  the  United  States,  the  rates  of  duty  on  'an  ad  valorem 
basis  are  higher  than  on  crucible  or  finely  finished  steels.  Thus,  an 
examination  of  this  paragraph  shows  that  steel  valued  at  H  cents 
per  pound  is  protected  to  the  extent  of  33^  per  cent,  while  steel  valued 
at  just  under  40  cents  per  pound  is  given  a  15  cent  protection,  and 
all  steels  valued  at  over  40  cents  per  pound  are  allowed  20  per  cent 
protection.  This  defect  in  the  rates  in  paragraph  304  could  be  in  large 
measure  corrected  if  in  line  5  of  paragraph  305  the  words  "  carbon 
or  "  were  inserted  before  the  word  "  nickel."  Line  5  wrould  then  read, 
"  containing  more  than  six-tenths  of  1  per  cent  of  carbon,  or  nickel," 
etc.  It  so  happens  that  nearly  all  crucible  or  fine  steels  are  high- 
carbon  products  running  well  over  six-tenths  of  1  per  cent,  while 
the  large-tonnage  industry  is  largely  made  up  of  steels  containing  con- 
siderably less.  It  was  further  suggested  that  the  last  portion  of  para- 
graph 305  should  be  so  amended  that  the  additional  cumulative  duty 
on  molybdenum  and  tungsten  steels  should  apply  to  the  entire 
molybdenum  and  tungsten  contents. 

If  the  duties  on  the  ferro-alloys  and  the  ores  of  the  ferro-alloys 
should  be  reduced  the  rates  on  alloy  steels  in  paragraph  305  could  be 
correspondingly  lowered.  The  criticism  directed  toward  paragraph 
304  is  also  applicable  to  paragraphs  307  and  308 — that  is  to  say,  the 
higher  the  value  of  the  steel  the  lower  the  ad  valorem  rate  of  duty. 
This  defect,  however,  would  be  largely  remedied  if  the  proposed 
change  in  paragraph  305  should  be  adopted. 

Paragraphs  315  and  316  cover  satisfactorily  ordinary  commercial 
rod  wire  and  coiled  rolled  strip,  but  do  not  adequately  protect  the 


168  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

manufacturer  of  highly  finished  specialties,  such  as  polished  drill 
rod,  watch-parts  steel,  safety-razor  steel,  etc.  If  the  proposed  amend- 
ment to  paragraph  305  be  adopted,  this  defect  would  be  in  large 
measure  corrected. 

Remarks. — In  the  manufacture  of  crucible  and  highly  finished 
steel,  the  investment  and  labor  costs  are  much  larger  than  in  the  case 
of  ordinary  tonnage  steels.  The  basic  differences  in  the  value  of  the 
crucible  steel  industry,  as  compared  with  the  tonnage  steel  industry, 
have  never  received  adequate  consideration  in  the  tariff.  This  has 
resulted  in  a  very  large  proportion  of  all  steel  subjects  operating  to 
the  detriment  of  the  smaller  industry,  while  imports  of  tonnage  steel 
have  been  almost  negligible  in  relation  to  the  vast  production.  The 
gradation  of  duties,  according  to  Mr.  Matthews,  should  take  into  con- 
sideration this  fundamental  fact.  Like  many  other  steel  producers, 
he  protests  against  the  high  rates  imposed  in  paragraph  302  on  the 
ferro-alloys  and  ores  of  the  ferro-alloys. 

Witness:  American  importers  of  fine  steels.  (Brief;  no  appear- 
ance at  hearings.) 

The  brief,  in  pamphlet  form,  is  in  rebuttal  of  certain  parts  of 
Doctor  Mathews's  testimony,  cited  above.  Explaining  the  statement 
that  the  manufacture  of  crucible  steel  in  this  country  has  increased 
only  7  per  cent  during  the  last  decade^  while  the  output  of  open- 
hearth  steel  tripled  during  the  same  period,  it  is  stated  that  the  real 
competitors  of  American  crucible  plants  are  the  electric  and  open- 
hearth  steel  departments  of  these  same  crucible  plants  and  not  for- 
eign producers.  The  argument  that  the  crucible  or  fine-steel  industry 
is  a  handicraft  industry  does  not  apply  to  the  majority  of  products 
made  in  electric  or  open-hearth  furnaces.  The  importers  believe  that 
the  total  production  of  genuine  crucible  steel  by  American  makers 
of  tool  steels  is  less  than  8  per  cent  of  their  total  output.  The  alle- 
gations contrasting  the  high  investment  per  ton  of  product  and  the 
low  output  per  man  employed  probably  refer  on.lv  to  the  actual 
weight  of  crucible  steel  produced  and  doubtless  take  into  account 
the  large  amount  of  finishing  work  applied  to  such  products  as  needle 
wire,  razor  steel,  hairsprings,  etc.  This  low  average  production, 
therefore,  does  not  represent  actual  steel  making,  but  includes  highly 
specialized  finishing  work  on  articles  classified  under  separate  para- 
graphs of  the  tariff  bill. 

The  claim  that  "  the  basic  differences  in  the  nature  of  the  crucible- 
steel  industry  as  compared  with  the  tonnage-steel  industry  have  never 
been  given  adequate  consideration  in  the  drafting  of  tarfff  bills,  with 
the  result  that  a  very  large  proportion  of  all  the  imports  of  steel 
are  made  to  the  detriment  of  this  relatively  small  industry,"  is  not 
supported  by  facts.  It  is  erroneous  to  claim  that  an  importation  of 
less  than  2  per  cent  of  actual  domestic  production  is  a  detriment  to 
the  crucible  or  fine  steel  industry.  Such  steels  are  imported  solely 
to  meet  the  demand  of  American  manufacturers  for  quality,  and 
imported  fine  steels  are  sold  at  equal  or  higher  prices  than  equivalent 
American  grades.  The  importers  of  fine  steels  are  practically  all 
American  business  men  with  large  capital  investment.  While  they 
do  not  actually  employ  labor  in  steel  making  they  do  employ  large 
staffs  of  salesmen,  office  and  warehouse  labor,  carry  stocks  valued 


DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456.  169 

in  hundreds  of  thousands  of  dollars,  and  pay  income  tax,  duty,  per- 
sonal property  taxes,  etc. 

Attention  is  directed  toward  the  possibility  of  reducing  the  pro- 
posed duties  on  ores  and  ferro-alloys,  in  which  case  proportionately 
lower  rates  of  duty  should  be  placed  upon  imported  steels.  Touch- 
ing the  compensatory  duty  on  tungsten,  the  importers  are  unable  to 
assume  that  the  price  of  tungsten  will  increase  from  40  cents  per 
pound  to  $1.12  per  pound,  as  a  result  of  the  72  cents  duty.  The  duty 
will  be  only  a  contributing  factor  and  the  price  will  be  adjusted  by 
competition  with  other  American  mines.  American  manufacturers 
of  ferro-alloys  will  take  into  account  the  probability  that  there  are 
10,000  tons  of  tungsten  in  warehouse  in  this  country,  and  that  a  de- 
mand for  the  importation  of  tungsten  ore  or  metal  is  not  likely  to 
arise  for  three  or  four  years. 

The  contention  that  paragraph  304  does  not  give  reasonable  pro- 
tection to  certain  steel  products,  such  as  needle  wire,  safety-razor 
blade  steel,  hairspring  wire,  etc.,  is  misleading;  this  paragraph  ap- 
plies to  regular  steel  products  in  the  form  of  bars,  forgings,  etc., 
while  the  articles  mentioned  are  covered  in  other  paragraphs,  as  for 
example  paragraphs  315  and  316. 

Objection  is  made  to  Doctor  Mathews's  request  that  steels  contain- 
ing more  than  six-tenths  of  1  per  cent  of  carbon  be  included  with 
alloy  steels  at  a  higher  rate  of  duty  under  paragraph  305.  To  fix 
arbitrarily  a  six-tenths  per  cent  carbon  content  is  absolutely  unten- 
able, as  a  high-carbon  steel  does  not  require  appreciably  more  labor 
to  create  than  a  low-carbon  steel.  The  purpose  of  such  inclusion 
clearly  indicates  the  desire  to  exclude  importations  of  fine  steel, 
thereby  setting  up  a  monopoly.  Imported  fine  steels  should  not  be 
excluded  from  the  American  market,  as  this  would  deprive  domes- 
tic consumers  of  the  opportunity  to  obtain  quality  steels. 

Many  of  these  statements  are  enlarged  upon  in  supporting  letters 
from  individual  members  of  the  importers'  organization,  including 
William  Jessop  &  Sons  (Inc.),  H.  Boker  &  Co.  (Inc.),  the  Arthur 
Balfour  Steel  Co.  (Inc.).  Kobert  K.  Greaves  &  Co.,  Hobson,  Hough- 
ton  &  Co.  (Ltd.),  and  Newman-Andrew  Co.  Mr.  J.  B.  Smiley,  secre- 
tary of  the  association,  in  a  separate  letter  dated  December  13,  1921. 
makes  the  further  suggestion,  in  regard  to  the  claim  that  paragraph 
305  does  not  take  into  consideration  conversion  loss,  that  these  should 
be  viewed  in  the  light  of  the  fact  that  foreign  steel  makers  expe- 
rience the  same  conversion  loss  from  the  ore  to  the  finished  steel — a 
loss  naturally  reflected  in  the  selling  price  or  value  of  the  imported 
steel  and  hence  in  the  duty  paid  thereon.  Summarizing  the  import 
situation,  it  is  claimed  (1)  that  the  importation  of  tool  steels  repre- 
sents an  extremely  small  percentage  of  the  tool  steel  produced  and 
sold  in  this  country:  (2)  that  imported  steels  are  not  sold  at  less 
than  American  market  prices:  and  (3)  that  imported  fine  steels  are 
used  by  the  American  consumer  only  because  of  their  superior 
quality. 

Rates  suggested. — The  importers  ask  the  retention  of  the  present 
Underwood  rates  (on  foreign  invoice  valuation)  on  the  ground  that 
they  have  proved  adequate  and  fully  protect  the  American  industry. 
In  no  case  should  a  special  paragraph,  such  as  305,  be  created  for 


170  DIGEST   OF  TARIFF   HEARINGS,  H.   R.   7456. 

alloy  steel,  but  if  this  is  retained  these  steels  should  be  exempted 
from  paragraph  304  and  the  rate  should  not  be  more  than  2^  per 
cent  in  excess  of  that  on  straight  carbon  steel.  The  preference  given 
in  the  Underwood  bill  to  open-hearth  and  Bessemer  steel  as  com- 
pared with  crucible  and  electric  steel  should  be  retained.  If  some 
form  of  American  valuation  is  adopted,  the  importers  ask  that 
valuation  be  made  by  comparison  with  the  domestic  cost  of  manu- 
facturing on  the  mill  floor,  exclusive  of  selling  expense,  or  with  com- 
parable products  made  by  similar  processes.  On  the  basis  of  such 
American  valuation,  the  importers  request  under  paragraph  304  a 
straight  ad  valorem  duty  of  10  per  cent  on  all  crucible  steels,  this  to 
cover  steels  made  by  the  Bessemer,  Siemens-Martin,  or  open-hearth 
processes. 

A  proviso  is  called  for,  admitting  such  steels  valued  at  not  over 
4  cents  per  pound  at  a  specific  rate  of  three-tenths  of  1  cent  per 
pound  and  those  valued  at  over  4  cents  per  pound  at  six-tenths  of  a 
cent  per  pound ;  no  duty  to  be  higher  than  10  per  cent. 

The  elimination  of  the  additional  15  per  cent  duty  from  paragraph 
305  is  suggested,  but  failing  this  a  reduction  to  12£  per  cent  and 
waiving  the  duties  contemplated  by  paragraph  304  on  application 
of  paragraph  305. 

The  additional  cumulative  duty  on  molybdenum  and  tungsten 
should  be  cut  in  half  and  "  chromium  "  should  be  eliminated ;  chrome 
content  should  be  classified  with  silicon  and  manganese,  since  chro- 
mium in  combination  with  carbon  steels  to  the  extent  of  1  to  1|  per 
cent  is  used  only  to  intensify  and  deepen  the  hardening  property  of 
the  carbon  and  does  not  give  special  qualities  as  in  the  use  of  larger 
percentages  of  nickel,  tungsten,  etc.  The  permitted  contents  of  sili- 
con, chrome,  or  manganese  should  therefore  all  be  increased  to  H  per 
cent  and  be  confined  to  open-hearth,  Bessemer,  and  electric  steels. 

A  straight  ad  valorem  duty  of  10  per  cent  is  asked  on  all  articles 
specified  in  paragraphs  307,  308,  and  316. 

In  paragraph  1441  music  wire  should  be  eliminated  as.  belonging 
to  paragraph  316.  It  is  a  plain  steel  wire,  requiring  no  more  labor 
in  manufacturing  than  spring  wire  under  paragraph  316.  The  tech- 
nical term  "  music  wire  "  is  misleading,  as  more  than  95  per  cent  of 
such  wire  is  sold  for  mechanical  springs  and  not  for  pianos  or 
musical  instruments. 

Witness:  B.  M.  Jones  &  Co.  (Inc.),  importers,  New  York  City. 
(Brief;  no  appearance  at  hearings.) 

A  leaflet  accompanying  letter  of  August  11,  1921,  gives  a  calcula- 
tion showing  that  the  duty  on  high-speed  steel  under  H.  K.  7456 
would  amount  to  47|  cents  per  pound  as  compared  with  approxi- 
mately 11  cents  under  the  Underwood  tariff.  It  is  stated  that  imports 
of  high-speed  steels  are  approximately  3  per  cent  of  the  total  amount 
of  such  steel  used  in  the  United  States  and  that  they  have  yielded 
the  Government  an  annual  revenue  of  about  $150,000.  It  is  sub- 
mitted that  an  importation  amounting  to  only  3  per  cent  of  the 
domestic  consumption  is  not  a  menace  to  any  industry,  and  that  the 
proposed  rates,  by  absolutely  excluding  foreign  competition,  might 
increase  the  cost  of  high-speed  steel  to  American  consumers  by 
$10.000,000  per  annum. 


DIGEST   OF   TARIFF   HEARINGS,  H.   R.   7456.  171 

PARAGRAPH    304. HOLLOW    MINING    DRILL    STEEL. 

WITNESS,    AND    INTEREST    REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  C.  F.  Schwep,  representing  the  Ingersoll-Rand  Co. 

Hearings :  Pages  1760-1761. 

Comparability. — It  may  be  said  that  the  old  type  of  percussion 
drilling  differs  widely  in  principle  from  the  hammer  drill.  The 
hammer  drill  uses  a  hollow  steel  and,  instead  of  lifting  the  steel  in 
the  chuck  up  and  down,  the  drill  is  tapped  on  the  end.  The  steel 
receives  blows  at  the  rate  of  2,000  per  minute  and  must  be  able  to 
withstand  the  shock  of  vibration.  It  has  been  found  that  there  is 
-something  inherent  in  the  Swedish  steel,  not  revealed  by  analysis, 
which  makes  that  particular  steel  very  much  better  adapted  for  that 
kind  of  work  than  American  steel.  Swedish  steel  is  the  only  imported 
product  which  enters  into  the  manufactures  of  the  company. 

Size  of  industry. — The  Ingersoll-Rand  Co.  has  six  plants  in  this 
country,  employing  about  6,000  men.  It  imports  about  2,000  tons 
of  hollow  mining  drill  steel  each  year  from  Sweden. 

Rates  suggested. — Retention  of  the  8  per  cent  duty  under  the  act 
of  1913,  instead  of  the  proposed  increases  under  the  Fordney  bill. 

PARAGRAPHS   304   AND   305. HIGH-SPEED   STEEL. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  Arthur  Balfour,  managing  director  Arthur  Balfour  &  Co.  (Ltd.),  Shef- 
field, England,  an  ex-president  of  the  Sheffield  Chamber  of  Commerce  and 
ex-master  cutler  of  Sheffield,  representing  a  deputation  from  Sheffield, 
England,  which  included  Sidney  J.  Robinson,  Peter  MacGregor,  and  J.  C. 
Ward.  Mr.  Balfour  represented  Arthur  Balfour  &  Co.  (Ltd.)  ;  Mr.  Rob- 
inson the  firm  of  Wm.  Jessop  &  Sons  (Ltd.)  ;  Mr.  MacGregor  the  firm 
of  Sanderson  Bros.  &  Newbould  (Ltd.)  ;  and  Mr.  Ward  the  firm  of  Edgar 
Allen  &  Co.  (Ltd.).  In  addition  to  these  Sheffield  companies,  the  deputa- 
tion represented  (Sir  W.  G.  Armstrong,  Whitworth  &  Co.  (Ltd.),  of  Man- 
chester, England. 

Hearings :  Pages  1752-1760. 

Costs  and  selling  prices. — The  witness  contended  that  the  labor  cost 
of  manufacturing  high-speed  steel  had  increased  very  greatly  in  re- 
cent times.  Since  1912  the  advance  in  wages  in  England  had 
amounted  to  400  per  cent.  Coupled  with  this  statement,  however,  was 
the  assertion  that  wages  at  present  in  England  were  coming  down 
quite  rapidly.  Ordinary  labor — that  is,  a  man  wheeling  a  barrow — 
gets  3  pounds  10  shillings  per  week.  The  witness  stated  that  the  cost 
of  living  in  England  is  about  100  per  cent  higher  than  it  was  in  1912. 

High-speed  steel  containing  18  per  cent  tungsten  sells  in  England 
at  3  shillings  9  pence  per  pound,  or  about  420  pounds  sterling  per 
long  ton.  (NOTE. — At  the  exchange  rate  of  $3.60  per  pound,  this 
price  is  equivalent  to  about  68  cents  per  pound  in  American  currency) . 

Size  of  industry.— In  1920  about  $250,000  worth  of  high-speed 
steel  was  imported  into  the  United  States. 

Rates  suggested. — It  was  suggested  that  the  duty  on  tungsten  con- 
tained in  steel  be  reduced,  in  paragraph  305,  from  72  cents  per  pound 


172  DIGEST   OF   TARIFF   HEARINGS,,   H.   R.    7456. 

to  35  cents  per  pound,  and  that  the  rate  in  paragraph  304  on  steel 
valued  above  40  cents  per  pound  be  reduced  from  20  per  cent  ad 
valorem  to  10  per  cent. 

Remarks. — Mr.  Balfour  stated  that  the  concerns  here  represented 
had  relations  with  American  business  men  for  a  number  of  years 
past  and  paid  local  taxes  in  the  United  States.  The  duties  on  tung- 
sten steel  contained  in  the  Fordney  bill  were,  in  his  opinion,  pro- 
hibitive. 

PARAGRAPHS  304  AND  305. STEEL,  ESPECIALLY  SWEDISH. 

WITNESSES,   AND   INTERESTS   REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  John  H.  Brewster,  representing  himself;  address,  56  West  Forty-fifth 

Street,  New  York  City. 
The  Minister  of  Sweden. 

Hearings :  Pages  1761-1764. 

Witness :  Mr.  John  H.  Brewster. 

Costs  and  selling  prices. — Comparative  increases  in  production 
costs  in  1920  as  compared  with  1914  are :  Cost  in  the  United  States, 
1.4  times;  in  Sweden,  3.5  times;  fuel  cost  in  the  United  States,  2 
times ;  in  Sweden,  3  times ;  labor  cost  in  the  United  States,  1.6  times ; 
in  Sweden,  2.5  times;  transportation  cost  in  the  United  States,  l.T 
times;  in  Sweden,  3  times.  In  1909  the  average  production  costs  of 
Swedish  steel  at  the  mills  were  less  than  3  cents  per  pound,  while  in 
1921  the  production  cost  of  the  same  steels  averages  more  than  5 
cents.  Swedish  open-hearth  and  Bessemer  costs  are  so  much  higher 
than  similar  American  costs  that  Swedish  steel  can  be  used  only  in 
limited  quantities  and  for  purposes  where  special  steels  are  desired ; 
an  increase  of  1  cent  per  pound  will  in  many  cases  make  the  price  of 
Swedish,  steel  prohibitive. 

Size  of  industry. — United  States  Customs  Reports  available  for  the 
years  1912-1916,  inclusive,  show  a  yearly  average  of  12,350  tons  of 
open-hearth  and  Bessemer  steels  imported  from  Sweden,  or  about 
one-third  of  1  per  cent  of  the  average  total  production  of  American 
mills  for  the  same  period.  The  money  value  of  American  purchases 
of  Swedish  steel  and  iron  is  less  tha'n  $5,000,000  a  year,  while  the 
annual  exports  of  American  steel  to  Sweden  average  more  than 
$100,000,000. 

Rates  suggested. — The  witness  contends  that  the  House  of  Repre- 
sentatives, by  adopting  in  paragraph  304  the  approximate  provisions 
of  the  Payne- Aldrich  Act,  overlooked  the  tariff  differential  established 
in  paragraph  110  of  the  act  of  1913  between  crucible  and  electric  steels 
on  the  one  hand  and  open-hearth  and  Bessemer  steels  on  the  other. 
This  distinction  should  be  maintained.  It  is  requested  that  the  fol- 
lowing provision  be  added  to  paragraph  304 :  "  Provided,  That  steel 
ingots,  copper  ingot's,  blooms,  slabs,  bars,  sheets,  plates,  and  steel  not 
specially  provided  for,  made  by  the  Bessemer,  Siemens-Martin,  open- 
hearth  or  similar  processes,  in  the  manufacture  of  which  wood  or 
charcoal  is  used,  all  the  foregoing  valued  at  not  over  4  cents  per 
pound,  shall  be  subject  to  a  duty  or  three-tenths  of  1  cent  per  pound ; 
valued  at  over  4  cents  per  pound,  six-tenths  of  1  cent  per  pound." 


DIGEST   OF   TAEIFF   HEARINGS,   H.   R.    7456.  173 

With  reference  to  paragraph  305,  chrome  should  be  removed  from 
its  classification  with  tungsten  and  molybdenum  and  placed  with 
manganese  and  silicon,  because  the  effect  of  a  small  percentage  of 
chrome  in  carbon  steel  is  to  intensify  the  hardening  quality  of  the 
carbon.  Under  modern  heat-treatment  practice  chrome  therefore 
occupies  a  place  similar  to  that  of  manganese  and  silicon  rather  than 
that  of  the  other,  alloys  mentioned  in  this  paragraph.  The  word 
"  chromium  "  should,  therefore,  be  eliminated  from  the  sixth  line  of 
paragraph  305  and  inserted  in  the  ninth  line,  making  the  provision 
read  as  follows :  "  Provided*  That  chromium,  manganese,  and  silicon 
shall  not  be  considered  as  alloying  material  unless  present  in  the  steel 
in  excess  of  \\  per  cent." 

From  1909  to  1913  great  progress  was  made  in  the  development  of 
electric  and  alloy  steels.  Under  the  act  of  1913  these  fine  steels  were 
given  greater  protection  than  Bessemer  and  open-hearth  steels,  the 
costs  of  the  latter  being  so  low  that  foreign  competition  was  neg- 
ligible. For  special  purposes,  however,  the  Swedish  steels  made  by 
the  Bessemer  and  open-hearth  processes  were  more  suitable  than 
American  steels,  and  were  used  largely  in  the  manufacture  of  pocket- 
knives  and  other  cutlery,  twist  drills,  taps,  carpenters'  chisels,  black- 
smiths' tools,  scythes,  ball  bearings,  and  other  finished  products.  This 
imported  open-hearth  Bessemer  steel  is  sold  at  very  close  prices  as 
semifinished  products  to  American  manufacturers  and  dealers,  but  at 
higher  prices  than  American  open-hearth  and  Bessemer  steel.  These 
Swedish  steels  are  used  where  special  quality  is  required,  but  if  the 
price  is  materially  increased  by  the  imposition  of  higher  duties,  the 
raw-material  cost  will  be  too  great  and  the  industry  will  consequently 
suffer. 

Witness :  The  Minister  of  Sweden,  in  an  authorized  communica- 
tion of  August  8.  1921,  transmitted  through  the  State  Department 
and  representing  the  views  of  the  Swedish  iron  and  steel  industry : 

ti'ize  of  industry. — Sweden  has  for  many  years  had  large  business 
dealings  both  in  the  purchase  of  raw  materials  and  of  products  made 
in  the  United  States;  in  recent  years  the  volume  of  Sweden's  pur- 
chases has  been  about  four  times  that  of  her  sales.  The  total  annual 
value  of  iron  and  steel  sold  by  Sweden  to  the  United  States  amounts 
to  less  than  $5.000.000,  and  such  iron  and  steel  has  been  so  sold  for 
50  years.  Sales  have  shown  no  recent  increases  and  are  due  solely 
to  the  superior  suitability  of  the  materials  for  certain  purposes.  It 
has  been  proved  that  when  the  tonnage  of  any  metal  imported  from 
Sweden  becomes  of  sufficient  importance,  as  for  example  in  the  case 
of  bicycle  and  other  seamless  tubing,  American  metallurgists  have 
developed  a  substitute.  The  margin  above  the  prices  asked  for 
American  metals,  that  the  Swedish  manufacturer  is  able  to  secure,  is 
closely  limited  by  the  extent  to  which  the  American  manufacturer 
feels  he  can  increase  the  cost  of  his  finished  product. 

Rates  suggested. — In  order  to  reconcile  paragraph  304  with  para- 
graphs 303  and  315  a  proper  differential  should  be  established  be- 
tween the  high-priced  electric,  crucible,  tool,  and  other  imported 
steels  and  the  lower-priced  open  hearth  and  Bessemer  steels  coming 
from  Sweden.  This  differential  is  recognized  in  paragraph  110  of 
the  act  of  1913.  The  following  provision  should,  therefore,  be 


174  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

added  to  paragraph  304  for  steel  ingots,  cogged  ingots,  blooms,  bil- 
lets, slabs,  bars,  sheets,  plates,  and  all  steel,  not  specially  provided  for, 
made  by  the  Bessemer.  Siemens-Martin,  open-hearth,  or  similar  proc- 
esses, in  the  manufacture  of  which  wood  or  charcoal  is  used  for  fuel : 

When  valued  at  not  over  4  cents  per  pound,  a  duty  of  three-tenths  of  1 
cent  per  pound ;  when  valued  at  over  4  cents  per  pound,  six-tenths  of  1  cent 
per  pound. 

In  paragraph  305  chromium  should  be  omitted  from  its  association 
with  tungsten  and  molybdenum  and  classified  with  silicon  and  man- 
ganese. Since  chromium  in  combination  with  carbon  steels  to  the 
extent  of  H  per  cent  is  used  only  to  intensify  and  deepen  the  har- 
dening property  of  carbon  and  is  never  considered  as  a  tool  or  special 
quality  steel,  the  permitted  contents  of  silicon,  chrome,  and  man- 
ganese should  be  increased  to  1|  per  cent  and  should  be  confined  to 
open-hearth  and  Bessemer  steels. 

Criticism  is  also  made  of  the  American  valuation  plan,  which, 
if  retained,  should  be  modified  as  regards  the  fifth  and  sixth  lines  of 
section  402  so  as  to  read,  "  of  exportation  of  the  imported  mer- 
chandise at  which  products  of  the  United  States  made  by  comparable 
and  competitive  processes  were,"  etc. 

PARAGRAPHS  304  AND  305 — HIGH-CARBON  CHROMIUM  STEEL. 


FAVORING  LOWER  DUTIES  : 

The  S.  K.  F.  Industries,  New  York  City.     (Brief;  no  appearance  at  hear- 
ings. ) 

Size  of  industry. — This  organization,  incorporated  in  the  State  of 
New  York,  supervises  a  number  of  factories,  representing  an  invest- 
ment of  $14,000,000.  producing  ball  bearings  and  steel  plates.  It  co- 
operates with  S.  K.  F.  organizations  throughout  the  world,  especially 
in  Sweden,  systematically  exchanging  technical  results  of  investiga- 
tions. An  expenditure  of  over  $250.000  has  been  made  in  the  erection 
and  equipment  of  a  laboratory  for  the  purpose  of  (1)  cooperating 
with  American  steel  manufacturers  in  improving  their  product,  and 
(2)  for  investigating  and  conducting  research  in  foreign-made  steels. 

Comparability. — Gratifying  results  have  been  obtained  in  raising 
the  standard  of  quality  of  American  ball-bearing  steel.  Except  for 
exceptionally  severe  conditions,  ball  bearings  of  American-made  steel 
satisfactorily  meet  all  requirements  and  for  several  years  past  it  has 
not  been  necessary  to  use  Swedish  steel  except  for  a  small  percentage 
of  the  demand.  This  small  percentage,  however,  has  been  necessary, 
enabling  the  organization  to  meet  the  requirements  of  heavier  and 
very  exacting  specifications  of  many  American  manufacturers.  In- 
vestigations have  proved  conclusively  that  ball  bearings  made  of 
the  best  grade  of  Swedish  ball-bearing  steel  can  successfully  sustain 
greater  load  and  speed  conditions  than  those  made  of  American  steel 
when  used  under  identical  conditions.  The  superiority  of  the  best 
Swedish  steel  is  believed  to  be  due  to  the  well-recognized  superior 
purity  of  Swedish  ore  and  the  methods  used  in  refining  it,  as  well 
as  in  the  making  of  the  steel  by  the  use  of  charcoal  and  wood — 
methods  not  employed  in  the  United  States. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  175 

Rates  suggested^ — Should  the  maintenance  of  the  present  tariff 
schedule  be  considered  inadvisable,  the  company  believes  that  the 
protection  provided  in  paragraph  304  is  considerably  in  excess  of  that 
required  to  protect  the  interests  of  American  steel  makers.  The  addi- 
tion of  the  extra  duty  in  paragraph  305  would  entirely  prohibit  the 
use  of  Swedish  steel.  In  case  paragraph  304  is  adopted,  the  com- 
pany urges  that  paragraph  305  be  changed  so  as  not  to  include  steel 
containing  not  more  than  1|  per  cent  chromium.  A  content  of  1^  per 
cent  chromium  means  less  change  in  the  different  qualities  of  the  steel 
than  an  addition  of  1  per  cent  manganese. 

PARAGRAPHS   304,  305,  AND  316. FINE  STEELS. 

.    '      WITNESS,  AND  INTERESTS  KEPRESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  John  B.  Smiley,  representing  American  importers  of  fine  steels ;   ad- 
dress, New  York  City. 

Hearings:  Pages  1764-1780. 

Costs  and  selling  prices. — Foreign  fine  steels  do  not  compete  on  a 
price  basis  with  the  American  industry,  but,  on  the  contrary,  com- 
mand higher  prices. 

Crucible  steels  are  sold  strictly  on  quality.  The  imported  material 
has  never  been  sold  on  price  and  does  not  compete  with  the  American 
product  except  on  a  quality  basis.  The  price  at  which  foreign  cruci- 
ble steel  is  sold  is  always  much  higher  than  the  market  price  of  the 
American  production  for  steels  of  similar  classification;  this  differ- 
ential varies  from  20  to  50  per  cent  at  the  present  time.  The  highest 
grades  of  crucible  carbon  tool  steel  are  not  produced  in  the  United 
States. 

The  open-hearth  and  Bessemer  steels  imported  into  the  United 
States  never  compete  in  price  with. domestic  steels  made  by  similar 
processes,  and  are  sold  in  this  country  only  on  account  of  their  high 
quality. 

The  additional  cost  in  the  manufacture  of  steels  containing  alloys 
does  not  increase  the  manufacturer's  cost  of  production  in  proportion 
to  the  additional  18  per  cent  ad  valorem  assessed  under  paragraph 
305.  The  prices  of  alloy  steels  at  Liverpool  are  already  higher  than 
the  American  selling  prices.  The  American  mills  are  not  handi- 
capped in  the  matter  of  selling  expenses  to  the  same  extent  as  are  the 
importers. 

The  American  mills  perfected  the  making  of  high-speed  steel, 
and  cheapened  its  production  to  such  an  extent  that  during  1920 
approximately  30,000,000  pounds  were  produced  in  the  United  States, 
and  only  about  3  per  cent  was  imported. 

Soft  cold-rolled  steel  for  stamping  and  drawing  purposes  is  so 
cheaply  produced  in  the  United  States  that  it  is  impossible  to  import 
it.  The  American  mills  produce  this  material  so  efficiently  and  in 
such  large  tonnage  that  it  sells  in  the  United  States  for  4|  cents  to 
6  cents  per  pound,  which  is  below  the  European  cost  of  production. 

Comparability. — "  There  is  no  question  but  what  fine  steel  is  made 
in  this  country,  but  for  particular  requirements,  either  due  to  the 
process  of  manufacture  or  the  raw  materials  employed,  it  has  been 


176  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

found  by  actual  experience  over  years  that  the  foreign  steel  gives  bet- 
ter life  and  is  more  what  we  want." 

Size  of  industry. — There  were  about  22  manufacturing  plants  in  the 
"  fine-steel "  business  in  America  prior  to  the  war.  There  are  now 
about  45.  The  Crucible  Steel  Co.  of  America  operates  about  10  of 
these  plants.  The  producing  capacity  for  American  fine  steel  is  be- 
tween three  and  four  tunes  what  it  was  before  the  war. 

There  is  produced  in  this  country,  in  ingot  capacity,  1,252,000  tons 
per  annum  or  an  equivalent  of  834,984  tons  per  annum  in  the  finished 
bar.  The  imports  of  fine  steels  do  not  exceed  20,000  to  25,000  tons  per 
annum,  and  this  quantity  is  constantly  decreasing.  This  is  true  under 
the  present  Underwood  tariff. 

Rates  suggested. — The  proposed  paragraph  304  overlooks  the  dif- 
ferential in  paragraph  110  of  the  Underwood  tariff,  which  provides 
for  different  rates  of  duty  for  steels  made  by  the  crucible,  electric, 
and  similar  processes  (15  per  cent  ad  valorem,  foreign  value) ,  and  the ' 
open-hearth  and  Bessemer  steels  (part  on  the  free  list  and  part  at  8 
per  cent  ad  valorem,  foreign  value) .  The  witness  maintains  that  this 
present  distinction  is  proper  and  should  be  continued,  as  the  imports 
of  crucible  and  electric  steels  and  steels  made  by  similar  processes  are 
principally  tool  steels,  whereas  the  imports  of  open-hearth  and  Bes- 
semer steels  are  principally  semifinished  raw  materials  used  by  Ameri- 
can manufacturers  as  such. 

In  paragraph  305  the  word  "  chromium  "  should  be  removed  from 
its  association  with  tungsten  and  molybdenum  and  classified  with 
silicon  and  manganese,  as  chromium  in  combination  with  carbon  steels 
to  the  extent  of  1  to  1£  per  cent  is  only  used  to  intensify  and  deepen 
the  hardening  property  of  the  carbon  content  and  is  never  considered 
as  a  tool  steel.  The  permitted  contents — silicon,  chrome,  or  manga- 
nese— should  be  increased  to  1^  per  cent  and  should  be  confined  to 
open-hearth  and  Bessemer  steels. 

Remarks. — A  brief  submitted  by  the  witness  (pp.  1766-1780)  in- 
cludes the  following : 

MODIFICATIONS  ASKED  FOR  IN  THE  PROPOSED  FORDNEY  TARIFF  MEASURE  (H.  R.  7456) 
UNDER  METAL  SCHEDULE  NO.  3,  BY  AMERICAN  IMPORTERS  OF  FINE  STEELS — JOHN  B. 
LINDLEY,  SECRETARY. 

Paragraph  304  :  Based  on  American  valuation  plan,  a  straight  ad  valorem  duty 
of  10  per  cent  on  all  crucible  steels.  In  Bessemer.  Siemens-Martin,  open- 
hearth,  or  similar  process,  the  following  to  be  added  to  paragraph  304 :  "  Pro- 
vided, That  steel  ingots,  cogged  ingots,  blooms,  billets,  slabs,  sheets,  plates,  and 
steel  not  specially  provided  for,  made  by  the  Bessemer,  Siemens-Martin,  open- 
hearth,  in  the  manufacture  of  which  wood  or  charcoal  is  used  as  fuel,  or  similar 
special  processes,  all  the  foregoing  valued  at  not  over  4  cents  per  pound  shall  be 
subject  to  a  duty  of  three-tenths  of  1  cent  per  pound ;  valued  over  4  cents  per 
pound,  six-tenths  of  1  cent  per  pound." 

Paragraph  305 :  Based  on  American  valuation  plan,  the  elimination  of  the  ad- 
ditional 15  per  cent  duty  on  alloy  steels ;  but  failing  in  this  its  reduction  to  12} 
per  cent  and  the  duties  contemplated  by  paragraph  304  in  application  to  para- 
graph 305  waived.  That  the  additional  cumulative  duties  on  molybdenum  and 
tungsten  content  should  be  reduced  from  the  proposed  $1.25  per  pound  on  mo- 
lybdenum content  to  62}  cents  per  pound  on  molybdenum  content  in  excess  of  1} 
per  cent,  and  the  proposed  72  cents  per  pound  on  the  tungsten  content  to  36  cents 
per  pound  on  the  tungsten  content  in  excess  of  1}  per  cent. 

Paragraph  316 :  Based  on  American  valuation  plan,  a  straight  ad  valorem  duty 
of  10  per  cent 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  177 

NOTE. — We  once  again  point  out  that  under  the  Underwood  tariff  the  American 
fine-steel  industry  has  prospered,  and  importations  have  decreased.  The  above 
proposition  covering  recommended  modifications  in  the  proposed  Fordney  tariff 
measure,  metal  schedule  No.  3,  if  accepted,  will  still  further  burden  the  im- 
portation of  fine  steels  by  imposing  higher  duties  than  now  obtain. 

Other  memoranda  submitted  included  the  argument  that,  if  the 
duties  in  the  proposed  Fordney  tariff  bill  remain  unchanged,  a  revenue 
to  the  Government,  estimated  at  approximately  $500,000  per  annum, 
will  be  cut  off,  as  the  duties  mentioned  would  absolutely  prohibit  at 
least  80  per  cent  of  the  present  imports.  The  small  quantity  of  fine 
steels  now  imported  into  this  country  (2  per  cent  of  the  total  con-* 
sumption  here)  can  not  be  considered  competitive,  as  the  imported 
fine  steels  do  not  undersell  similar  grades  of  American  steel  because 
the  imported  products  commanded  higher  prices  due  to  their  quality, 
therefore  it  can  not  be  claimed  that  the  American  industry  is  threat- 
ened ;  hence  the  proposed  increased  duty  will  only  result  in  the  crea- 
tion of  a  monopoly  which  will  have  the  American  purchaser  at  its 
mercy.  The  proposed  duty,  in  addition  to  causing  loss  of  revenue 
and  creating  a  monopoly,  will  invite  retaliation  from  foreign  Govern- 
ments whose  citizens  export  fine  steels  into  this  market. 

PARAGRAPHS  305,  309,  385,  AND  393.— NICKEL  ALLOYS. 


T  A  YOKING  PROPOSED  OR  HIGHER  DUTIES  AND  REQUESTING  RECLASSIFICATION  : 

The  Driver-Harris  Co.,  Harrison,  N.  J.  (Revision  of  a  brief  presented  to 
the  Ways  and  Means  Committee,  presented  through  Senator  Frelinghuy- 
sen;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — German  wiredrawers  receive  600  marks 
per  week,  equivalent  to  $12,  while  American  drawers  are  paid  $25  to 
$50  per  week.  The  American  industry  is  a  war  development,  and 
can  not  successfully  compete  with  low-priced  German  labor. 

Size  of  industry. — The  company  produces  nickel  and  nickel  al- 
loys of  a  range  of  compositions  radically  different  from  that  ordi- 
narily understood  by  the  term  "  nickel  steel " ;  they  contain  from  25 
to  75  per  cent  nickel  and  from  10  to  22  per  cent  chromium.  The 
material  is  used  in  the  form  of  wire,  sheet,  strip,  and  strand,  for 
electrical  purposes,  and  in  castings,  etc.,  for  mechanical  and  chemi- 
cal purposes,  especially  for  use  in  heat-treating  operations  in  various 
industries.  Before  the  war  none  of  the  fabricated  forms  of  nickel 
were  produced  in  the  United  States,  but  were  imported  in  a  partly 
finished  state. 

Rates  suggested. — Paragraph  305:  Include  metal  alloys,  metal 
alloy  castings  used  as  a  resistant  to  high  temperature  and  acids  in 
the  form  of  carbonizing  boxes,  retorts,  lead  pots,  cyanide  pots, 
pyrometer  protection  tubes,  and  for  other  heat-treating  purposes,  at 
50  per  cent  ad  valorem. 

Paragraph  309:  Include  bi-metal  wire  and  rods,  as  well  as  the 
other  forms  mentioned,  and  increase  the  duty  to  50  per  cent. 

Paragraph  385 :  Include  castings  and  wire  in  the  second  part  of 
the  paragraph,  and  increase  the  duty  to  50  per  cent. 

Paragraph  393  :  Include  *'  or  alloys  "  after  the  metals  enumerated, 
and  increase  the  duty  to  50  per  cent. 


178  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 


PARAGRAPH  309. — THERMOSTATIC  METAL. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES: 

Mr.  George  F.  Kurd,  representing  the  H.  A.  Wilson  Co.,  Newark,  N.  J. 
FAVORING  LOWER  DUTIES  : 

Mr.  E.  L.  Clause,  representing  the  Clause  Automatic  Gas  Cock  Co.,  Milwau- 
kee, Wis. 

Mr.  George  L.  Meyer,  jr.,  representing  the  Stewart  Warner  Speedometer 
Corporation,  Chicago,  111. 

Hearings :  Pages  1795-1799. 

Witness :  Mr.  G.  F.  Hurd,  representing  the  H.  A.  Wilson  Co. 

The  witness  described  this  product  as  a  metal  composed  of  two 
separate  metals  welded  throughout  their  entire  contact  surfaces,  the 
one  metal  having  a  very  widely  different  coefficient  of  expansion  from 
the  other.  The  action  of  the  two  metals  thus  welded  together,  as 
temperature  are  changed,  results  in  curling  or  distortion  of  the 
metal,  this  condition  being  used  to  set  in  motion  a  number  of  mechan- 
ical operations,  automatically  acting  as  a  means  of  controlling  and 
regulating  the  particular  device.  This  application  of  the  metal 
serves  to  accomplish  great  economies  in  fuel  consumption.  Some 
very  fine  and  delicate  instruments  are  made  from  this  combination, 
so  that  a  variation  in  distortion  of  one-sixty-fourth  of  an  inch  will 
result  in  a  difference  of  fifty  degrees  in  the  temperature  of  an  oven. 

Costs  and  selling  prices. — In  1920  the  cost  of  producing  thermo- 
static  metal  was  $3.58  per  pound,  and  the  Wilson  Co.  has  al- 
ways sold  at  a  loss  because  of  a  desire  to  develop  the  industry. 
The  high  price  was  due  to  several  causes,  including  the  fact  that  the 
industry  is  in  a  state  of  development,  both  as  to  manufacturing 
processes  and  the  uses  to  which  the  metal  can  be  put.  Highly  paid 
workmen  have  had  to  be  employed  and  the  greatest  care  exercised. 
In  spite  of  these  factors,  there  is  about  50  per  cent  waste  of  raw 
material,  or  50  per  cent  scrap,  as  the  result  of  the  manufacturing 
operation.  The  estimated  cost  of  the  German  metal  laid  down  in 
New  York  is  $1.40  per  pound,  the  great  factor  in  that  differential 
being  the  difference  in  the  exchange  rate.  There  is  also  a  great  dif- 
ference in  the  labor  costs  and  probably  also  in  the  material  costs. 

Size  of  industry. — Before  the  war,  Germany  was  the  sole  source 
of  supply  of  this  metal.  American  producers  have  now  capacity 
ample  and  sufficient  to  take  care  of  the  domestic  markets.  The  Gen- 
eral Electric  Co.  was  a  manufacturer  of  this  metal,  but  witness  thinks 
they  have  given  it  up. 

Classification. — This  metal,  a  scientific  instrument,  goes  into  fin- 
ished products  which  are  scientific  instruments,  yet  it  is  classified 
with  rough  products,  such  as  copper  and  coated  steel.  Neither  in 
the  method  of  manufacture  nor  in  the  materials  used  nor  in  the 
function  of  the  product  is  thermostatic  metal  in  any  way  similar  to 
the  metals  described  in  section  309.  It  costs  $3.58  per  pound  and 
is  classified  with  other  metals  costing  from  15  to  40  cents  a  pound. 
Thermostatic  metal  should  have  a  separate  classification. 

Rates  suggested. — A  specific  rate  of  $2.50  per  pound,  sufficient  to 
offset  the  difference  in  exchange  between  the  dollar  and  the  mark 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  179 

and  the  difference  between  German  and  American  costs.  With  this 
duty,  the  estimated  cost  of  the  German  product,  laid  down  in  New 
York,  would  be  about  $2.97,  equivalent  to  about  75  per  cent  ad 
valorem  under  American  valuation.  On  the  return  of  the  rate  of 
exchange  to  normal,  the  duty  of  $2.50  per  pound  will  increase  the 
tariff  burden,  but  it  would  not  leave  a  monopoly,  as  the  industry 
is  not  covered  by  patents; 

Remarks. — Statements  in  rebuttal  of  Mr.  Kurd's  statements  fol- 
low. 

Witness :  Mr.  G.  L.  Meyer,  jr.,  representing  the  Stewart  Warner 
Speedometer  Corporation,  in  a  letter  of  October  6,  1921,  to  the  Senate 
Committee  on  Finance. 

A  communication  in  rebuttal  of  Mr.  George  F.  Kurd's  testimony 
(pp.  1795-1799)  states  that,  prior  to  the  war,  the  Stewart  Warner 
Speedometer  Corporation  purchased  thermostatic  metal  abroad,  pay 
ing  about  $2.75  per  pound  f.  o.  b.  Chicago.  It  was  not  until  the 
General  Electric  Co.  commenced  to  manufacture  the  metal  that  the 
corporation  was  able  to  purchase  it  in  this  country,  although  compe- 
tition was  then  soon  established  between  the  General  Electric  Co. 
and  the  H.  A.  Wilson  Co.  It  is  understood  that  the  General  Elec- 
tric Co.  has  discontinued  the  manufacture  and  turned  over  its  proc- 
ess and,  in  fact,  one  of  its  men,  to  the  H.  A.  Wilson  Co.  It  is  be- 
lieved that  an  absolute  monopoly  would  be  established  if  a  prohibi- 
tive duty  were  assessed  on  the  imported  metal. 

The  corporation  fails  to  see  why  others  should  be  penalized  for 
the  excessive  waste  caused,  .apparently,  by  inefficient  and  improper 
methods  in  the  manufacture  of  this  metal  by  the  H.  A.  Wilson  Co. 
If  foreign  manufacturers  can  produce  it  without  such  an  excessive 
waste,  as  they  apparently  can,  at  prices  near  those  formerly  paid 
them,  why  should  the  duty  be  made  high  enough  to  cover  this 
waste  and,  possibly,  prevent  the  importation  of  the  foreign  metal? 

A  duty  of  $2.50  per  pound,  as  asked  by  the  H.  A.  Wilson  Co..  is 
very  much  too  high  and  a  protest  against  it  is  entered.  On  the 
other  hand,  a  duty  based  on  American  valuation  would  make  it  im- 
possible to  determine  the  cost  of  this  imported  metal  in  advance. 

The  Stewart  Warner  Speedometer  Corporation  is  one  of  the 
largest  users  of  thermostatic  metal  in  the  United  States. 

Witness :  Mr.  E.  L.  Clause,  representing  the  Clause  Automatic 
Gas  Cock  Co.,  in  a  letter  of  October  4,  1921,  to  the  Senate  Committee 
on  Finance. 

Costs  and  selling  prices. — The  Clause  Automatic  Gas  Cock  Co. 
produces  the  highest  grade  of  thermostatic  metal  at  $1  per  pound, 
which  includes  10  to  15  per  cent  profit  on  the  manufacture.  In  the 
opinion  of  the  Clause  Co.,  the  Wilson  Co.  has  essentially  developed 
nothing  whereby  it  could  have  lost  money.  The  company's  metal 
has  not  proved  any  superiority,  and  they  have  not  solicited  the  sale 
of  their  metal  in  compliance  with  their  testimony.  The  Wilson  Co. 
is  not  interested  only  in  the  manufac^^^^^^^rniostatic  metal; 
it  is,  in  fact,  more  interested  in  the  niamiJj&lifre  of  complete  heat 
controls,  for  which  reason  it  has  interfered  greatly  with  the  progress 
of  the  Clause  Co.  in  developing  one  of  the  most  perfect  and  essen- 
tial instruments  ever  placed  on  the  market.  The  waste  experienced 
by  them  in  the  manufacture  of  this  metal  is  10  per  cent,  as  against 


180  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

50  per  cent  claimed  by  Mr.  Hurd.  Continuing  this  subject,  the 
witness  said  that  a  duty  of  75  per  cent  to  protect  a  50  per  cent 
waste,  due  to  the  manufacturing  methods  of  the  Wilson  Co.,  and 
based  on  the  present  rate  of  exchange,  would  cause  an  intolerable 
situation.  With  a  return  of  the  exchange  rate  to  normal,  the  duty 
would  leave  a  field  clear  of  competition  to  the  Wilson  Co.,  which 
is  in  itself  a  monopoly. 

Rates  suggested. — A  duty  not  higher  than  15  to  20  per  cent  on  the 
foreign  invoice  value,  which  would  not  impede  natural  develop- 
ments. There  is  room  for  healthy  competition,  and  reasonable  im- 
portation of  this  material  will  act  as  a  counterbalance  and  prevent 
excessive  prices. 

Remarks. — Thermostatic  heat  controls,  requiring  thermostatic 
metal,  are  applied  to  gas  stoves  to  secure  the  highest  grade  of  baking, 
as  for  bread,  cake,  and  pie,  with  efficiency,  economy,  and  convenience. 


The  H.  A.  Wilson  Co.,  in  a  letter  to  the  committee,  dated  Decem- 
ber 21,  1921,  deals  with  the  contentions  (a)  that  the  company's 
methods  are  unreasonably  wasteful  and  (b)  that  the  desired  duty  of 
$2.50  per  pound  or,  alternatively,  of  75  per  cent  on  American  valu- 
ation, would  exclude  German  imports  of  thermostatic  metal  and 
result  in  the  establishment  of  a  Wilson  Co.  monopoly  in  this  product. 

As  regards  the  waste  in  manufacture,  it  is  pointed  out  that  a  waste 
of  about  50  per  cent  of  the  material  used  does  not  represent,  as  it 
appears  to  have  been  interpreted,  a  loss  of  50  per  cent  of  the  cost  of 
the  finished  product.  "To  be  precise,  this  loss  is  equivalent  to  36$ 
per  cent  of  the  price  paid  by  the  Wilson  Co.  for  its  raw  materials, 
and  represents  only  about  10  per  cent  of  the  total  cost  of  manufac- 
turing and  selling."  The  loss  of  metal  is  stated  to  be  inevitable,  no 
matter  where  the  manufacture  is  carried  on,  essential  details  of 
manipulation  entailing  an  unavoidable  wastage,  but  of  raw  ma- 
terial only. 

No  reasonable  expense  has  been  spared  by  the  Wilson  Co.  to  estab- 
lish an  efficient  plant  for  the  manufacture  of  this  metal,  and  the 
methods  employed  are  the  result  of  careful  and  exceedingly  ex- 
pensive experimentation.  The  company  does  not  ask  for  protection 
against  the  cost  of  careless,  inefficient,  and  wasteful  methods  of 
manufacture. 

Touching  the  alleged  tendency  toward  a  Wilson  Co.  monopoly  in 
this  field,  the  absence  of  patents  covering  the  production  of  this 
metal  is  emphasized,  as  is  the  fact  that  there  are,  in  America,  a  num- 
ber of  concerns  who  are  familiar  with,  and  have  had  experience  in, 
the  manufacture  of  thermostatic  metal.  That  being  so,  any  exaction 
of  an  excessive  price  would  be  immediately  followed  by  effective  com- 
petition. The  only  duty  asked  for  by  the  company  is  such  as  will 
provide  a  margin  between  American  costs  of  manufacture  and  the 
cost  of  Germffn  ^utt  iai(j  down  in  New  York.  As  matters  now 
stand,  the  American  nVa'rket  pays  for  German  goods  in  many  lines, 
not  a  price  bearing  any  reasonable  relation  to  German  costs  of  pro- 
duction, but  the  price  which  the  German  importer  fixes  as  the  maxi- 
mum at  which  he  can  dominate  the  American  market. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  181 

The  Wilson  Co.  has  made  every  endeavor  to  be  accurate  and  truth- 
ful. Following  the  hearing,  its  books  and  its  plant  were  thrown 
open  to  the  investigation  of  the  Treasury  Department  and  the  results 
are  available  to  the  committee.  The  duty  requested  is  vital  to  the 
continuance  of  the  manufacture  of  thermostatic  metal  in  America. 

The  H.  A.  Wilson  Co.,  in  a  further  letter,  published  as  a  25 -page 
pamphlet,  repeats  much  of  the  witness's  oral  testimony  and  gives, 
in  tabulated  form,  the  detailed  cost  of  production  and  sale  of  thermo- 
static metal  by  the  company  for  the  years  1918  to  1921. 

PARAGRAPH  309;  ALSO  PARAGRAPHS  305  AND  385. — FORGED  COMBINA- 
TIONS OF  METALS. 

WITNESS,  AND  INTEREST  REPRESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  J.  R.  Boker,  representing  H.  Boker  &  Co.  (Inc.),  New  York  City. 

Hearings :  Pages  1787-1795. 

Costs  and  selling  prices. — Paragraph  309:  Sheets  or  plates  com- 
posed of  iron,  steel,  copper,  nickel,  etc.,  with  layers  of  other  metal  or 
metals  imposed  thereon  by  forging,  hammering,  or  welding,  divide 
themselves  into  two  distinctly  different  groups — group  A,  iron  and 
steel  sheets,  plates,  wires,  and  bars,  plated  with  other  metals,  and  group 
B,  copper,  nickel,  or  other  metal  sheets  plated  with  other  metals.  The 

? rices  of  the  latter  are  very  much  higher  than  those  of  the  former, 
ron  and  steel  sheets  plated  with  other  metals  vary  in  price  according 
to  fitness  between  $300  and  $400  per  ton,  or  15  to  20  cents  per  pound. 
Copper,  nickel,  and  other  metal  sheets  plated  with  other  metals  sell 
for  a  much  higher  price.  This  second  group  of  plated  sheets  includes 
thermostatic  metal. 

Paragraph  385 :  Pure  nickel  bars  nine-sixteenths  inch  in  size  are 
sold  by  American  manufacturers  at  63  cents  per  pound.  In  Europe 
the  same  bars  were  selling  at  61  cents  per  pound  when  the  exchange 
rate  on  a  mark  was  1.5  cents.  Pure  nickel  sheets  and  pure  nickel 
wire,  0.04  inch,  are  sold  by  American  manufacturers  at  90  cents  per 
pound.  In  Europe,  at  an  exchange  rate  of  1.5  cents  to  the  mark, 
they  were  sold  at  65  cents  per  pound. 

Paragraph  305 :  American  high-speed  steel  now  sells  in  the  United 
States  at  80  cents  per  pound.  English  high-speed  steel  sells  at  58 
vents  per  pound  at  Liverpool. 

Size  of  industry. — Paragraph  309 :  Plated  iron  and  steel  sheets 
and  wire  have  been  imported  into  this  country  for  a  number  of  years 
in  small  quantities,  hardly  ever  in  excess  of  25  to  50  tons  annually. 
So  far  as  witness  knows,  there  is  no  industry  in  this  country  produc- 
ing similar  sheets.  Copper,  nickel,  or  other  metal  sheets  plated  with 
other  metals  are  manufactured  to  a  limited  extent  in  the  United 
States,  but  such  sheets  are  largely  imported. 

Rates  suggested. — Paragraph  309 :  On  plated  iron  and  steel  sheets 
a  rate  of  15  per  cent  ad  valorem  or  a  specific  duty  not  exceeding 
3|  cents  per  pound  is  recommended.  On  sheets  or  plates  composed 
of  copper,  nickel,  or  other  metals,  with  layers  of  metal  or  metals 
imposed  thereon,  a  duty  of  20  per  cent  ad  valorem  or  a  specific  rate 
of  10  cents  per  pound. 

77134—22 13 


182  •  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 

Paragraph  385 :  The  word  "  tubes  and  wire  "  should  be  added  to 
line  14  of  this  paragraph.  It  is  also  desired  that,  owing  to  the  duties 
being  assessed  on  American  selling  prices,  pure  nickel  or  alloys  of 
which  nickel  is  the  component  material  of  chief  value,  in  bars  and 
rods,  straight  or  in  coils,  be  dutiable  at  10  per  cent  ad  valorem ;  wire 
tubes,  sheets,  strips,  and  strands  at  15  per  cent;  anodes,  cast,  at  10 
per  cent ;  anodes,  rolled,  15  per  cent ;  and  electrodes,  15  per  cent. 

It  is  suggested  that  alloy  steel  be  taken  out  of  paragraph  304  and 
the  duty  in  paragraph  305  be  made  12^  per  cent  ad  valorem.  It  is 
also  suggested  that  the  American  valuation  duty  on  tool  steels  under 
paragraph  304  be  reduced  from  20  per  cent  ad  valorem  to  10  per  cent 
ud  valorem.  The  principal  reason  for  this  reduction  is  that  English 
manufacturing  costs  are  extraordinarily  high  and  will  not  be  any 
lower  for  a  long  time. 

PARAGRAPH  310.— TIN  PLATE. 
WITNESS,  AND  INTEBESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  E.  R.  Crawford,  representing  the  Association  of  Tin  Plate  Manu- 
facturers, which  includes  all  the  independent  makers  of  the  country 
outside  of  the  United  States  Steel  Corporation ;  the  included  concerns 
produce  55  to  60  per  cent  of  the  country's  output;  address,  McKeesport, 
Pa. 

Hearings :  Pages  1800-1803. 

Costs  and  selling  prices. — No  definite  statement  was  made,  but  it 
was  urged  that  the  duties  proposed  in  the  Fordney  bill  on  pig  tin,, 
fluorspar,  ferromanganese  and  other  raw  products  would  add  ma- 
terially to  the  costs  of  the  tinplate  and  other  steel  producers. 

Size  of  industry. — The  normal  consumption  of  tin  plate  in  this 
country  is  pretty  close  to  35,000,000  boxes  or  175,000,000  pounds. 
The  tin-plate  industry,  the  largest  American  consumer  of  pig  tin, 
consumes  2,500,000  tons  of  steel  per  annum  and  employs  in  direct 
labor  approximately  40,000  workmen. 

Kates  suggested. — A  rate  of  1.2  cents  per  pound  on  tinplate  in. 
place  of  the  15  per  cent  ad  valorem  rate  imposed  by  the  act  of  1913. 
Foreign  values  are  in  a  very  unstable  state  and  a  specific  duty  is  con- 
sequently preferable  to  an  ad  valorem. 

While  willing  to  accept  the  duty  of  2  cents  per  pound  on  pig  tinr 
the  witness  felt  that,  from  the  standpoint  of  developing  the  export 
trade,  it  would  be  very  much  better  if  this  could  be  taken  off.  ' 

PARAGRAPH  312 ;  ALSO  PARAGRAPH  393. — METAL  SASHES  AND  FRAMES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.    T.    H.    Ringrose,    representing   the   International    Casement   Co.,    of 
Jamestown,  N.  T.,   and   the  Crittall  Casement  Co.    (Inc.),  of  Detroit, 
Mich. 
The  Manufacturers  Association,  Jamestown,  N.  Y.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.  Aaron  C.  Thayer,  representing  Henry  Hope  &  Sons  (Ltd.),  an  English 
corporation,  and  Henry  Hope  &  Sons,  a  New  York  corporation,  agent  for 
Henry  Hope  &  Sons  (Ltd.)  ;  address,  New  York  City. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  183 

Hearings :  Pages  2091-2096. 

Witness :  Mr.  T.  H.  Ringrose. 

Costs  and  selling  prices. — Labor  cost  in  England  is  less  than  in  the 
United  States.  Wages  have  increased  in  England  to  three  times  the 
prewar  rates,  while  in  the  United  States  they  have  increased  only 
to  twice.  Nevertheless,  wages  are  still  lower  in  England  than  in 
the  United  States  and  will  come  down  faster  than  wages  in  the 
United  States. 

Size  of  industry. — The  International  Casement  Co.,  of  Jamestown, 
and  the  Crittall  Casement  Co..  of  Detroit,  are  the  only  two  manu- 
facturers of  steel  casement  sashes  in  the  United  States.  At  James- 
town there  are  normally  employed  about  100  men  and  at  Detroit 
about  120  men.  The  value  of  the  output  of  the  Jamestown  plant 
last  year  amounted  to  $440,000.  In  addition,  there  was  $70,000 
worth  imported  from  England. 

Rates  suggested. — The  witness  is  satisfied  with  the  rate  of  duty 
proposed  in  paragraph  393  of  the  Fordney  bill.  He  took  issue  with 
Mr.  Thayer,  representing  Henry  Hope  &  Sons,  of  Birmingham, 
England,  and  recommended  the  continuance  of  the  duty  of  10  per 
cent  ad  valorem  under  the  act  of  1913.  (See  hearings,  pp.  2088- 
2091.) 

The  International  Casement  Co.,  in  supplemental  briefs  respec- 
tively dated  July  7  and  August  24.  1921,  states  that  there  would  be 
some  doubt  under  the  provisions  of  H.  R.  7456  as  to  whether  steel 
casement  sashes  would  be  dutiable  at  25  per  cent  under  paragraph 
312  or  dutiable  at  35  per  cent  under  paragraph  393.  A  duty  of  35 
per  cent  is  suggested  as  a  fair  protection. 

This  point  is  further  discussed,  in  the  same  interest,  by  Mr.  Charles 
A.  Ogren,  attorney  at  law,  New  York  City.  Writing  on  July  12, 
1921,  he  expresses  doubt  whether  under  the  bill  as  it  stands  steel 
sashes  and  frames  will  be  dutiable  at  25  per  cent,  under  paragraph 
312,  as  "  structural  steel  shapes  fabricated  for  use,"  or  at  35  per  cent, 
under  paragraph  393,  as  "  articles  not  specially  provided  for  com- 
posed of  steel."  Ambiguity  would  be  avoided  if  the  words  in 
paragraph  312,  "fabricated  for  use,"  were  omitted  and  the  words 
"  shipped  knocked  down  "  substituted. 

Witness:  The  Manufacturers'  Association,  Jamestown,  N.  Y. 
(Brief;  no  appearance  at  hearings.) 

Rates  suggested. — A  duty  of  35  per  cent  ad  valorem,  together  with 
the  removal  of  any  doubt  as  to  the  proper  classification  of  steel  sashes 
and  frames. 

Remarks. — The  manufacture  of  steel  sashes  and  frames  in  the 
United  States  is  in  its  infancy  and  should  be  given  protection  suffi- 
cient to  enable  the  manufacturers  of  this  country  to  develop  their 
business  and  pay  American  wages  to  American  workmen. 

Hearings :  Pages  2088-2091.  (See  also  statement  of  T.  H.  Ring- 
rose,  of  Jamestown,  N.  Y.,  pp.  2091-2096.) 

Witness :  Mr.  Aaron  C.  Thayer. 

Costs  and  selling  prices. — fto  definite  statement  regarding  costs 
except  the  contention  that  under  the  10  per  cent  ad  valorem  duty 
imposed  by  the  act  of  1913  the  American  producer  is  sufficiently  pro- 
tected to  exist  and  prosper. 


184  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

A  brief  submitted  to  the  Senate  Finance  Committee  by  Mr.  Thayer 
shows  the  difference  in  bids  submitted  by  Henry  Hope  &  Sons,  the 
International  Casement  Co.,  and  the  Crittall  Co.  for  window  frames 
and  sashes  in  Guthrie,  Okla.,  Princeton,  N.  J.,  Richmond,  Va.,  Cleve- 
land, Ohio,  and  Washington  University.  These  bids  were  as  follows : 

Scottish  Rite  Cathedral,  Guthrie,  Okla. : 

Estimate  submitted  by  H.  Hope  &  Sons,  Dec.  16,  1920,  amounting 
to $40,080 

Secured  by  Grittall  Co.  for 35,  250 

Princeton  University,  Princeton,  N.  J. : 

Estimate  submitted  by  H.  Hope  &  Sons,  Feb.  26,  1921,  amounting 
to 25,585 

Secured  by  International  Casement  Co.  at  about 23,  200 

Federal  Reserve  Bank,  Richmond,  Va. : 

Estimate  submitted  by  H.  Hope  &  Sons,  Mar.  26,  1921,  amounting 

to 19,004 

Secured  by  Crittall  Co.  at  about 16,  500 

Cleveland  public  hall,  Cleveland,  Ohio: 

Estimate  submitted  by  H.  Hope  &  Sons,  Feb.  9,  1921,  amounting  to_     36,  964 

Crittall  Co 33,334 

International  Casement  Co 28,  654 

Educational  Hall,  Washington  University: 

Estimate  submitted  by  H.  Hope  &  Sons,  July  6,  1921,  amounting  to_    30,  327 

Secured  by  Crittall  Co 27,453 

Metal  sashes  and  window  frames  made  in  this  country  and  in 
England  are  practically  the  same.  There  are  two  classes  of  sashes — 
the  factory  or  industrial  sash,  made  in  large  quantities  and  used  in 
large  factories,  and  the  more  expensive  sash  called  casements,  going 
into  libraries,  asylums,  office  buildings,  'and  residences. 

Size  of  industry. — No  definite  statement  made  regarding  the  size 
of  the  American  industry.  The  International  Casement  Co.  was  in- 
corporated with  a  capital  of  $50,000  in  1912,  and  now  has  a  capital 
stock  of  $78,450  and  a  surplus  and  undivided  profit  of  $102,000.  The 
Crittall  Casement  Window  Co.  has  a  capital  stock  of  $122,000,  of 
which  $97,000  was  paid  in  cash  and  $25,000  represents  contracts  with 
the  Crittall  Manufacturing  Co.  of  England.  In  addition,  this  com- 

^iy  has  a  surplus  in  use  as  capital  and  undivided  profit  of  over 
,000.     There  are  other  American  companies  manufacturing  metal 
sashes  and  window  frames. 

Rates  suggested. — A  duty  of  10  per  cent  ad  valorem,  as  under  the 
act  of  1913.  Sashes  and  window  frames  included  in  the  paragraph 
on  structural  shapes  in  the  act  of  1913  are  not  mentioned  in  the 
Fordney  bill  and  are  consequently  governed  by  the  catchall  clause 
in  paragraph  393.  The  result  of  this  omission  is  that  the  ad  valorem 
duty  on  sashes  and  window  frames  is  increased  from  the  25  per  cent 
ad  valorem  duty  of  paragraph  312  (governing  structural  shapes)  to 
35  per  cent  in  paragraph  393.  The  proposed  duty  in  paragraph  393 
is  three  and  one-half  times  as  great  as  the  existing  duty  (act  of  1913) 
with  the  added  handicap  of  the  ad  valorem  rate  being  reckoned  on 
market  values  in  this  country  and  not  on  market  values  in  England. 
Mr.  Thayer  advocates  the  10  per  cent  ad  valorem  duty  on  the  fol- 
lowing grounds:  (1)  The  present  10  per  cent  duty  dates  from  1913 
and  under  it  competitors  in  this  country  prospered  and  largely  in- 
creased their  business,  while  the  business  of  importers  remained 
practically  stationary;  (2)  only  two  competitors  in  this  country  ap- 


DIGEST   OF   TAB1FF    HEARINGS,   H.   R.   7456.  185 

peared  before  the  Ways  and  Means  Committee  to  urge  an  increase  in 
duty,  and  these  two,  namely,  The  International  Casement  Co.,  of 
Jamestown,  N.  Y.,  and  the  Crittall  Casement  Window  Co.,  of  Detroit, 
Mich.,  are  both  offshoots  of  English  competitors. 

Mr.  Thayer  contends  that  the  present  duty  of  10  per  cent  fully 
covers  the  difference,  if  any,  between  labor  and  material  in  England 
and  the  United  States.  Furthermore,  the  duty  of  35  per  cent  pro- 
posed under  the  present  act  would  drive  the  English  concerns  out  of 
American  markets  and  to  that  extent  reduce  revenue. 

PARAGRAPH  315. — COLD-ROLLED  AND  TEMPERED  STEEL. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Athenia  Steel  Co.,  Athenia,  N.  J.     (Brief;  no  appearance  at  hearings.) 

Comparability. — The  labor  cost  of  producing  cold-rolled  and  tem- 
pered steel  is  about  70  per  cent  of  the  total.  Foreign  concerns,  pay- 
ing wages  50  per  cent  less  than  those  paid  by  American  manufac- 
turers, are  therefore  able  to  sell  goods  in  this  country  below  the 
American  cost  of  production.  Prices  on  hot-rolled  material  in 
Sweden,  Germany,  and  other  countries  do  not  differ  materially  from 
domestic  prices  on  similar  grades,  but  on  more  highly  finished  mate- 
rial Swedish  prices  are  very  much  lower. 

In  January,  1921,  the  labor  employed  in  American  mills  manu- 
facturing cold-rolled  strips  and  wire  received  from  $8  to  $12  per 
day,  and  the  workmen  in  a  Swedish  mill,  producing  identically  the 
same  grades  and  similar  amounts  per  day,  received  15  crowns — 
approximately  $3.75.  Wage  rates  in  Germany  were  and  are  lower 
than  Swedish.  In  normal  times  German  workmen  received  8  to  9 
marks  per  day,  or  $2  to  $2.15.  In  January,  1921,  they  received  40 
to  50  marks — only  60  to  75  cents — per  day.  In  August,  1921,  Ameri- 
can wages  had  been  reduced  about  20  per  cent  from  the  above  figures, 
but  similar  reductions  had  taken  place  in  Sweden  and  probably  in 
Germany. 

After  the  cold-rolling  process  several  further  manufacturing 
processes  are  required,  such  as  tempering,  for  which  American  labor 
receives  $8  to  $12  per  day;  polishing  and  coloring,  at  but  slightly 
lower  wages;  and  inspecting,  paid  for  at  the  rate  of  $7  to  $9  per 
clay.  These  aclditional  processes  make  the  cost  of  tempered  and 
polished  material  greater  by  approximately  50  per  cent  than  cold 
rolled,  and  all  the  added  cost  is  labor.  Tempered,  polished,  and 
crude  clock-spring  material,  selling  at  35  cents  per  pound,  costs  in 
the  United  States  31  cents  per  pound,  of  which  21.70  cents  is  labor. 
The  German  cost,  calculated  on  the  basis  of  labor  at  75  to  80  cents 
per  day,  would  be,  roughly,  one-tenth  of  the  American  cost,  or  3.10 
cents  per  pound.  Swedish  cost,  based  on  labor  at  $3.75  per  day, 
would  be  from  one-half  to  two-thirds  less  than  the  American  cost, 
or  15£  cents  per  pound. 

Rates  suggested. — A  duty  of  50  per  cent  ad  valorem  on  all  cold- 
rolled  steel  and  60  per  cent  on  tempered  and  polished  steel. 


186  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPH  320. — ELECTRIC  STORAGE  BATTERIES. 

WITNESS. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

The  Edison  Storage  Battery  Co.,  Orange,  N.  J.     (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — The  company  states  as  its  opinion  that  a  truly 
protective  rate  for  electric  storage  batteries  should  be  40  per  cent 
or  more.  In  the  tariff  of  1897  lead  batteries  were  protected  by  a 
rate  of  45  per  cent.  At  present  the  rate  on  pig  lead  is  nearly  50  per 
cent.  The  proposed  rate  of  30  per  cent  in  H.  R.  7456  would  subject 
the  industry  to  overwhelmingly  unfair  competition  which  would 
close  American  factories  and  throw  a  large  number  of  American 
workmen  out  of  work. 

PARAGRAPH  321. — ANTIFRICTION  BALLS. 

WITNESS,  AND  INTEREST  REPRESENTED. 
REQUESTING  RECLASSIFICATION  : 

Mr.  Adolph  E.  Brion,  representing  Peter  A.  Frasse  &  Co.,  importers,  New 
York  City. 

Hearings :  Pages  1819-1823. 

Costs  and  selling  prices. — In  1917,  one-eighth-inch  balls  of  very 
high  quality  sold  for  67  cents  a  thousand;  to-day  (1921)  they  are 
selling  from  $1.80  to  $2.40  per  thousand.  This  is  because  there  is  so 
little  competition. 

Size  of  industry. — There  are  seven  manufacturers  of  steel  balls  and 
one  of  them  practically  monopolizes  the  entire  market.  There  is 
really  only  one  large  plant  to-day. 

Rates  suggested. — Paragraph  321  should  be  divided  so  as  to  classify 
balls  and  rollers  separately  from  the  finished  product,  as  the  ball- 
bearing manufacturers  are  buyers  of  balls  and  would  not  try  to  keep 
the  tariff  so  high.  With  a  small  number  of  steel-ball  manufacturers, 
it  is  possible  to  fix  arbitrary  costs,  which  would  make  importation  of 
steel  balls  almost  impossible.  Increased  prices  to  the  users  of  steel 
balls  are  inevitable  on  an  American  valuation  basis. 

PARAGRAPH  325. — ANVILS. 

WITNESS,  AND  INTEREST  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   Campbell   M.   Voorhees,   representing  anvil   manufacturers;    address, 
Columbus,  Ohio. 

Hearings :  Pages  1826-1830. 

Costs  and  selling  prices. — Labor  is  about  50  per  cent  higher  than 
it  was  at  the  beginning  of  the  war.  The  freight  on  coal  costs  as  much 
as  the  coal.  Labor  and  overhead  in  the  cost  of  the  anvil  are  70  to  80 
per  cent  of  total  cost,  leaving  20  to  30  per  cent  for  materials.  The 
selling  price  in  1918,  1919,  and  1920  was  20  cents  per  pound.  The 
average  price  in  1921  is  15  cents  per  pound.  The  Swedish  anvil  at 
the  present  time  is  being  imported  into  this  country,  with  prices 
ranging  about  12^  cents  per  pound  delivered  to  the  interior  of  the 
United  States. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 


187 


Size  of  industry. — The  total  investment  of  machinery  and  plant 
in  the  United  States'  anvil  industry  is  approximately  "$750 ,000  to 
$1,000,000.  The  domestic  capacity  is  about  200  to  300  per  cent  of  the 
domestic  consumption.  The  actual  normal  domestic  production  is 
approximately  4,500,000  pounds  per  year. 

Comparability. — The  foreign  product  is  directly  competitive, 
owing  to  lower  costs  of  labor  and  freight  rates. 

Rates  suggested. — A  specific  duty  of  2  cents  per  pound.  With  an 
average  selling  price  over  a  period  of  years  of  10  cents  per  pound, 
15  per  cent  ad  valorem  on  American  valuation  would  be  1^  cents  per 
pound.  Considering  10  cents  per  pound  as  the  average  selling  price, 
a  specific  duty  of  2  cents  per  pound  would  be  20  per  cent  ad  valorem, 
American  valuation. 

PARAGRAPH  329. — CHAINS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

PAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  David  S.  Day,  representing  chain  manufacturers;  address,  Bridgeport, 
Conn. 

Hearings :  Pages  1830-1839. 

Costs  and  selling  prices. — Actual  comparative  costs  of  manufacture 
In  Germany  and  in  the  United  States  are  not  available.  German  com- 
mon laborers  in  chain  factories  were  paid  at  the  rate  of  65  marks  a 
day  in  December,  1920,  which  was  the  equivalent  of  $1.  as  compared 
with  46  cents  an  hour  for  an  8-hour  day,  or  $3.68  a  day,  in  the 
United  States.  German  wages  for  this  class  of  workers  are  therefore 
only  27  per  cent  of  those  paid  in  the  United  States.  The  labor  com- 
ponent in  the  cost  of  manufacture  averages  35  per  cent  in  the  larger 
sizes  to  60  per  cent  in  the  smaller  sizes  of  chain.  The  labor  cost  in 
the  United  States  ranges  from  35  to  60  cents  out  of  each  dollar's 
worth  of  goods  produced,  while  the  corresponding  labor  cost  in  Ger- 
many would  average  from  9.4  cents  to  12.5  cents.  Except,  therefore, 
in  classes  of  chain  having  the  lowest  labor  component,  the  specific 
duty  of  25  per  cent  for  machine  and  sprocket  chain  and  20  per  cent 
for  "other  classes  of  chain  will  not  even  cover  the  differential  between 
German  and  American  labor.  The  importers  of  foreign  chain  are 
underquoting  American  manufacturers  to  a  very  large  degree — some- 
thing like  40  per  cent. 


Size. 

English 
price  at 
$4.86. 

English 
pric.eat 

American 
factory  cost 

pounds. 

IJ-inch                                                 ..'.... 

$7.25 

$6.12 

$8.45 

IJ-inch 

7.02 

5.96 

8.01 

2-inch 

7.72 

6.44 

8.92 

2J-inch  .  .  . 

7.90 

6.57 

7.97 

2J-inch  

8.00 

6.66 

8.01 

Size  of  industry. — The  United  States  investment  at  the  present 
time  in  the  chain-manufacturing  industry  and  in  articles  fabricated 
from  chain  is  estimated  at  $20,000.000,  and  the  number  of  men  em- 


188  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

ployed  in  the  industry  as  between  8,500  and  10,000.  The  amount  of 
the  investment  in  the  manufacture  of  anchor  chain  is  approximately 
$2,000,000,  and  the  number  of  men  employed  is  approximately  1,500. 

Comparability. — Direct  competition  between  the  domestic  and  the 
foreign  producer  has  been  largely  confined  to  chain  under  five- 
sixteenths  of  an  inch  in  diameter. 

Rates  suggested. — Chain  and  chains  of  all  kinds  to  have  specific 
duties  coupled  with  a  minimum  ad  valorem  duty  of  25  per  cent.  In 
chains  less  than  five-sixteenths  of  an  inch  in  diameter,  going  down 
to  the  very  smallest  sizes,  the  question  of  weight  is  out  of  all  propor- 
tion to  the  value  of  the  product.  Therefore  on  the  small  size  of  chain 
the  bill  gives  neither  revenue  nor  protection.  An  ad  valorem  duty 
of  25  per  cent  based  upon  American  valuation  would  not  exceed 
the  ad  valorem  duty  of  45  per  cent  on  foreign  valuation  under  normal 
conditions  prescribed  in  previous  tariffs. 

The  recommendation  is  therefore  made  that  section  392  of  the 
House  bill  be  amended  to  read  as  follows : 

Paragraph  392 :  Chain  and  chains  of  all  kind,  made  of  iron  or  steel,  not  less 
than  three-fourths  of  1  inch  in  diameter,  1  cent  per  pound ;  less  than  three- 
fourths  and  not  less  than  three-eighths  of  1  inch  in  diameter,  1J  cents  per 
pound;  less  than  three-eighths  and  not  less  than  five-sixteenths  of  1  inch  in 
diameter,  4  cents  per  pound;  sprocket  and  machine  chains,  of  iron  or  steel, 
and  parts  thereof,  30  per  cent  ad  valorem ;  anchor  or  stud-link  chain,  2  inches 
or  more  in  diameter,  1$  cents  per  pound ;  less  than  2  inches  in  diameter,  2 
cents  per  pound ;  but  no  chain  or  chains  of  any  description,  except  anchor  and 
stud-link  chain,  shall  pay  a  lesser  duty  than" 25  per  cent  ad  valorem:  Prorided, 
That  all  articles  manufactured  wholly  or  in  chief  value  of  chain  shall  not  pay 
a  lower  rate  of  duty  than  that  imposed  upon  the  chain  of  which  it  is  made,  or 
of  which  chain  is  the  component  material  of  chief  value. 

PARAGRAPH  337. — CARD  CLOTHING. 

WITNESS,  AND  INTEBEST  KEPRESENTED. 
FAVORING  LOWER  DUTIES: 

Mr.  Joseph  F.  Lockett,  representing  Leigh  &  Butler,  importers;  address, 
Boston,  Mass. 

Hearings :  Pages  1839-1851. 

Costs  and  selling  prices. — The  cost  to  the  foreign  manufacturer  to 
set  the  points  into  the  foundation  is  nearly  100  per  cent  more  than 
the  cost  to  the  American  manufacturer.  This  is  because  the  Ameri- 
can "  setting  machines  "  are  run  at  far  greater  speed  than  the  Eng- 
lish machines,  and  produce  a  much  larger  quantity  of  card  clothing 
per  hour.  Each  American  "  tender  "  operates  twice  as  many  setting 
machines  as  each  English  operator. 

A  unit  of  272  square  feet  of  No.  120  card  clothing  sells  in  the 
United  States  for  $691.15.  The  English  article,  landed  in  New  York 
less  duty,  costs  $456.94,  with  the  pound  sterling  at  $3.70.  The  duty 
under  the  Fordney  bill  would  be  $241.90,  making  a  total  cost  of 


Comparability. — American  cotton  mills  say  that  the  English  card 
clothing  is  a  much  superior  product,  and  with  a  prohibitive  tariff  the 
American  mills  could  not  compete  in  the  world's  markets,  especially 
in  the  finer  grades  of  cotton  goods. 

Rates  suggested. — The  rate  as  it  now  stands  in  the  Fordney  bill, 
based  upon  American  valuation,  would  be  absolutely  prohibitive  as 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  189 

to  card  clothing.  The  duty  of  $241.90  on  272  square  feet  of  card 
clothing  approximates  89  cents  per  square  foot,  an  advance  of  100 
per  cent  over  the  Payne-Aldrich  rate  of  45  cents  per  square  foot.  A 
duty  at  18  per  cent  on  American  value  of  $691.15  would  equal 
$124.40,  approximately  equivalent  to  45  cents  per  square  foot. 

A  rate  on  card  clothing  not  higher  than  40  cents  per  square  foot, 
or  18  per  cent  ad  valorem  based  upon  American  valuation,  is  strongly 
urged.  Either  of  these  would  provide  ample  protection  to  the  Ameri- 
can manufacturer. 

A  specific  duty  is  favored  as  it  would  help  the  Government  officials 
in  estimating  the  revenue,  lessen  the  likelihood  of  litigation,  and  be 
better  and  fairer  for  all  concerned. 

PARAGRAPH  339. — ALUMINUM  WARE. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  B.  C.  Ziegler,  representing  the  aluminum-ware  manufacturers  of  the 
United  States;  address,  West  Bend,  Ind. 

Hearings :  Pages  1851-1869. 

Costs^  and  selling  prices. — Manufacturing  costs  in  Germany  are 
approximately  65  to  70  per  cent  lower  than  in  the  United  States. 
The  labor  cost  of  producing  aluminum  ware  in  Germany  is  less  than 
one-eighth  of  the  labor  cost  of  producing  similar  ware  in  the  United 
States,  and  the  raw  material  used  costs  probably  one-half  or  less  in 
Germany  than  in  this  country.  In  America  an  aluminum  utensil 
costing  $1  to  produce  represents  50  cents  labor  and  50  cents  material 
cost,  and  for  a  similar  article  made  in  Germany  the  cost  represents 
6£  cents  for  labor  and  25  cents  for  material,  or  a  total  of  31^  cents. 

The  selling  prices  of  German  aluminum  ware  at  the  present  time 
are  artificially  cheap,  because  of  the  depreciated  value  of  the  Ger- 
man mark.  The  price  of  domestic  aluminum  ware  is  now  about  35 
per  cent  less  than  it  was  a  year  ago,  and  it  is  about  75  per  cent 
higher  than  the  prewar  price,  due  to  the  higher  cost  of  raw  material 
and  the  increased  cost  of  labor. 

Size  of  industry. — A  brief  was  presented  on  behalf  of  34  manu- 
facturers of  aluminum  ware  in  the  United  States.  Thirty-two  out 
of  the  34  manufacturers  are  completely  independent  of  the  Aluminum 
Co.  of  America,  which  is  a  minority  stockholder  in  one  of  the  34, 
leaving  but  1  company  out  of  the  34  which  might  be  considered 
controlled  or  dominated  by  the  Aluminum  Co.  of  America.  The 
manufacturers  of  aluminum  ware  herein  represented  are  independent 
and  competing  concerns. 

Rates  suggested. — Fifteen  cents  per  pound  and  45  per  cent  ad 
valorem  based  upon  American  valuation,  because  of  the  difference 
in  the  cost  abroad  and  here  as  compared  with  the  cost  before  the 
war.  The  following  wording  of  the  paragraph  is  proposed : 

Articles  or  wares  not  specially  provided  for  in  this  act,  composed  wholly  or 
in  part  of  aluminum,  and  whether  wholly  or  partly  manufactured,  15  cents  per 
pound  and  45  per  cent  ad  valorem. 

The  45  per  cent  ad  valorem  duty  recommended  is  the  one  that,  with 
the  exception  of  the  last  eight  years,  prevailed  almost  continuously 
since  1883,  and  the  suggested  additional  duty  of  15  cents  per  pound 


190  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

would  serve  to  prevent  undervaluation  and  also,  in  a  small  degree, 
supplement  the  ad  valorem  duty. 

Under  the  present  low  value  of  the  German  mark  the  cost  of  export 
by  Germany,  translated  into  American  dollars,  is  so  low  that  any 
duty  imposed  would  be  of  little  avail  in  preventing  the  flooding  of 
American  markets  unless  such  duty  were  based  upon  the  value  of 
the  goods  as  produced  in  this  country. 

Remarks. — As  previously  stated,  the  rates  asked  are  15  cents  spe- 
cific and  45  per  cent  ad  valorem.  Assuming  the  cost  of  production 
in  Germany  to  be  31  or  32  cents  a  pound,  and  adding  8  or  9  cents 
for  freight  to  the  United  States  and  a  fair  profit,  the  American 
,  importer  can  buy  this  article  in  New  York  for  about  40  cents. 
-  On  this  basis  the  following  indicates  the  result  of  applying  the 
rates  asked  for  with  American  valuation : 

Assume  that  a  pound  of  fabricated  aluminum  is  worth  $1,  and 
the  amount  paid  by  the  American  importer  40  cents.  Adding  45 
per  cent  as  ad  valorem  duty  and  15  cents  for  the  specific,  the  amount 
is  $1.  This  indicates  that  even  with  the  proposed  rates  the  imported 
German  article  would  slightly  undersell  the  American  article. 

If  the  German  article  can  be  bought  in  New  York  for  40  cents  a 
pound,  the  rates  are  adequate.  If  it  can  not,  the  rates  are  inadequate ; 
and  if  the  German  article  costs  more  than  40  cents,  the  tariff,  of 
course,  would  be  too  high.  But  in  that  case  there  is  no  danger  that 
the  American  consumer  will  have  to  pay  artificially  high  prices  for 
aluminum  ware,  for  three  reasons :  ( 1 )  The  actual  and  keen  competi- 
tion between  American  manufacturers  of  aluminum  ware ;  (2)  alumi- 
num ware  must  compete  in  the  United  States  with  enamel  ware; 
and  (3)  the  present  manufacturing  capacity  of  aluminum-ware  man- 
ufacturers is  three  or  four  times  the  consumption. 

In  a  supplemental  brief  dated  August  15,  1921,  reference  is  made 
to  the  brief  of  March  16,  1921  (cited  above),  with  a  request  that  the 
two  be  considered  together.  The  later  brief  sets  forth  the  argu- 
ments in  support  of  the  request  for  higher  duties,  pointing  out  that 
a  rate  of  28  per  cent  ad  valorem  is  inadequate  to  afford  any  measure 
of  protection  to  this  American  industry. 

PARAGRAPH  339. — ENAMEL  WARE. 

INTERESTS  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

American  manufacturers  of  enamel  ware.     (Brief.) 
REQUESTING  RECLASSIFICATION  : 

L.  D.  Calm  Co.,  importers,  New  York  City.     (Brief.) 

Hearings:  Pages  1869-1884. 

Witness :  American  manufacturers  of  enamel  ware. 

Costs  and  selling  prices. — The  table  below,  comparing  labor  costs 
in  Germany  and  the  United  States,  shows  that  the  cost  of  labor  in 
Germany  to-day  (1921),  basing  the  value  of  the  mark  at  2  cents 
American  money,  is  just  one-eighth  of  the  cost  for  the  same  work  in 
the  United  States. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 


191 


United 
States, 
per  hour 
(cents). 

Germany,  per  hour 

Cents. 

Marks. 

Machinists 

2? 

62 
1 

47£ 

9 
9 
8 
5t 
9 

? 

9 
5 

* 

1 

2 
4 
3 
2 
4 
2 
4 
3 

Spinners,  beaders,  small  punch  presses  

Riveters  and  welders  

Picklers 

Packers 

Common  labor  

•    57i 

7* 

3] 

On  the  basis  of  this  tabulation  of  comparative  wages  and  of  mate- 
rial costs  an  expert  of  the  Treasury  Department  figured  that  it  would 
require  an  ad  valorem  duty  of  767  per  cent  to  equalize  the  difference 
in  the  cost  of  production  of  enameled  ware  in  Germany  and  the 
United  States. 

The  ratio  of  labor  cost  to  the  total  cost  of  production  is  37£  per 
cent.  Adding  to  this  the  indirect  labor,  such  as  clerks,  foremen, 
office  force,  etc.,  it  is  seen  that  the  total  cost  of  labor  is  easily  50  per 
<?ent  of  the  total  cost  of  production. 

The  following  table  shows  comparative  American  and  German 
prices  of  enameled  kitchen  utensils: 


192 


is 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

8        o 
u$ 


ft 


a 


f  si 


?*! 


««      M.O      t> 


t-:  «  rf  w  •<!  us 


• 


im 


Soap 
Lip  s 


II ! 
\  \  i 


$&&  ° 


I  o 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  193 

Samples  of  Japanese  enameled  ware  are  being  shown,  and  orders 
solicited,  at  prices  below  the  cost  of  production  in  this  country. 

Size  of  industry. — Twenty-six  manufacturers  of  enameled  kitchen 
utensils,  employed  approximately  13,850  persons  in  1920,  and  nor- 
mally employ  approximately  18,000  persons. 

Rates  suggested. — The  following  recommendations  are  made: 

1.  The  enactment  of  an  antidumping  bill. 

2.  The  passage  of  a  measure  providing  for  the  establishment  of 
duties  on  American  valuation  in  American  dollars  at  the  port  of 
entry,  instead  of  the  fair  market  selling  prices  in  the  countries 
in  which  goods  are  produced. 

3.  That  if  goods  are  to  be  valued  at  United  States  fair  market 
selling  prices,  then  a  duty  of  5  cents  per  pound  and  40  per  cent 
ad  valorem  should  be  provided  on  the  enameled  ware  enumer- 
ated 

The  cost  of  export  by  Germany,  when  translated  into  American 
dollars,  is  so  low  that  any  duty  that  might  be  imposed  would  be  of 
little  avail  in  preventing  the  flooding  of  American  markets,  unless 
such  duty  were  to  be  based  upon  the  value  of  the  goods  as  produced 
in  this  country  rather  than  on  the  value  in  Germany  with  duty  figured 
on  the  depreciated  rate  of  exchange,  as  is  the  case  at  the  present  time. 

With  the  value  of  the  mark  less  than  10  per  cent  of  its  normal 
value,  the  present  duty  of  25  per  cent  is  in  reality  less  than  2J  per 
cent  when  translated  into  United  States  valuation. 

Witness:  L.  D.  Cahn  Co.,  importers,  New  York  City.  (Brief;  no 
appearance  at  hearings.) 

Comparability. — For  the  last  15  years  imports  of  enamel  ware 
have  declined,  partly  due  to  advancing  costs  in  Europe.  In  1913 
they  mounted  to  a  little  over  3  per  cent  of  the  estimated  domestic 
production.  The  cheaper  grades  of  European  enamel  ware  can  no 
longer  be  successfully  imported,  owing  to  the  lower  costs  of  steel  and 
coal  in  the  United  States,  which  make  it  possible  to  produce  enamel 
ware  cheaper  in  America  than  in  Europe.  At  present  only  the 
higher  grades  of  enamel  ware  are  imported,  chiefly  from  Czechoslo- 
vakia, and  these  are  sold  at  prices  ranging  from  33^  to  50  per  cent 
above  those  of  the  best  domestic  makes.  Landed  costs  of  Czecho- 
slovakian  ware  are  now  100  per  cent  above  pre-war. 

There  is  a  great  range  in  character,  labor  content,  and  value  in 
enamel  ware,  which  would  render  inequitable  any  specific  or  com- 
pound duties.  The  equivalent  ad  valorem  of  a  specific  duty  on 
different  sizes  of  the  same  article  shows  variations  of  from  40  to 
200  per  cent. 

It  Is  suggested  that  enamel  ware  and  aluminum  ware,  covered  by 
the  same  paragraph  in  the  bill,  be  treated  separately,  as  they  are 
made  by  entirely  different  processes  and  have  nothing  in  common 
except  their  uses. 

PARAGRAPH  340. — SAWS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  H.  C.  Atkins,  representing  saw  manufacturers ;  address,  Indianapolis, 

Ind. 
E.  C.  Atkins  &  Co.,  Indianapolis,  Ind.,  Henry  Disston  &  Sons,  Philadelphia, 

Pa.,  the  Simonds  Manufacturing  Co.,  Fitchburg,  Mass.     (Joint  brief.) 


194  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

Hearings:  Pages  1885-1888. 

Costs  and  selling  prices. — The  wages  paid  here  and  abroad  are  as 
follows :  Sawsmiths,  from  65  to  80  cents  an  hour ;  in  Europe,  31£ 
cents.  Machinists  and  machine  operators,  from  55  to  80  cents;  in 
Europe,  28  cents.  Ordinary  labor  35  cents  per  hour ;  in  Europe  19£ 
cents. 

A  band  saw  costing  85  cents  per  foot  to  produce  in  the  United 
States  is  sold  in  France  at  45  cents  per  foot ;  with  duty  added  it  would 
sell  for  61  cents  per  foot  in  the  United  States. 

The  American  cost  and  the  selling  price  (with  duty  paid)  on  French 

f;>ods  are  as  follows:  American  hacksaw  blades,  $7.90  per  gross; 
rench,  $4.45.    American  narrow  band  saws,  $1.51 ;  French,  88  cents. 
Rates  suggested. — On  band  saws  35  per  cent  ad  valorem  and  on 
other  saws  25  per  cent  ad  valorem ;  on  steel  strips,  tempered  only  or 
tempered  and  polished,  a  specific  duty  of  10  cents  per  pound  and  20 
per  cent  ad  valorem. 

In  the  past,  band-saw  steel  has  been  imported  into  this  country  and 
sold  directly  to  the  users  of  sawmills  for  their  filers  or  the  employees 
in  their  filing  room  to  make  up  into  finished  saws ;  this  put  a  -large 
amount  of  equipment  out  of  commission  in  the  saw  factories. 

Where  the  rates  of  duty  are  intended  to  cover  band-saw  steel  there 
should  be  specific  reference  to  steel  strips  in  coils  or  otherwise,  if 
tempered  or  tempered  and  polished,  carrying  a  specific  duty  of  10 
cents  per  pound  and  20  per  cent  ad  valorem. 

Witnesses :  E.  C.  Atkins  &  Co.,  Indianapolis,  Ind. ;  Henry  Disston 
&  Sons.  Philadelphia,  Pa. ;  and  the  Simonds  Manufacturing  Co., 
Fitchburg,  Mass.  (Joint  brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — E.  C.  Atkins  &  Co.  are  able  to  manufac- 
ture in  their  Canadian  factory,  paying  Canadian  dollars  for  labor, 
and  sell  the  product  in  the  United  States  at  United  States  prices 
in  American  dollars  at  about  even  figures,  the  duty  being  offset  by 
the  exchange  rate. 

In  making  the  following  comparisons  between  domestic  costs  and 
foreign  selling  prices  the  domestic  load  is  figured  as  it  was.  not  as 
it  is.    For  example : 
4-inch  band  saw — 

Domestic  cost,  per  foot $0.  85 

Peugeot  Freres,  France,  sells  at,  per  foot $0.  45 

Plus  15  per  cent  American  valuation,  per  foot .  16 

.61 

Difference  per  foot .  24 


Hacksaw  blades — 

Domestic,  12  by  J  by  22-inch  gauge,  cost,  per  gross 7.  90 

Ritsche  &  Co.,  Frankfort,  sell  at  3.60  francs  per  dozen,  or 

per  gross 3.  24 

Plus  15  per  cent  per  gross 1.  21 


4.45 


A  difference  per  gross  of 3.  45 


Narrow-band  saws,  1-inch  wide — 

Domestic,  cost  per  meter .291 

Peugeot's  price  per  meter .  18 

Plus  15  per  cent,  American  valuation .  038 

Peugeot  total,  duty  paid .218 


Difference .0745 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  195 

Comparing  selling  prices  on  three  sizes  of  narrow  band  saws,  f ,  1, 
and  2  inch,  the  domestic  extreme  price  for  3  meters  (1  meter  of  each 
size)  is  $1.15  compared  to  Peugeot's  price  of  65  cents.  Even  with 
15  per  cent  American  valuation  duty  added,  the  foreigner's  price  is 
only  88  cents. 

Crosscut  saws  made  in  Sweden  are  available  at  a  price  of  $1.94 
for  a  5-foot  common  tooth  saw.  Adding  15  per  cent  duty  at  Ameri- 
can valuation  on  the  domestic  price  of  $2.80,  the  Swedish  saw  is 
bought  for  $2.36  or,  with  25  per  cent  duty,  for  $2.64. 

Foreign  selling  prices  on  circular  saws  vary  from  $1.66  per  unit 
in  France  to  $2.35  in  Sweden,  as  compared  with  the  domestic  extreme 
selling  price  of  $3.20. 

Size  of  industry. — The  signers  of  the  brief  represented  an  industry 
with  an  invested  capital  of  $20,000,000  to  $25,000,000,  employing 
from  6,000  to  7,000  workers,  exclusive  of  office  and  sales  employees, 
and  producing  an  output  valued  at  from  $25,000,000  to  $30,000,000. 

Rates  suggested. — All  saws  to  carry  an  ad  valorem  rate,  based 
upon  American  valuation,  of  25  per  cent,  except  band  saws,  which 
should  carry  at  least  35  per  cent  ad  valorem.  Steel  strips,  tempered, 
or  tempered  and  polished  only,  should  carry  a  specific  duty  of  10 
cents  per  pound  and  20  per  cent  ad  valorem,  because  they  are  sold 
to  be  toothed  and  finished,  to  the  detriment  of  the  finished  band-saw 
industry. 

Remarks. — The  wage  situation  is  accurately  reflected  in  foreign 
competition.  For  example,  wages  in  this  industry,  here  and  abroad, 
compare  as  follows: 

[Cents  per  hour.] 


Type  of  labor. 

Wages  in 
the  United 
States. 

Wages  in 
Europe. 

Saw  smiths                                             .         .             

65-80 

314 

Machinists 

55-80 

28 

35 

19J 

The  European  wages  cited  are  not  the  low  wages  of  Germany,  but 
are  wages  actually  paid  in  France,  figured  on  a  basis  of  a  franc  at 
8  cents. 

PARAGRAPH  343. — NEEDLES. 

WITNESSES. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Boye  Needle  Co.,  Chicago,  111.     (Brief.) 
Potter  &  Snell,  Deep  Pdver.  Conn.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Durbrow  &  Hearne,  New  York,  N.  Y.     (Brief.) 

J.  A.  Coates  &  Sons  (Ltd.),  East.  Orange,  N.  J.     (Brief.) 

Witness:  The  Boye  Needle  Co.,  Chicago,  111.  (Brief;  no  appear- 
ance at  hearings.) 

Costs  and  selling  prices. — The  company's  manufacturing  cost  for 
1.000  crochet  needles  is  $22.01,  90  per  cent  of  which  is  made  up  of 
labor,  10  per  cent  of  material. 


196  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

The  average  market  price  of  crochet  needles  in  Europe  is  "  $10 
per  1,000,  United  States  funds."  The  average  price  to  the  American 
jobber  is  $3.25  per  gross— $22.56  per  1,000.  The  duty  provided  for 
in  H.  E.  7456  would  therefore  bring  the  cost  of  crochet  needles  to 
the  American  importer  as  follows: 

Per  thousand. 

Crochet  needles $10.  00 

Estimated  freight,  consular,  etc .75 

Duty,  25  per  cent  of  American  price  ($3.25  per  gross) 5.64 

Special   duty 1. 15 

Total 17.54 

The  difference  between  the  company's  manufacturing  cost  and  the 
importer's  cost  under  H.  E.  7456  would  amount,  therefore,  to  $4.47. 

Size  of  industry. — The  manufacture  of  crochet  needles  is  a  new  in- 
dustry in  this  country,  having  been  started  during  the  war.     The 
companv  knows  of  only  three  other  manufacturers  in  the  United 
States.  " 
Rates  suggested. — An  ad  valorem  rate  of  60  per  cent. 

Witness:  Potter  &  Snell,  manufacturers  of  bright  wire  goods, 
Deep  Elver,  Conn.  (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  cost  of  a  steel  crochet  hook  lies 
almost  entirely  in  the  labor  item,  representing  about  90  per  cent  of 
the  total.  Steel  crochet  hooks  are  sold  almost  entirely  through  the 
5  and  10  cent  stores  and  department  stores.  The  selling  price  is  thus 
fixed  at  5  cents  for  the  cheaper  and  10  cents  for  the  better  grades. 
It  makes  no  difference  how  cheap  these  houses  buy  the  goods ;  their 
selling  price  remains  the  same  and  extra  profit  is  gained  by  buying 
the  German  goods. 

Size  of  industry. — The  principal  part  of  the  firm's  business  is  the 
manufacture  of  steel  crochet  hooks ;  about  $150,000  is  invested  in  the 
business. 

Rates  suggested. — Steel  crochet  hooks  should  be  given  a  specific 
duty  of  <$1.15  per  1,000  plus  an  ad  valorem  duty  of  35  per  cent.  The 
higher  duty  will  not  increase  the  selling  price  to  the  consumer,  but 
the  seller's  profit  will  be  less  and  American  manufacturers  will  be 
able  to  meet  German  competition  and  make  a  fair  profit. 

Remarks. — Steel  crochet  hooks  are  more  of  a  luxury  than  a  ne- 
cessity and  should  be  taxed  accordingly.  They  are  used  for  cro- 
cheting lace  and  other  articles  of  personal  adornment,  and  not  for 
making  the  necessities  of  life.  H.  E.  7456  provides  a  duty  of  $1.15 
per  1,000  and  25  per  centum  ad  valorem.  Although  skilled  labor  is 
required  in  their  manufacture,  it  is  noted  that,  in  the  same  para- 
graph of  the  proposed  law,  tape  and  knitting  needles,  and  in  para- 
graph 344,  fishhooks — articles  requiring  no  skilled  labor  in  their 
manufacture  and  certainly  no  more  of  a  luxury  than  steel  crochet 
hooks — are  given  higher  rates  of  duty.  Also,"  in  paragraph  372, 
lace-making  machines  are  given  an  ad  valorem  duty  of  35  per  cent. 
Crochet  hooks  should  not  be  classified  as  "  crochet  needles  " ;  they  are 
not  needles,  but  hooks. 

Witness:  Durbrow  &  Hearne,  manufacturers  and  importers,  New 
York  City.  (Brief;  no  appearance  at  hearings.) 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  197 

Costs  and  selling  prices. — Spring  beard  needles  of  American 
manufacture  sell  in  this  country  to-day  for  about  $3.50  per  1,000. 
Needles  for  hand-embroidering  machines,  which  are  not  made  in 
this  country,  cost  about  $1.20  per  1,000.  There  is  a  great  deal  of 
variation  in  the  cost  of  sewing-machine  needles.  Ordinary  latch 
needles  are  estimated  to  be  worth  not  over  $8  per  1,000. 

Rates  suggested. — Having  regard  to  the  selling  prices  cited  above, 
the  brief  points  out  that  the  duties  under  H.  R.  7456,  converted  into 
ad  valorem,  would  range  from  55  to  125  per  cent.  Attention  is 
called  to  the  latter  part  of  the  paragraph,  referring  to  needle  cases 
or  needle  books.  There  are  bona  fide  needle  cases,  in  which  the 
value  of  the  case  far  transcends  the  value  of  the  contained  hand- 
sewing  needles,  and  a  duty  on  such  an  article  is  highly  proper.  So 
long,  however,  as  hand-sewing  needles  are  duty  free  it  is  illogical 
to  place  a  duty  on  the  needle  case  where  the  value  of  the  needle  case, 
in  many  instances,  is  no  greater  than  the  value  of  the  ordinary  wrap- 
pings in  which  the  hand-sewing  needles  are  put  up.  In  other  words, 
where  a  needle  case  is  substituted  for  the  ordinary  envelopes  and 
wrappings,  there  should  be  no  duty  on  the  goods. 

Witness:  J.  A.  Coates  &  Sons  (Ltd.),  manufacturers  of  needles, 
etc.,  East  Orange,  N.  J.  (Brief;  no  appearance  at  hearings.) 

Size  of  industry. — Thirty-five  or  forty  years  ago  there  were  about 
a  dozen  manufactories  of  sewing-machine  needles  in  America.  Fol- 
lowing their  absorption  by  the  Torrington  Co.,  of  Torrington,  Conn., 
all  were  closed  down  but  two,  the  "  National "  at  Springfield,  Mass., 
and  the  "  Excelsior  "  at  Torrington,  Conn. 

There  are  only  three  other  manufacturers  of  sewing-machine 
needles  in  America — the  Singer  Sewing  Machine  ^Co.,  Elizabeth, 
N.  J. :  the  National  Sewing  Machine  Co.,  Belvidere,  111.;  and  the 
New  Home  Sewing  Machine  Co.,  Orange,  Mass. 

Although  there  are  dozens  of  others,  including  the  Coates  Co., 
who  claim  to  be  manufacturers,  not  one  sewing-machine  needle  is 
made  in  the  United  States  outside  of  these  four  plants,  and  the 
latter  three  make  them  as  a  minor  detail  of  their  business  as  sewing 
machine  makers. 

Remarks. — Mr.  John  Alyord,  practically  the  sole  owner  of  the 
Torrington  Co.,  is  a  multimillionaire  from  the  monopoly  that  he  has 
enjoyed  in  the  manufacture  of  sewing-machine  needles.  The  ques- 
tion arises:  Is  it  fair  to  add  to  these  millions  at  the  expense  of  the 
few  importers  of  needles  and  the  consumer? 

PARAGRAPH  349. — METAL  TROUSER  BUTTONS,  ETC. 

WITNESS,   AND  INTEBEST  REPRESENTED.  > 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Universal  Button  Fastening  &  Button  Co.,  Detroit,  Mich.     (Brief;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — "Patent  buttons"  are  buttons  which 
come  in  two  parts — the  button  proper  and  the  tack  or  staple,  both  of 
metal.  A  "  patent  button  "  in  general  demand  is  that  described  as 
the  27-line,  close-top,  plain  brass  button.  This  is  one  of  the  most 
popular  buttons  for  overalls  and  costs  the  company  $5.15  per  gross. 
Its  net  selling  price  is  $5.24. 
77134—22 14 


198  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

Size  of  industry. — Practically  all  "patent  buttons"  in  the  coun- 
try are  manufactured  by  the  following  companies:  Scovill  Manu- 
facturing Co.,  Waterbury,  Conn. ;  Universal  Button  Fastening  & 
Button  Co.,  Detroit,  Mich.;  Patent  Button  Co.,  Waterbury,  Conn.; 
C.  Radcliffe  &  Sons'  Co.,  Newark,  N.  J. 

The  Universal  Button  Fastening  &  Button  Co.  has  approximately 
$1,000,000  invested  in  special  machinery  for  making  "  patent  but- 
tons "  and  button  fasteners  for  attaching. '  This  machinery  can  be 
used  only  in  this  business,  and  if  the  business  is  destroyed  it  is  a 
total  loss. 

Comparability. — It  is  obviously  impossible  to  obtain  exact  figures 
as  to  costs  in  Germany.  Where  comparisons  could  be  made  it  is 
found  that  the  cost  of  labor  in  Germany  is  about  9  per  cent  of  that 
in  the  United  States.  The  German  can  make  the  above-mentioned 
button  for  $1.59 — roughly,  a  little  more  than  one-third  of  the  Amer- 
ican cost. 

Rates  suggested. — It  is  urged  that  paragraph  349  be  amended  to 
read  as  follows: 

Buttons  of  metal  and  part  metal,  three-fourths  of  1  cent  per  line  per 
gross ;  and  in  addition  thereto  20  per  cent  ad  valorem ;  metal  buttons,  embossed 
with  a  design,  device,  pattern,  or  lettering,  35  per  cent  ad  valorem  or  the  rate 
for  plain  metal  and  part-metal  buttons,  whichever  is  higher:  Provided,  That 
the  term  "  line,"  as  used  in  this  paragraph,  shall  mean  the  line  button  measure 
of  one-fortieth  of  1  inch. 

Remarks. — There  is  no  logical  reason  for  distinguishing  between 
"  metal  trouser  buttons "  and  "  buttons  of  metal  not  specially  pro- 
vided for."  The  Universal  Button  Fastening  &  Button  Co.'s  chief 
button  is  known  as  an  overall  button,  and  is  used  mainly  on  overalls, 
but  it  is  also  used  on  trousers,  coats,  and  underwear,  and  on  rain- 
coats. During  the  war  it  was  used  extensively  on  shelter  tents. 

It  is  believed  that  a  button  similar  to  those  made  by  the  Universal 
Button  Fastening  &  Button  Co.  would  properly  be  called  an  "  over- 
all "  button  and  pay  a  duty  of  three-fourths  of  1  cent  per  line  per 
gross  under  the  bill  as  now  drawn  as  a  "  button  of  metal  not  specially 
provided  for."  But  a  foreign  importer  could  call  it  a  "  trouser  "  but- 
ton and  claim  a  duty  of  one-fourth  of  1  cent  per  line  per  gross 
if  it  was  a  steel  button  or  one-twelfth  of  1  cent  per  line  per  gross 
if  it  was  a  metal  button,  not  a  steel  or  nickel  bar  button.  There  are 
apparently  no  customs  decisions  on  this  doubtful  point. 

It  is  therefore  urged  that  all  attempted  distinction  in  metal  but- 
tons be  done  away  with  and  that  the  same  tariff  be  made  applicable 
to  all  metal  buttons.  The  pending  bill  provides  for  a  duty  of  35 
per  cent  ad  valorem  on  "metal  buttons  embossed  with  a  design,, 
device,  pattern,  or  lettering."  In  some  cases  the  duty  of  three- 
fourths  of  1  cent  per  line  per  gross  plus  20  per  cent  ad  valorem T 
which  is  provided  for  plain  buttons  in  the  amendment  herein  urged, 
will  probably  be  more  than  35  per  cent  ad  valorem.  Obviously  an 
importer  could  have  the  duty  reduced  by  embossing  his  buttons. 
This  would  be  particularly  profitable,  as  the  embossed  button  is  the 
more  desirable  article.  To  prevent  such  an  evasion  the  amendment 
makes  the  rate  for  embossed  buttons  35  per  cent  ad  valorem  "  or  the 
rate  for  plain  metal  and  part-metal  buttons,  whichever  is  higher  " 


DIGEST   OF   TARIFF   HEARINGS,   H.   E.   7456.  199 

PARAGRAPH  349. — METAL  BUTTONS. 

WITNESS,  AND  INTEKEST  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.    James    Turner,    Detroit,    Mich.,    representing    the    Universal    Button 
Fastening  Co.  and  three  other  concerns. 

Hearings :  Pages  5336-5343. 

Costs  and  selling  pnces. — The  average  wage  per  hour  for  machinists 
in  Germany  in  iron  and  steel  and  metal  working  industries,  February, 
1920.  was  3.52  marks;  with  a«mark  value  of  $0.0118.  These  wages 
were,  in  JJnited  States  currency,  4.15  cents.  Wages  paid  machinists 
of  the  Universal  Button  Fastening  &  Button  Co.,  45  cents;  skilled 
mechanics  and  tool  makers  are  paid  75  to  95  cents. 

A  "  patent  button  "  in  general  is  that  described  as  the  27-line  close- 
top  plain  brass  button — one  of  the  most  popular  for  overalls.  This 
button  cost  the  Universal  Button  Fastening  &  Button  Co.  $5.15  per 
great  gross.  Selling  price,  net,  $5.24  a  great  gross. 

Effect  of  duty  asked  for :  Overall  button,  27-line,  American  valua- 
tion, $5.25 : 

Three-fourths  of  1  cent  per  line  per  gross,  or  9  cents  per  line  per  great 

gross $2.43 

20  per  cent  ad  valorem,  American  valuation  ($5.24)  __.  .     1.05 


Total  duty 3.  48 

Differential    (cost  $5.15— $3.48) 1.67 

Less  freight  rate  to  America__.  .  08 


Differential  less  freight  rate 1.  59 

It  will  be  seen,  therefore,  that  a  German  who  can  make  this  button 
for  $1.59,  or  a  little  more  than  one-third  of  the  American  cost,  can 
undersell.  The  German  cost  of  labor  was  only  9  per  cent,  or  one- 
eleventh,  of  that  in  the  United  States  when  the  mark  was  at  more 
than  double  its  present  value. 

Rates  suggested. — Buttons  of  metal  and  part  metal,  three-fourths 
of  1  cent  per  line  per  gross;  and  in  addition  thereto,  20  per  cent  ad 
valorem;  metal  buttons  embossed  with  a  design,  device,  pattern,  or 
lettering,  35  per  cent  ad  valorem,  or  the  rate  for  plain  metal  and  part 
metal  buttons,  whichever  is  higher,  provided  that  the  term  "  line  " 
as  used  in  this  paragraph  shall'mean  the  line  button  measure  of  one- 
fortieth  of  1  inch. 

Remarks. — There  is  no  logical  reason  for  distinguishing  in  the 
tariff  between  "  metal  trouser  buttons  "  and  "  buttons  of  metal  not 
specialty  provided  for."  The  witness's  company  is  uncertain  whether 
imported  buttons  similar  to  those  (overall  buttons)  it  produces 
would  be  classed  as  "  metal  trouser  buttons  "  or  as  "  buttons  of  metal 
not  specially  provided  for."  There  are  apparently  no  customs  de- 
cisions on  this  doubtful  point.  Imports  of  metal  trouser  buttons  have 
been  negligible.  The  distinction  in  classification  between  metal 
trouser  buttons  and  metal  buttons  n.  s.  p.  f .  was  originally  put  in  the 
tariff  25  years  ago  to  reach  a  class  of  highly  polished  steel  buttons 
then  in  vogue  but  now  practically  obsolete.  An  amendment  is  pro- 
posed with  respect  to  embossed  metal  buttons.  Instead  of  simply 
providing  for  an  ad  valorem  rate  of  35  per  cent,  the  proposed  amend- 


200  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

merit  adds  "  or  the  rate  for  plain  metal  or  part  metal  buttons,  which- 
ever is  higher."  In  some  cases  the  duty  of  three-fourths  of  1  cent  per 
line  per  gross,  plus  20  per  cent  ad  valorem,  provided  for  plain  but- 
tons will  be  more  than  35  per  cent.  As  the  paragraph  now  stands,  an 
importer  could,  in  some  instances,  bring  in  embossed  buttons,  which 
are  the  most  desirable  ones,  at  a  lower  rate  of  duty  than  that  imposed 
on  plain  ones.  German  manufacturers  are  known  to  be  in  possession 
of  complete  button  machinery. 

In  a  brief  dated  December  1,  1921,  the  witness's  company  distin- 
guishes "  patent  buttons  "  as  those  coming  in  in  two  parts,  the  button 
proper  and  the  back  or  staple,  both  of  metal.  The  brief  recapitulates 
the  leading  features  of  the  oral  testimony. 

PARAGRAPH  351. — PENS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.   F.   T.   Blakeman,   representing  the  Spencerian   Peri   Co.   and   Joseph 
Gillott  &  Sons  (importers)  ;  address,  New  York  City. 

Hearings:  Pages  1889-1892. 

Costs  and  selling  prices. — The  cost  of  English  labor  in  this  indus- 
try is  66  per  cent  of  the  total  cost,  although  it  has  been  asserted,  in 
recent  Ways  and  Means  hearings,  that  it  is  only  30  per  cent.  The 
prices  of  the  Spencerian  Pen  Co.  and  Joseph  Gillott  &  Sons  to  the 
trade  are,  respectively,  46  per  cent  and  57  per  cent  higher  than  the 
lowest  price  quoted  to  the  trade  by  domestic  manufacturers,  and  the 
prices  quoted  by  the  Spencerian  Pen  Co.  on  Federal  and  school 
contracts  are  66  per  cent  higher  than  the  domestic  quotations.  The 
prices  quoted  by  domestic  manufacturers  on  export  goods  were  from 
25  to  33^  per  cent  less  than  the  prices  offered  to  the  home  trade.  The 
purchasing  agent  for  the  Government  of  Porto  Rico  has  accepted  the 
bid  of  a  leading  domestic  pen  manufacturer  of  43  cents  per  gross 
on  a  school-supply  proposal.  The  lowest  net  trade  prices  per  gross 
are:  Domestic,  $0.65;  Spencerian,  $0.95;  Gillott,  $1.02.  The  school 
prices  per  gross  are:  Domestic,  $0.57;  Spencerian,  $0.95;  Gillott, 
$0.65.  The  Government  prices  per  gross  are :  Domestic,  $0.56 ;  Spen- 
cerian, $0.95. 

Size  of  industry. — Last  year,  of  2,950,000  gross  manufactured  in 
the  United  States,  450,000  gross  were  exported  as  against  an  impor- 
tation of  775,000  gross. 

Rates  suggested. — That  the  present  specific  duty  of  8  cents  a  gross 
be  allowed  to  remain,  the  volume  of  imported  steel  pens  being  very 
small  in  comparison  with  the  total  number  of  pens  made  in  this 
country.  Under  the  present  duty  American  manufacturers  can  un- 
dersell the  imported  article  in  the  United  States  and  can  afford  to 
offer  their  products  abroad  at  much  below  the  domestic  price.  It 
is  evident,  therefore,  that  they  are  not  in  danger  of  competition  with 
foreign-made  steel  pens. 

The  proposed  increase  of  4  cents  would  work  an  undue  hardship 
on  the  importers  of  steel  pens,  and  especially  on  the  Spencerian  Pen 
Co.,  who  import  67  per  cent  of  the  foreign  pens  used  in  this  country. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  201 

This  would  result  in  the  importation  of  fewer  pens,  with  a  constant 
decrease  in  revenue  to  the  Government.  Furthermore,  owing  to  the 
high  price  of  imported  pens,  the  interests  of  the  domestic  pen  manu- 
facturers are  not  jeopardized  by  present  conditions. 

PARAGRAPH  352;  ALSO  PARAGRAPH  1450  OF  SCHEDULE  14. — METAL 
PENCILS  AND  LEAD  REFILLS. 

WITNESS,  AND  INTEREST  REPRESENTED. 
FAVORING   PROPOSED  OR  HIGHER  DUTIES: 

Mr.   C.   J.   Frechette,    representing   the  Wahl   Co.,   as   secretary-assistant 
treasurer. 

Hearings:  Pages  1892-1901. 

Costs  and  selling  prices. — The  style  of  pencil  retailing  at  a  dollar 
is  sold  to  the  dealer  at  60  cents  and  costs  a  little  over  57  cents  to  make. 
The  labor  cost  is  approximately  34  cents,  and  the  material  cost  23 
cents.  The  German  total  cost  is  estimated  at  28.93  cents. 

The  style  retailing  at  $3  is  sold  to  the  dealer  at  $1.80  and  costs 
$1.37  to  make.  A  similar  pencil  can  be  manufactured  by  German 
concerns  at  an  estimated  cost  of  69.63  cents. 

Size  of  industry. — On  January  1,  1921,  the  company's  investment 
in  land,  buildings,  machinery,  tools,  and  equipment  was  $1,513,781. 
The  factory  contains  6  acres  of  floor  space;  the  manufacturing  ca- 
pacity is  40,000  pencils  and  10,000  fountain  pens  per  day,  and  when 
the  factory  is  run  at  full  capacity  approximately  2,000  operators  are 
employed.  The  net  sales  for  1920  amounted  to  $7,382,850,  and  for 
the  first  six  months  of  1921  to  $2,413,773. 

To-day  there  are  over  10,000,000  of  these  American  pencils  in  use 
throughout  the  world,  representing  sales  aggregating  approximately 
$12,000,000  at  wholesale,  or  about  $20,000,000  at  retail  prices.  In 
addition,  the  lead-refill  business,  up  to  June  30,  1921,  exceeded 
$900,000  at  wholesale  prices,  equivalent  to  over  $1,500,000  at  retail 
prices. 

Comparability. — No  definite  information  is  given,  but  the  inference 
is  that  the  American  and  the  German  product  are  comparable. 

Rates  suggested. — A  duty  of  50  per  cent  ad  valorem  on  American 
valuation  on  both  pencils  and  lead  for  refilling. 

PARAGRAPH  354. — POCKETKNIVES. 
WITNESS,  AND  INTERESTS  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.   Charles   F.   Rockwell,    representing   American   pocketknife   manufac- 
turers; address,  Meriden,  Conn. 

Hearings:  Pages  1901-1906. 

Costs  and  selling  prices. — A  German  cutlery  operative  receives  in 
the  American  equivalent  $3.75  per  week  as  contrasted  with  $30  per 
week  for  the  corresponding  American  workman.  Eighty  per  cent 
of  the  cost  of  manufacture  is  labor. 

The  price  of  a  German  stag  knife  is  $4.78,  while  the  price  of  a 
comparable  American  knife  is  $12.25.  In  this  instance  the  German 
is  the  better  knife. 

Size  of  industry. — Witness  represents  30  American  pocketknife 
manufacturers,  who  employed  6,200  men  a  year  ago  and  at  the  present 


202  DIGEST   OF   TARIFF   HEAEIXGS,   H.   B.   7456. 

time  employ  less  than  1,800  men;  at  leasfc  600  or  800  of  these  are 
working  on  short  time. 

Rates  suggested. — The  rates  as  provided  in  paragraph  354  to  be 
continued.  They  do  not  equalize  the  increased  difference  between 
labor  in  this  country  and  abroad,* particularly  as  over  80  per  cent 
of  foreign  competition  is  with  Germany. 

PARAGRAPHS  354,  355,  357,  AND  358.— OTHER  CUTLERY. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OH  HIGHER  DUTIES  : 

Mr.   J.  A.   Chrestensen,  representing  manufacturers  of  cutlery;   address, 
Franklinville,  N.  Y. 

FAVORING  LOWER  DUTIES: 

Mr.  Robert  N.  Kastor,  representing  the  Cutlery  Importers'  Association. 

Hearings :  Pages  1929-1936. 

Witness:  Mr.  J.  A.  Chrestensen,  representing  manufacturers  of 
cutlery. 

Costs  and  selling  prices. — The  following  examples  illustrate  im- 
ported values  as  compared  with  American  selling  prices:  A  9-inch 
cook  knife  costs  in  Germany  $3.07  per  dozen.  A  comparable  knife 
of  American  make  sells  for  $11  per  dozen.  The  duty  on  the  foreign 
knife  would  be  $4.81,  and  5  per  cent  for  freight  and  insurance  would 
be  15  cents,  making  a  total  landed  cost  of  $8.03  per  dozen.  This  for- 
eign knife  was  sold  to  the  firm's  customers  upon  their  requisition  for 
$20  per  dozen. 

An  8-inch  butcher  knife  costs  in  Germany  $1.73  per  dozen.  A  com- 
parable knife  of  American  make  sells  for  $6  per  dozen.  The  duty 
on  the  foreign  knife  would  be  $3.06,  and  5  per  cent  for  freight  and  in- 
surance would  be  9  cents,  making  a  total  landed  cost  of  $4.88.  This 
foreign  knife  was  sold  to  the  firm's  customers  under  an  invoice  at 
$12  per  dozen. 

A  10-inch  butcher  knife  costs  in  Germany  $2.37  per  dozen.  A  com- 
parable knife  of  American  make  sells  for  $8.37  per  dozen.  The  duty 
on  the  foreign  knife  would  be  $3.89,  and  5  per  cent  for  freight  and 
insurance  would  be  12  cents,  making  a  total  landed  cost  of  $6.38. 

This  same  10-inch  butcher  knife  can  be  imported  to-day  under  the 
Underwood  bill,  including  the  5  per  cent  for  freight  and  insurance, 
for  $3.08,  as  compared  with  the  price  of  the  American  article  of  $8.37. 

Rates  suggested. — The  schedules  already  in  this  paragraph  (355) 
are  recommended. 

Hearings :  Pages  1907-1929. 

Witness:  Mr.  R.  N.  Kastor,  representing  the  Cutlery  Importers' 
Association. 

Costs  and  selling  prices. — The  average  wage  paid  in  the  United 
States  is  $19  per  week,  anil  the  average  wage  paid  in  Germany  for 
the  same  kind  of  labor  is  $4,  $5,  or  $6  per  week. 

The  following  examples  will  illustrate  the  operation  of  the  Amer- 
ican valuation  plan :  A  boy's  one-bladed  knife  costs  33  cents  per  dozen 
in  Germany,  and  the  American  knife  sells  for  $1  per  dozen.  The 
duty  on  this  knife  under  the  Fordney  bill  would  be  90  cents  per 
dozen,  making  a  total  cost  of  $1.23  per  dozen,  exclusive  of  ocean 
freight,  insurance,  expense  of  any  kind,  and  profit  to  the  importer. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 


203 


A  54-inch  scissors  costs  85  cents  per  dozen  in  Germany,  and  the 
American  scissors  sells  for  $2.27  per  dozen.  The  duty  on  this  scissors 
would  be  $3.19,  making  a  total  cost  of  $4.04  per  dozen,  exclusive  of 
ocean  freight,  insurance,  expense  of  any  kind,  and  profit  to  the  im- 
porter. 

A  No.  525,  five-eighths  square-point  razor  costs  $1.17  per  dozen  in 
Germany,  and  the  American  razor  sells  for  $3.25  per  dozen.  The 
duty  on  this  razor  would  be  $2.90  per  dozen,  making  a  total  cost  of 
$4.07  per  dozen,  exclusive  of  ocean  freight,  insurance,  expense  of  any 
kind,  and  profit  to  the  importer. 

A  pocketknife  (No.  6066,  a  premium  stock  knife)  costs'  $4.78  per 
dozen  in  Germany,  and  the  American  pocketknife  sells  for  $12  per 
dozen.1  The  duty  on  this  knife  would  be  $4.90  per  dozen,  making  a 
total  cost  of  $9.68  per  dozen.  That  knife  costs  $7.91  in  the  American 
factory,  and  the  European  knife  costs  the  importer  to  land,  without 
insurance,  freight,  or  expense  of  any  kind,  $9.68. 

The  following  table  shows  the  cost  to  the  importer  of  foreign-made 
cutlery  and  the  percentage  duty  on  foreign  costs: 


Foreign 

Percent- 

Articles. 

cost  in 
United 
States 

Dome?ti< 
value. 

Duty. 

Cost  to 
importer 

age  duty 
on 

foreign 

currency 

costs. 

Pocketknives: 
404 

$0  33 

SI  00 

tO  90 

$1  23 

272 

614  DW  

.60 

2.75 

2.02 

2.62 

337 

N  2000  St 

.80 

3.60 

3.48 

4  28 

435 

6042  

2.33 

7.00 

4.50 

6.83 

193 

6066  

4.78 

1Z25 

7.27 

12.05 

152 

Scissors: 

9338  oWnch 

.85 

2.27 

3  19 

4  04 

373 

8764,  Si-inch  

1.35 

3.70 

3.69 

5.04 

274 

1.535.  3}-inch. 

3.23 

5.75 

4.13 

7.36 

128 

2610  7i-inch 

5.13 

8.66 

5.33 

10  46 

104 

Razors: 

520,  5/8  S.  P  

1.17 

3.25 

2.90 

4.07 

247 

101,  5/8  S.  P.    .. 

6.23 

11.70 

5.91 

12.14 

95 

Table  cutlerv: 

2.79 

3.50 

3.14 

5.93 

113 

55  stae  C.  set  .  .  . 

23.35 

50.40 

23.40 

46.75 

100 

The  following  table  illustrates  the  difference  in  duty  when  ap- 
plying the  Fordney  rates  with  American  valuation  and  the  same 
rates  with  foreign  valuation : 


Article. 

Foreign 
value. 

Duty. 

Percent- 
age. 

Duty  on 
domestic 
value. 

Percent- 
age on 
foreign 
value. 

Pocketknives: 
N  9090             

$1.00 

JO.  90 

90 

$3.76 

376 

579  j                                                

2.00 

1.80 

90 

4.65 

232* 

7915  P 

3.00 

2.10 

70 

7.65 

255 

Scissors: 
102  4J-ineh          

1.00 

2.15 

215 

3.52 

352 

1060  6-inch                     

2.00 

3.10 

155 

4.50 

225 

950  6-inch                                                         .... 

3.00 

3.45 

•     115 

5.20 

173 

Razors: 
225 

1.00 

1  50 

150 

2.90 

290 

1552                             

2.00 

2.04 

102 

4.50 

225 

1100 

3.00 

2.82 

94 

5.40 

180 

'This  checks  the  testimony  of  Mr.  Chas.  F.  Rockwell  (page  1904). 


204 


DIGEST   OF  TARIFF   HEARINGS,  H.  R.   7456. 


Paragraph  354,  pocketknives,  etc 
Paragraph  355,  table  cutlery,  etc 
Paragraph  357,  scissors,   etc 
Paragraph  359,  razors,   etc 
Paragraph  361,  pliers  and  nippers,  etc 


On  pocketknives  ranging  f  rorfi  $1  to  $3  in  foreign  value  the  average 
duty  on  that  value,  as  per  the  Fordney  rates,  is  83  per  cent.  But 
when  the  Fordney  rates  on  these  same  goods  are  computed  on  the 
American  valuation,  the  average  percentage  rate  is  increased  from  83 
per  cent  to  287  per  cent. 

Size  of  industry.  —  The  figures  of  recent  years  indicate  that  the 
domestic  industry  turned  out  pocketknives  valued  at  $10,000,000  a 
year. 

Rates  suggested.  —  The  rates  should  be  revised  so  as  to  provide 
straight  ad  valorem  duties  as  follows: 

Per  cent. 
40 
20 
40 
40 
20 

The  rates  of  duty  on  cutlery,  based  upon  American  valuation,  de- 
fined in  the  Senate  Finance  Committee's  revision  of  section  402  o  t  the 
bill,  would  be  an  effectual  bar  against  the  importation  of  almost  all 
cutlery,  excepting  special  designs  and  patterns  not  manufactured  in 
the  United  States. 

A  duty  of  40  per  cent,  computed  upon  American  valuation,  affords 
more  than  ample  protection,  because  this  rate  is  actually  equivalent  to 
an  average  rate  of  well  over  100  per  cent  based  on  foreign  valuation. 

It  is  evident  from  the  table  below  that  a  straight  ad  valorem  duty 
of  40  per  cent  on  pocketknives,  razors,  and  scissors,  and  20  per  cent  on 
table  cutlery,  as  suggested,  would  provide  more  than  adequate  pro- 
tection to  domestic  manufacturers,  and  at  the  same  time  permit  the 
continuation  of  imports  which,  however,  would  pay  a  much  higher 
rate  of  duty  than  under  either  the  Payne-Aldrich  or  the  Dingley  bill. 

Table  showing  straight  ad  valorem  duty  of  40  per  cent  on  pocketknives,  scissors, 
and  razors,  and  20  per  cent  on  table  cutlery. 


Article. 

Foreign 
cost. 

Domestic 
value. 

Duty  40 
and  20  per 
cent. 

Cost  to 
importer. 

Percent- 
age duty 
on  foreign 
cost. 

Pocketknives: 
404                         

$0.33 

$1.00 

$0.40 

$0.73 

121 

614  DW 

.60 

2.75 

1.10 

1.70 

183 

N  2000  St 

80 

3  60 

1  44 

2  24 

180 

6042  

2.33 

7.00 

2.80 

5.13 

120 

6066 

4.78 

12.25 

4.90 

9.68 

202 

Scissors: 
9338  5J-inch 

85 

2  27 

90 

1  70 

106 

876i,  Si-inch  .  . 

1.35 

3.70 

1.48 

2.83 

209 

1535  Si-inch 

3.23 

5.75 

2.30 

5.23 

71 

2610  7J-inch 

5.13 

8.66 

3.46 

8.59 

67 

Razors: 
5204  SP...                     

1.17 

3.25 

1.30 

2.47 

111 

lOlf  SP 

6.23 

11.70 

4.68 

10.91 

75 

Table  cutlery: 
Wilson  But  

2.79 

3.50 

20  per  cent. 
.70 

3.49 

21 

35  Stag  C                                                  . 

23.35 

50.40 

10.08 

33.43 

43 

The  combination  of  specific  and  ad  valorem  duties  on  articles  of 
cutlery  is  described  by  the  witness  as  being : 

(a)  Unscientific  and  arbitrary  with  reference  to  classification. 


DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456. 


205- 


(&)  Unequal  and  unfair  in  operation. 

(c)   Prohibitory  as  to  a  large  class  of  goods. 

The  following  table  of  duties  and  percentages  on  pocketknives, 
scissors,  and  razors  shows  the  uneven  and  inequitable  operation  of 
the  Fordney  bill  at  a  glance : 


Value 
per 

dozen. 

Actual 
duty. 

Approx- 
imate 
percent- 
age. 

Value 
per 
dozen. 

Actual 
duty. 

Approx- 
imate 
percent- 
age. 

Pocketknives  
Do 

$0.50 
55 

$0.27 
764 

54 
139 

Scissors-Contd.... 
Do 

$1.80 
5.00 

$3.03 

168 
83 

Do.... 

1.25 

.97* 

78 

Razors 

1  00 

1  50 

150 

Do. 

1.30 

1.59 

122 

Do 

1  95 

1  784 

91  i 

Do.... 

3.00 

2.10 

70 

Do. 

2  00 

2  04 

102 

Do  

3.20 

3.36 

105 

Do  

2.95 

2.32J 

79 

Do 

8.00 

4  8     i 

60 

Do 

3  00 

2  82 

Do  

8.50 

6.15 

72 

Do. 

3.95 

3  10J 

78 

Do  

15.00 

8.10 

53 

Do  

4.0ff 

3.60 

90 

60 

2.01 

334 

Do 

10  00 

Do  

1.75 

2.41J 

138 

Remarks, — The  actual  result  of  compelling  each  article  to  bear 
the  name  of  the  maker  would  destroy,  in  the  witness's  opinion,  the 
hard  work  of  40  to  50  years  which  cutlery  importers  have  put  in  to 
establish  their  own  trade  names  and  brands.  It  would  furnish  for- 
eign manufacturers  with  the  best  kind  of  free  advertising. 

PARAGRAPH  357. — SCISSORS  AND  SHEARS. 
WITNESS,  AND  INTERESTS  REPKESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Camille  L.  Gairoad.  representing  manufacturers  of  scissors  and  shears.;.: 
address,  Newark,  N.  J. 

Hearings :  Pages  1936-1941. 

Costs  and  selling  prices.-^A  7^-inch  barber  ^hears  costs  in  Ger- 
many $4.59  per  dozen.  Under  the  Underwood  bill  there  is  a  duty 
of  $1.37  per  dozen,  making  a  total  cost  of  $5.96  per  dozen.  This  is 
sold  by  the  retailer  for  $3  per  pair.  Based  on  the  proposed  tariff, 
the  duty  and  German  cost  would  equal  $10.89  per  dozen.  An  Ameri- 
can barber's  shears  comparable  to  the  above  shears  would  sell  whole- 
sale at  $11.40  per  dozen. 

A  scissors  costing  $5.13  in  Germany  also  sells  for  $3  per  pair. 
The  American  sample  shown  by  the  importer  of  German  goods  is 
not  comparable.  A  comparable  barber's  scissors  sells  for  $12.40  per 
dozen.  The  duty  on  the  German  scissors  would  be  $6.74,  making  a 
total  cost  of  $11.97  per  dozen. 

A  German  scissors  costing  85  cents  per  dozen  is  comparable  to  an 
American  article  that  sells  for  $1.58  per  dozen,  instead  of  $2.27  per 
dozen,  as  is  claimed  by  importers. 


206  DIGEST  OF  TARIFF  HEARINGS,  H.  R.  7456. 

PARAGRAPH  358. — RAZORS. 

WITNESS,  AND  INTERESTS  BEPBESENTED. 

FAVOBING  PBOPOSED  OB  HIGHER  DUTIES  : 

Mr.  H.  L.  Henry,  representing  manufacturers  of  standard  razors ;  address, 
Geneva,  N.  Y. 

Hearings :  Pages  1945-1948. 

Costs  and  selling  prices. — German  cheap  razors  are  made  of  Bes- 
semer steel  or  a  very  cheap  grade  of  Swedish  steel  and  cost  $1  per 
dozen.  They  are  often  packed  in  individual  cases  printed  "Fully 
concave,  fully!  warranted,"  and  the  cases  are  marked  $3  or  $3.50 
each.  The  American  manufacturers  make  razors  out  of  a  high-grade 
steel. 

Size  of  industry. — The  nine  factories  represented  employ  nor- 
mally about  1,300  highly  skilled  artisans.  The  factory  of  the  Geneva 
Cutlery  Corporation,  normally  employing  650  to  700  people,  is  now 
employing  about  90  to  100  and  running  on  half  time. 

Comparability. — The  German  razor  at  $1.17  per  dozen  had  been 
compared  with  a  Torrey  razor  selling  for  $3.25  per  dozen.  Witness 
read  a  telegram  from  the  Torrey  Razor  Co.,  stating  that"  the  last 
quotation  to  Mr.  Kastor  (importer  of  German  goods)  was  $4.05  per 
dozen.  The  Boker  "  Red  Injun  "  razor  had  been  compared  with  a 
razor  made  by  one  of  the  smaller  American  factories.  They  are  not 
comparable  in  any  sense  of  the  word.  The  Boker  razor  is  a  beau- 
tiful piece  of  work  made  by  bonus-paid  workmen,  and  there  is  no 
better  razor  made  than  that  "  Red  Injun." 

PARAGRAPH  359. — DENTAL  INSTRUMENTS. 
WITNESSES,  AND  INTEBESTS  BEPBESENTED. 

FAVOBING  PBOPOSED  OB  HIGHEB  DUTIES  : 

The  Beloit  Burr  Manufacturing  Co.,  Beloit,  Wis.     (Brief.) 
REQUESTING  RECLASSIFICATION  : 

Dr.  Homer  C.  Brown,  representing  the  National  Dental  Association,  Colum- 
bus, Ohio. 

Witness:  The  Beloit  Burr  Manufacturing  Co.,  Beloit,  Wis. 
(Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  average  cost  to  the  dentist  of  Amer- 
ican burrs  is  $9  per  gross.  The  saving  to  the  average  American  den- 
tist, paying  $6  per  gross  for  the  German  burr  (costing  the  German 
manufacturer  $1.44),  will  be  limited  to  2t^  cents  per  cavity  op- 
erated. 

Comparability. — The  company  has  an  offer,  dated  October  21, 
1921,  of  German  plain  round  burrs  at  10.2  marks  per  dozen  which, 
taking  the  then  rate  of  exchange  (six-tenths  of  1  cent)  and  adding 
postage,  would  be  equivalent  to  12  cents  per  dozen  burrs.  As  against 
this,  the  steel  in  a  dozen  of  the  company's  burrs  costs  3  cents  and 
other  items  bring  up  the  total  cost  per  dozen  to  more  than  the  12 
cents  cited. 

Rates  suggested. — A  duty  which  will  bring  up  the  cost  to  the  im- 
porter to  not  less  than  $5  per  gross. 

Hearings :  Pages  1949-1951. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  207 

Witness:  Dr.  Homer  C.  Brown. 

Size  of  industry. — The  manufacture  of  dental  instruments  is  an 
American  industry  whose  prominence  is  as  well  recognized  through- 
out the  world  as  is  that  of  the  American  dentist.  The  ratio  of  ex- 
ports to  imports  exceeds  20  to  1,  that  is,  for  every  dollar's  worth  im- 
ported, $20  worth  is'  exported.  The  dental-instrument  industry  is, 
therefore,  entirely  different  from  that  manufacturing  surgical  in- 
struments. 

Comparability. — American  dental  instruments  are  as  good  as,  or 
better  than,  the  foreign  article,  but  there  are  a  few  items  which  are 
manufactured  abroad,  such  as  tube  teeth,  burr  brushes  and  burrs, 
which  many  dentists  like  to  have  available.  The  imported  articles, 
made  for  special  purposes,  have  a  very  limited  demand  and  are  not 
manufactured  in  the  United  States. 

Rates  suggested. — In  view  of  the  fact  that  dental  instruments  are 
entirely  different  from  surgical  instruments  and  that,  moreover,  the 
bulk  of  the  dental  instruments  imported  consists  of  small  attach- 
ments costing  from  60  cents  to  $1  per  dozen,  dental  instruments 
should  be  stricken  from  paragraph  359  and  the  following  new  para- 
graph incorporated  in  the  bill : 

Dental  instruments,  or  parts  thereof,  composed  wholly  or  in  part  of  iron, 
steel,  copper,  brass,  nickel,  aluminum,  or  other  metal,  finished  or  unfinished, 
35  per  cent  ad  valorem :  Provided,  That  all  articles  specified  in  this  paragraph, 
when  imported,  shall,  when  practicable,  have  the  name  of  the  maker  and 
beneath  the  same  the  country  of  origin  die-sunk  conspicuously  and  indelibly  on 
the  outside,  or,  if  a  jointed  instrument,  on  the  outside  when  closed. 

The  specific  rate  is  deleted  because  the  attachments  mentioned 
have  a  very  small  unit  value,  and  specific  duties  as  proposed  would 
advance  the  total  ad  valorem  rate  out  of  all  proportion  to  the  pro- 
tection needed.  Dental-instrument  manufacturers  in  conference 
with  practicing  dentists  agree  that  classification  as  proposed  is  the 
only  equitable  means  of  treating  dental  instruments.  The  National 
Dental  Association  requests  the  Finance  Committee  to  consider  the 
35  per  cent  rate  (American  valuation)  proposed  as  tentative,  only, 
until  steps  are  taken  to  determine  the  equivalent  duty  accruing  under 
foreign  valuation.  If  it  were  found  that  the  proposed  35  per  cent 
duty  is  much  in  excess  of  the  present  duty  (20  per  cent)  on  dental 
instruments,  the  rate  should  be  adjusted  accordingly. 

PARAGRAPH  359. — SURGICAL  INSTRUMENTS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  J.  Douglass,  representing  American  Surgical  Instruments  Manu- 
facturers, Brooklyn,  N.  Y. 

Mr.  E.  J.  Sovatkin,  representing  the  Sklar  Manufacturing  Co..  Brooklyn, 

N.  Y. 
FAVORING  LOWER  DUTIES: 

Mr.  David  Walker,  representing  the  Kny-Scheerer  Corporation,  New  York 
City. 

Brief  of  the  Hospital  Conference  of  the  City  of  New  York,  the  Hospital 
Association  of  Philadelphia,  the  Wisconsin  Hospital  Association,  and  the 
Illinois  Conference  of  the  Catholic  Hospital  Association  of  the  United 
States,  together  with  letters  from  various  individual  hospitals. 

The  A.  S.  Aloe  Instrument  Co.,  St.  Louis,  Mo.     (Brief.) 


208  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

Hearings :  Pages  1951-1952. 

Witness:  Mr.  J.  J.  Douglass,  representing  American  Surgical  In- 
struments Manufacturers. 

Comparability. — Japanese  goods  are  not  as  high  grade  as  the  Ger- 
man, and  the  Germans  are  the  ones  that  are  feared. 

Rates  suggested. — American  surgical  instrument  manufacturers 
are  satisfied  with  the  rates  proposed  in  the  Underwood  bill  as  it 
passed  the  House,  remembering  that,  under  the  Underwood  bill, 
American  manufacturers  made  only  20  per  cent  of  the  surgical  in- 
struments used  in  this  country.  The  proposed  tariff,  embodying  the 
American  valuation,  would  be  satisfactory,  as  enabling  American 
surgical-instrument  manufacturers  to  make  from  60  to  65  per  cent  of 
the  goods  used  in  the  United  States.  That  is  what  they  should  have, 
to  give  them  a  little  opportunity  in  peace  times  as  well  as  war.  Wit- 
ness's firm,  Fred  Haslam  &  Co.,  is  working  only  20  per  cent  of  the  force 
it  had  a  year  ago. 

Hearings :  Pages  1958-1967. 

Witness:  Mr.  E.  J.  Sovatkm,  representing  the  Sklar  Manufactur- 
ing Co. 

Costs  and  setting  prices. — Seventy-five  to  ninety-five  per  cent  of 
the  cost  of  surgical  instruments  is  labor,  paid  for  at  40  cents  to  75 
cents  per  hour  in  the  United  States  and  about  6  cents  an  hour  in  Ger- 
many. Germans  to-day  are  selling  just  low  enough  to  cut  under  the 
market  here. 

Size  of  industry. — There  are  about  50  manufacturers  of  surgical 
instruments  in  the  United  States.  Contrary  to  the  testimony  of 
another  witness,  over  7,500  patterns  of  surgical  instruments  are  made 
in  this  country. 

Comparability. — American  manufacturers  can  produce  all  kinds 
of  surgical  instruments  if  foreign  competition  were  removed. 

Rates  suggested. — An  ad  valorem  duty  of  60  per  cent  plus  the  spe- 
cific rates  proposed.  Under  a  50  per  cent  rate  domestic  plants  would 
manufacture  60  per  cent  of  the  instruments  used,  while  at  60  per  cent, 
all  instruments  would  be  domestic  except  those  which  for  some  reason 
could  not  be  made  here.  Surgical  instrument  costs  form  but  a  small 
part  (one-tenth  of  1  per  cent)  of  the  total  expenditure  of  hospitals, 
and  the  duty  would  work  but  little  hardship. 

Hearings :  Pages  1956-1958. 

Witness:  Mr.  D.  Walker,  representing  the  Kny-Scheerer  Corpora- 
tion. 

Costs  and  selling  prices. — Hemostatic  forceps  cost  abroad  $4.20; 
American  wholesale  prices  of  various  domestic  manufacturers  are, 
respectively,  $10.20,  $10.20,  $10.20,  and  $12.  (See  below  under 
"Kates  suggested.") 

Size  of  industry. — The  whole  surgical  instrument  field  covers  10,000 
items,  of  which  probably  no  more  than  20  per  cent  are  manufactured 
in  the  United  States.  Imports  are  absolutely  essential  to  the  efficient 
operation  of  American  surgery,  because  even  with  excessive  duties 
some  would  still  be  imported  and  prices  would  be  so  high  that  Ameri- 
can surgery  would  suffer. 

Rates  suggested. — The  rates  of  duty  should  be  decreased  to  the 
American  valuation  equivalent  of  20  per  cent  of  the  foreign  valua- 
tion. The  following  table  shows  that  the  proposed  rate  would  amount 


DIGEST   OF   TAEIFF    HEARINGS,   H.   R.    7456. 


209 


to  70  to  123  per  cent  on  foreign  valuation,  and  that  the  selling  prices 
of  domestic  manufacturers  are  to-day  less  than  the  prices  charged  for 
the  foreign  product : 

^_    Figures  applying  to  surgical  instruments,  paragraph  359  of  H.  R.  lJf56. 


Present  cost. 

Present  selling  pnce  of  imported 
and  domestic  makes. 

Under  proposed  Ameri- 
can valuation. 

Based 

Title. 

Ger- 
many. 

New 
York. 

Knv- 
Scbeer- 
er 
Cor- 

Has- 
lam. 

Sklar. 

Pilling. 

Cost 
will 
be  in 

New 

Equal 
to 
duty  of 
(per 

on 
average 
Ameri- 
can 
selling 

pora 
tion. 

York. 

cent)— 

price 

per 

do/.en. 

Hemostatic  forceps,  20  per 

cent  

$4.20 

$5.28 

$10.20 

$10.20 

$10.20 

$12.00 

$9.33 

123 

$11.00 

Minor  operating  knives,  20 

per  cent  

4.20 

5.28 

7.80 

6.60 

7.80 

7  53 

70? 

7  00 

Bandage  shears,  30  per  cent.  . 
Thumb  forceps,  20  per  cent  .  . 
Sponge  forceps,  20  per  cent.  .  . 
Dressing  forceps,  20  per  cent  . 
Uterine  dilator,  30  per  cent  .  . 

6.00 
2.40 
6.60 
6.60 
33.00 

8.16 
3.00 
8.28 
8.28 
41.28 

16.20 
5.40 
16.20 
15.60 
72.00 

12.48 
4.00 
12.00 
13.20 
48.00 

12.00 
4.20 
12.00 
13.20 
13.20 

15.00 
4.50 
12.00 
15.00 
66.00 

12.00 
5.79 
12.  .54 
13.20 
57.21 

94 
98 
80* 
99§ 
80* 

12.00 
5.00 
12.00 
M.OO 
60.00 

NOTE. — If  the  American-valuation  plan  is  adopted,  we  respectfully  suggest 
that  the  proposed  specific  duty  be  eliminated  and  the  ad  valorem  duty  he  fixed 
at  10  per  cent,  or  at  most  15  per  cent,  ad  valorem,  because  we  find  that  the 
present  revenue  on  a  basis  of  20  per  cent  duty  would  (if  applied  to  "American 
valuation  " )  be  equal  to  7-11  per  cent. 

Remarks. — It  must  be  borne  in  mind,  in  dealing  with  surgical 
instruments,  that  importers'  stock  turnover  amounts  to  less  than  33^ 
per  cent  a  year  and  for  this  reason  a  high  gross  profit  is  required 
to  cover  interest  and  other  charges. 

A  brief  of  various  hospital  authorities,  objecting  to  any  increase 
of  duty  above  20  per  cent  ad  valorem,  is  separately  summarized. 

Hearings: 'Pages  1952-1956. 

Witness:  Hospital  Conference  of  the  Citv  of  New  York,  etc. 
(Brief.) 

Size  of  industry. — In  1914  there  were  25  firms  manufacturing  sur- 
gical instruments'  in  the  United  States.  The  wholesale  trade  associa- 
tion had  a  membership  of  21  firms,  five  of  which  manufactured  only 
furniture  and  sterilizers,  and  three  thermometers  and  syringes,  leav- 
ing only  13  firms  manufacturing  surgical  instruments.  Two  of  these 
employed  normally  possibly  100  persons,  five  employed  50  persons, 
and  six  employed  from  15  to  25  persons,  each.  The  capital  invested 
in  hospitals  in  the  United  States  amounts  to  over  $3,000,000.000,  and 
at  the  present  date  their  valuation  would  be  in  excess  of  $5,000,000,000. 

Comparability. — The  best  surgical  instruments  are  hand  forged 
and  nearly  all  of  the  operatives  in  this  country  who  are  capable  of 
making  fine  instruments  are  of  foreign  birth.  Many  left  the  country 
during  the  war  and  have  not  returned.  It  is  an  absolute  fact  that 
it  is  impossible  to-day  to  buy  from  domestic  manufacturers  more 
than  a  small  percentage  of  the  instruments  used.  Hospitals  are  com- 
pelled to  use  inferior  instruments  because  foreign  manufacturers 
have  not  as  yet  reentered  the  market.  Manufacturers  of  soft-metal 


210  DIGEST   OF   TARIFF    HEARINGS,   H.   B.   1456. 

instruments  in  the  United  States  produce  a  good  quality  of  product 
and  have  run  their  plants  at  a  profit  under  the  20  per  cent  duty  in 
the  Underwood  bill. 

Rates  suggested. — The  fact  is  cited  that  many  countries,  notably 
Canada,  admit  surgical  instruments  free  of  duty,  and  that  Congress, 
before  the  passage  of  the  Underwood  Act,  made  a  careful  investiga- 
tion of  the  surgical  instrument  industry  and  decided  that  it  did  not 
need  a  greater  protection  than  20  per  cent.  For  this  reason  the  brief 
requests  that  the  duty  on  surgical  instruments  be  retained  at  20 
per  cent  ad  valorem.  Other  objections  to  an  increase  in  duty  note 
the  fact  that  a  large  number  of  surgical  instruments  used  by  specialist 
surgeons  are  not  made  in  this  country,  because  the  number  required 
does  not  justify  quantity  production,  and  that  any  increase  in  duty 
would  result  in  unwarranted  hardship  to  American  hospitals  already 
operating  under  great  financial  difficulty. 

Remarks. — Letters  of  the  same  purport  are  presented  from  many 
individual  hospitals,  etc. 

Witness:  The  A.  S.  Aloe  Instrument  Co.,  St.  Louis,  Mo.,  retail 
distributors  of  surgical  instruments.  (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — The  prices  of  all  American  makers  are 
practically  identical,  and  were  higher  in  the  fall  of  1920  and  in  1921 
than  ever  before  in  the  history  of  the  industry. 

Size  of  industry. — There  are  15  to  25  domestic  manufacturers, 
most  of  them  very  small.  Only  5  produce  a  reasonable  volume  of 
business,  and  only  3  make  a  general  line  of  steel  instruments.  No 
firm  has  gone  out  of  the  business  during  the  past  five  years,  except 
those  regularly  manufacturing  other  lines  who  took  up  surgical  in- 
struments as  a  war  emergency. 

Comparability. — Japanese  instruments  are  bo}' cotted ;  no  dealer  or 
surgeon  will  consider  them. 

Rates  suggested. — Thirty-three  and  one-third  per  cent  ad  valorem. 

Remarks. — The  brief  is  largely  a  critical  commentary  upon  the 
testimony  of  Mr.  E.  J.  Sovatkin.  (See  above.) 

PARAGRAPH  360. — SCIENTIFIC  INSTRUMENTS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Harvey  N.  Ott,  representing  the  Central  Scientific  Co.,  Buffalo,  N.  Y. 
The  C.  F.  Pease  Co.,  Chicago,  111.     (Brief.) 
Keuffel  &  Esser  Co.,  Hoboken,  N.  J. 

Dr.   A.   C.   Abbott,   director   of   School   of  Public  Hygiene,   University   of 
Pennsylvania.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.  James  G.  Biddle,  Philadelphia,  Pa.,  representing  himself. 
The  American  Council  on  Education  and  the  special  committee  of  the  Asso- 
ciation of  College  Presidents  of  Pennsylvania.     (Brief.) 

Hearings :  Pages  1976-1977. 

Witness :  Mr.  H.  N.  Ott,  representing  the  Central  Scientific  Co. 

Costs  and  selling  prices. — The  witness  did  not  mention  costs  or 
selling  prices  in  this  testimony,  but  when  testifying  on  optical  glass 
(page  1529)  he  stated  that  German  scientific  instrument  manufac- 
turers were  charging  excessive  prices  for  instruments  exported  to- 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  211 

the  United  States.  For  this  reason  present  costs  to  the  importer 
could  not  be  taken  as  indicative  of  the  foreigner's  competitive  posi- 
tion, since  if  the  duty  were  raised  foreign  manufacturers  could 
readily  decrease  their  selling  price  to  an  extent  neutralizing  the 
effect  of  the  higher  duty. 

Size  of  industry.— The  witness  disputed  Mr.  Biddle's  assertion 
(pages  1968-1976)  that  the  scientific-instrument  industry  in  tha 
United  States  is  large  enough  to  take  care  of  itself.  He  went  on  to 
quote  from  the  Ways  and  Means  Committee  report  of  last  year,  on 
bill  No.  7785,  to  the  effect  that  the  scientific-instrument  industry  is  a 
new  industry  brought  into  existence  by  the  needs  of  America  during 
the  war.  Prior  to  1904  the  manufacture  in  the  United  States  was 
negligible,  because  import  duty  rates  were  low  and  the  duty-free  pro- 
vision permitted  scientific  and  educational  institutions  to  buy  from 
foreign  manufacturers  on  a  free-trade  basis. 

Comparability. — The  witness  referred  to  the  report  of  the  United 
States  Tariff  Commission  to  the  effect  that,  generally  speaking,  do- 
roestic  scientific  instruments  are  equal  to  the  imported. 

Rates  suggested. — Retention  of  the  proposed  rate  of  40  per  cent  on 
American  valuation  and  the  exclusion  of  the  duty-free  privilege 
formerly  accorded  to  educational  and  scientific  institutions.  The 
witness  quoted  further  from  the  report  of  the  Ways  and  Means 
Committee,  cited  above,  that  the  scientific-instrument  industry  is  a 
key  industry,  absolutely  necessary  for  the  proper  instruction  of  scien- 
tific subjects  in  American  schools  and  colleges.  Scientific  instru- 
ments are  indispensable  in  laboratories  controlling  the  manufacture 
of  metals,  chemicals,  and  other  industrial  products,  especially  muni- 
tions and  explosives.  In  a  military  emergency,  therefore,  it  is  abso- 
lutely necessary  to  have  a  well- developed  scientific  instrument  manu- 
facturing industry.  Regarding  the  duty-free  provision,  witness 
quoted  from;  a  report  of  the  United  States  Tariff  Commission  to  the 
effect  that  in  response  to  a  number  of  letters  addressed  to  professors 
and  teachers  in  American  universities,  they  received  about  20  replies. 
Of  these,  17  were  in  favor  of  doing  away  with  the  duty-free  privi- 
lege, one  was  against  it,  one  was  noncommittal,  and  one  made  sug- 
gestions for  alterations. 

Remarks. — Mr.  Ott's  testimony  forms  the  subject  of  comment  by 
Mr.  Burton  E.  Livingstone,  permanent  secretary  of  the  American 
Association  for  the  Advancement  of  Science,  in  a  letter  of  October 
1,  1921,  to  the  chairman  of  the  Senate  Committee  on  Finance,  sum- 
marized below : 

Mr.  Ott  had  referred  in  his  testimony  to  a  booklet  published  by  the 
American  Association  for  the  Advancement  of  Science,  containing  a 
resolution  against  the  omission  of  a  duty-free  privilege  applying  to 
scientific  materials  and  apparatus  used  by  educational  and  research 
institutions  of  the  United  States.  According  to  Mr.  Ott,  this  resolu- 
tion-was passed  only  by  the  executive  committee,  consisting  of  11 
members  out  of  a  total  of  12,000  in  the  association  as  a  whole,  and 
was  consequently  not  the  expression  of  the  entire  association. 

In  response  to  this  statement  Mr.  Livingstone  affirms  that  the 
resolution  does  represent  the  views  of  the  association.  As  in  all 
other  large  organizations,  all  the  business  of  the  American  associa- 
tion is  transacted  by  the  council,  and  the  executive  committee  of  the 
council  is  empowered  to  act  for  the  council  in  caring  for  all  urgent 


'212  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

business  arising  between  annual  meetings.  The  resolution  in  ques- 
tion was  not  passed  until  after  the  last  council  session  at  the  Chi- 
cago meeting,  and  was  therefore  referred  to  the  executive  committee 
and  adopted  by  that  body,  acting  for  the  council. 

The  resolution  was  published  in  the  official  organ  of  the  associa- 
tion, "  Science,"  and  a  copy  of  the  booklet  containing  the  resolu- 
tion was  sent  to  each  of  the  members  early  in  July.  The  booklet 
bore  a  special  request  that  those  disapproving  of  any  resolution 
contained  therein  should  inform  the  permanent  secretary.  Only 
27  letters  in  that  sense  were  received  up  to  October  1,  1921,  and  all 
but  2  were  from  manufacturers,  who  apparently  hoped  to  gain  by 
the  removal  of  the  duty-free  privilege  hitherto  given  educational 
institutions.  Only  10  of  the  letters  were  from  members  of  the  as- 
sociation. "  Since  only  10  out  of  about  12,000  members  have  written 
to  disapprove  the  resolution  on  duty-free  importation,  it  is  un- 
equivocally clear  that  this  resolution  is  not  disapproved  of  by  any 
considerable  number  of  members." 

Witness:  The  C.  F.  Pease  Co.,  Chicago,  111.  (Brief;  no  appear- 
ance at  hearings.) 

Costs  and  selling  prices. — A  set  of  instruments  such  as  are  used  by 
professional  draftsmen  costs  $10  to  produce  in  the  United  States. 
Of  this  amount,  85  per  cent,  or  $8.50,  is  labor,  and  $1.50  raw  ma- 
terial. The  cost  in  Germany  would  be  the  same  for  material,  and  for 
labor  one- third  of  the  American  cost,  or  $2.80,  making  a  total  of 
$4.30  as  compared  with  the  American  cost  of  $10. 

Size  of  industry. — Before  the  war  practically  all  the  drawing  in- 
struments used  in  the  country  were  imported  from  Germany,  but  as 
a  result  of  war  conditions  several  American  manufacturers  took  up 
their  production.  Made  from  nickel  silver  and  high-grade  tool  steel, 
they  are  instruments  of  precision,  requiring  expensive  machinery 
and  highly  skilled  labor  for  their  successful  production.  Several 
years  were  required  to  develop  the  domestic  industry  to  produce  the 
necessary  dies,  tools,  and  patterns,  and  bring  the  business  to  a  pro- 
ductive stage. 

At  present,  large  quantities  of  German  instruments,  estimated  at 
from  $3,000,000  to  $5,000,000  annually,  are  flooding  the  market,  and 
unless  adequate  protection  is  furnished  American  manufacture  will 
be  impossible.  Practically  no  drawing  instruments  were  made  in 
America  under  the  Payne- Aldrich  tariff,  as  the  duty  of  40  per  cent 
was  not  sufficient. 

Rates  suggested. — A  duty  of  60  per  cent  ad  valorem  to  equalize 
conditions. 

Remarks. — Attention  is  drawn  to  the  prevalence  of  child  labor  in 
Germany. 

Witness:  Keuffel  &  Esser  Co.,  Hoboken,  N.  J.  (Brief;  no  appear- 
ance at  hearings.) 

Rates  suggested. — All  instruments  and  appliances  containing  parts 
of  optical  glass,  45  per  cent  ad  valorem.  Philosophical,  scientific, 
and  laboratory  instruments,  apparatus,  utensils,  and  appliances;  sur- 
veying instruments,  45  per  cent  ad  valorem.  Surgical,  dental,  mathe- 
matical, and  drawing  instruments,  60  per  cent  ad  valorem. 

The  brief  points  out  that  mathematical  and  drawing  instruments 
belong  by  nature  and  process  of  manufacture  to  the  same  class  with 
surgical  and  dental  instruments.  Both  lines  were  developed  as  a  war 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  213 


necessity,  require  the  same  type  of  highly  trained  labor,  and 
from  the  highest  grade  of  materials.     This  type  of  instrui 


are  made 
instruments  re- 
quires greater  protection  than  general  manufactures  of  metal,  as  the 
labor  cost  is  much  higher  and  the  industry  is  not  supported  by  an 
established  reputation  in  this  country,  as  is  the  case  with  machinery 
and  tools. 

Slide  rules  are  made  of  wood  and  are  not  covered  by  paragraph 
360,  but  they  are  mathematical  instruments  and  should  be  so  classed. 
Domestic  prices  on  them  are  only  45  to  50  per  cent  above  prewar,  but 
dangerous  competition  is  appearing  from  Germany  and  Japan.  The 
duty-free  provision  for  educational  purposes  should  not  be  retained, 
as  it  sets  a  premium  on  imported  goods  against  those  of  American 
manufacture. 

Remarks. — At  the  date  of  writing  (April  27,  1921),  drawing  in- 
struments were  being  sold  in  Germany  for  home  consumption  at 
prices  equivalent,  at  the  rate  of  exchange  then  current,  to  6  per  cent 
above  prewar  prices,  and  for  export  at  prices  equal  to  140  per  cent  of 
prewar  prices.  Domestic  prices  of  drawing  instruments  are  only  25 
per  cent  higher  than  those  prevailing  in  1914.  German  wages  (taken 
at  1£  cents  per  mark),  with  duty  and  transportation  added,  do  not 
exceed  15  per  cent  of  to-day's  American  wages  in  this  line. 

Witness :  Dr.  A.  C.  Abbott,  director  of  School  of  Public  Hygiene, 
University  of  Pennsylvania.  (Brief;  no  appearance  at  hearings.) 

Comparability. — For  a  number  of  years  before  the  war  American 
educational  institutions  imagined  that  suitable  instruments  and  ap- 
paratus could  be  had  only  by  importation.  Several  years  before  the 
war  the  writer  found  that,  with  few  exceptions,  chemicals,  dyestuffs, 
glassware,  and  apparatus  of  American  make  could  be  obtained  which 
meet,  in  general,  all  the  needs  of  such  institutions,  and  at  prices 
which  were  not  prohibitive.  There  are  a  few  unusual  types  of  appa- 
ratus which  are  made  only  by  foreign  makers,  but  there  is  no  reason 
why,  with  proper  encouragement,  these  could  not  be  made  in  this 
country.  Dr.  Abbott  sees  no  reason  why,  with  such  encouragement 
to  American  producers,  this  country  should  not  be  independent  of 
foreign  sources  for  these  supplies. 

Hearings :  Pages  1968-1976. 

Witness :  Mr.  J.  G.  Biddle,  representing  himself.  • 

Costs  and  setting  prices. — The  General  Electric  Co.  is  manufactur- 
ing X-ray  tubes  to  sell  for  $125,  on  merit,  whereas  tubes  from  Europe, 
which  can  be  sold  here  for  $25,  have  no  sale.  Selling  prices  play  very 
little  part  in  the  ability  of  any  particular  instrument  to  withstand 
competition.  Scientific  instruments  are  selected  almost  entirely  on 
the  basis  of  quality  and  fitness  for  a  given  purpose  and  not  on  price. 

Size  of  industry. — The  witness  has  been  unable  to  see  any  variation 
in  the  value  of  scientific  instruments  imported  under  tariffs  varying 
from  20  to  45  per  cent. 

Comparability. — Statements  made  before  in  reference  to  X-ray 
apparatus  may  be  applied  to  the  whole  scientific  instrument  line.  In- 
struments will  be  imported  so  long,  and  only  so  long,  as  the  domestic 
article  is  inferior  to  the  foreign,  regardless  of  price  charged  or  any 
other-factor. 

Rates  suggested. — A  40  per  cent  ad  valorem  rate  on  American 
valuation  is  far  in  excess  of  the  duties  levied  in  previous  tariff  bills. 

77134—22 15 


214  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

Taking  an  instrument  purchased  abroad  for  $36,  and  assuming  that 
the  necessary  gross  profit  to  the  importer  must  be  20  per  cent  of  the 
selling  price,  then  to  cover  selling  expenses  and  his  net  profit  on  the 
transaction  this  instrument,  brought  in  under  H.  R.  7456,  must  be  sold 
in  the  United  States  markets  for  $100.  Forty  dollars  of  this  would 
be  duty,  $20  gross  profit  to  the  importer,  and*  $4  transportation  and 
other  expenses  incurred  prior  to  delivery  at  the  United  States  port  of 
entry.  The  remaining  $36  covers  the  initial  cost.  In  other  words, 
40  per  cent  on  American  valuation  corresponds  to  110  per  cent  on 
foreign  valuation.  Former  tariff  acts  carried  duties  bearing  from  20 
to  45  per  cent  on  the  foreign  valuation;  the  rate  proposed  in  the 
Fordney  bill  amounts,  therefore,  to  an  increase  of  from  100  to  150 
and  in  some  cases  to  600  per  cent.  Witness  figures  that  15  per  cent 
on  American  valuation  would  be  very  nearly  equivalent  to  45  per  cent 
on  foreign  valuation.  He  submits  that  representatives  of  the  Ameri- 
can Association  for  the  Advancement  of  Science  ask  that  the  privi- 
lege now  granted  educational  and  scientific  institutions  of  free  im- 
portation of  scientific  instruments  be  continued,  on  the  ground  that 
foreign  instruments  will  be  imported  and  used,  regardless  of  duty, 
if  superior  to  the  domestic  article.  The  increased  duty  will,  there- 
fore, amount  to  an  additional  handicap  to  American  scientific  institu- 
tions without  benefiting  American  manufacturers. 

Witness :  The  American  Council  on  Education  and  the  special  com- 
mittee of  the  Association  of  College  Presidents  of  Pennsylvania. 
(Brief;  no  appearance  at  hearings.) 

/Size  of  industry. — The  brief  is  a  protest  against  the  proposed  re- 
peal of  the  exemption  from  duty  applying  to  instruments  intended 
for  educational  and  kindred  purposes.  It  is  pointed  out  that  im- 
ports under  this  head  have  not  exceeded  $600,000  in  any  one  year,  and 
the  revenue  under  the  bill  would  not  be  more  than  $250,000  per 
annum.  Of  these  importations,  more  than  one-half  are  for  State 
universities,  supported  by  public  taxation.  Imports  under  the  ex- 
isting duty-free  clause  are,  for  the  most  part,  specialized  apparatus, 
not  admitting  of  quantity  production,  and  which  American  manu- 
facturers regard  as  a  nuisance  rather  than  as  an  asset.  A  consider- 
able portion  of  it  is  glassware,  the  domestic  cost  of  which  is  at  least 
10  times  that  of  foreign.  Trade-union  restrictions  are  such  that  a 
skilled  workman  can  complete  the  amount  of  production  permitted 
for  the  day  in  two  and  one-half  hours.  Under  these  conditions  the 
cost  of  American-made  ware  is  so  high  that  even  American  manu- 
facturers  purchase  foreign  glass  for  their  own  laboratories. 

The  removal  of  the  exemption  is  not  supported  by  the  great  ma- 
jority of  American  manufacturers  who  are  themselves  interested  in 
the  promotion  of  scientific  research.  The  small  amount  of  the  im- 
portation under  the  duty-free  clause  is  proof  that  the  privilege  has 
not  been  abused. 

PARAGRAPH  362. — FILES. 

WITNESS,  AND  INTEREST  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Wallace  L.  Pond,  representing  the  Nicholson  File  Co.,  Providence,  R.  I. 
Hearings :  Pages  1977-1984. 

Costs  and  selling  prices. — In  the  manufacture  of  files  the  percentage 
of  labor  cost  is  very  high,  in  many  cases  reaching  80  or  90  per  cent 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  215 

of  the  total.  In  producing  2-inch  round  files,  1  pound  of  steel,  costing 
38  cents,  will  make  83  dozen  files,  having  a  net  value  of  $144.89. 
The  labor  expended  on  this  pound  of  steel  enhances  its  value  381 
times.  Wages  paid  in  England  are  to-day  very  much  lower  than 
the  average  wages  paid  for  the  same  class  of  operatives  in  this 
country.  The  operatives  here  in  the  same  general  classes  receive  a 
remuneration  ranging  from  66f  to  130  per  cent  more  than  the  same 
employment  receives  in  Sweden.  During  this  year  (1921)  Xew 
York  distributors  have  quoted  files  made  in  Austria,  laid  down  in 
New  York  duty  paid,  at  fully  20  per  cent  lower  than  the  lowest  prices 
now  being  quoted  by  American  makers  to  the  largest  distributing 
trade. 

Size  of  industry. — There  are  in  the  United  States  some  25  to  30 
makers  of  machine-cut  files,  employing,  when  in  full  operation,  ap- 
proximately 9,000  men. 

Rates  suggested. — The  folloAving  rates  of  duty  per  dozen  should  be 
assessed  on  files : 

Group  No.  1,  files  2$  inches  in  length  and  under $0.40 

Group  No.  2,  files  over  2}  inches  and  under  4i  inches  in  length .  75 

Group  No.  3,  files  over  4^  inches  and  under  7  inches  in  length 1.  00 

Group  No.  4,  files  7  inches  in  length  and  over 1.20 

In  the  10  years  prior  to  1914  files  were  imported  on  a  basis  of 
approximately  70,000  dozen  per  annum.  In  the  first  year  under  the 
Underwood  tariff  files  were  imported  to  the  amount  of  121,786  dozen. 
Japan  has  two  file  factories  in  active  operation  and,  considering  the 
wages  paid,  which  are  only  a  small  fraction  of  those  paid  in  this 
country,  some  very  serious  competition  in  years  to  come  must  be 
expected. 

The  specific  duty  is  preferable  because  the  actual  duty  is  then  a 
fixed  and  certain  amount  based  upon  the  quantity  of  goods  actually 
imported,  not  subject  to  the  vagaries  and  fluctuations  of  foreign  mar- 
ket or  exchange  values.  It  offers  no  incentive  for  foreign  file  makers 
to  undervalue  invoices  of  files. 

PARAGRAPHS  364,  365,  366.— RIFLES. 


REQUESTING  RECLASSIFICATION  : 

L.  H.  Hartmann  &  Son,  Philadelphia,  Pa.     (Brief;  no  appearance  at  hear- 
ings. ) 

Costs  and  selling  prices. — The  writer  directs  attention  to  certain 
incongruities  in  the  rates  of  duty  proposed  in  H.  R.  7456.  Thus  a 
reliable  Belgian  rifle  can  be  laid  down  here  at  $3  under  the  present 
duty  of  35  per  cent  ad  valorem,  and  can  be  sold  at  a  reasonable  profit 
for  $6  retail.  The  nearest  American-made  rifle  is  sold  to  jobbers  at 
$5.11,  which  makes  the  retail  price  almost  prohibitive  for  the  young 
man  who  wants  to  practice  rifle  shooting.  The  same  rifle  was  sold 
wholesale  for  $3.25  before  the  war.  There  is  no  well-defined  duty 
on  gunstocks,  which  are  not  grown  in  this  country. 


216  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   74-56. 

PARAGRAPHS  365  AND  366. — SHOTGUNS  AND  PISTOLS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  E.  P.  Gebhard,  representing  the  Milford  Co.,  importers,  Milford,  Del. 

Hearings :  Pages  1984-1989. 

Costs  and  selling  prices. — A  foreign-made  gun  (not  further  de- 
scribed) is  invoiced  at  $50.  To  this  are  added  duty,  $17.50,  package, 
freight,  etc.  $2.50,  importer's  profit  $7,  and  war  tax  $7.70- — making 
a  total  cost  to  the  wholesaler  of  $84.70.  To  this  he  adds  his  own 
profit  of  25  per  cent,  making  the  selling  price  to  the  retailer  $105.77. 
To  this  the  retailer  adds  a  profit  of  25  per  cent,  making  the  selling 
price  of  the  imported  article  to  the  consumer  $132.2}.. 

Under  the  Fordney  bill  this  gun  would  probably  be  compared 
with  the  Parker  Bros?  gun,  wholesaling  at  $112.38.  The  duty  of  35 
per  cent  plus  $10,  with  the  same  additions  as  before,  would  make  the 
importer's  selling  price  $123.21.  The  wholesaler's  selling  price  to  the 
retailer  would  be  $154.01,  and  the  retailer's  price  to  the  consumer 
$192.51,  instead  of  $132.21,  above.' 

For  a  .32  caliber  automatic  pistol  the  foreign  manufacturer  charges 
the  importer  $9.  To  this  must  be  added  duty,  $3.15,  5  per  cent  for 
freight,  package,  etc.,  the  importer's  profit  of  10  per  cent,  and  the 
war  tax,  making  a  total  of  $15.19  to  the  wholesaler.  The  whole- 
saler's profit  of  25  per  cent  brings  the  wholesale  selling  price  to 
$18.98.  Adding  the  retailer's  profit,  the  price  to  the  consumer  will 
be  $23.72.  Compared  with  this  is  the  Colt  .32  caliber  pistol,  the 
wholesale  price  of  which  is  $19.60.  The  importer  would  add  the 
duty  under  the  Fordney  bill  of  35  per  cent  plus  $3.50,  with  the  same 
additions  for  profit,  etc.,  making  the  price  to  the  wholesaler  $21.54, 
and  the  wholesaler's  selling  price  to  the  retailer  $26.92.  The  price 
to  the  consumer  would  be  $33.65  for  a  pistol  that  can  not  possibly 
cost  the  American  manufacturer  more  than  $6.  Prices  to  the  im- 
porter have  increased  commensurately  with  the  decrease  in  the  rates 
of  exchange.  A  sample  of  a  German  gun  cost  the  importer  before 
the  war  100  marks,  equal  to  $23.80.  To-day  the  German  manufac- 
turer charges  1,750  marks,  equivalent,  at  the  current  rate  of  exchange, 
to  $26.25. 

In  the  United  States  the  cheaper  grades  of  guns  have  advanced 
in  price  from  $20.50  in  1914  to  about  $60  to-day.  A  gun  formerly 
bought  for  $2.75  is  now  priced  by  the  wholesaler  at  $9.67.  The 
type  of  gun  formerly  bought  by  the  farmer's  son  for  $3.50  now  sells 
for  around  $12. 

Size  of  industry. — There  are  a  very  few  hundreds  of  laborers  em- 
ployed by  the  domestic  industry. 

Rates  suggested. — A  duty  of  20  per  cent  ad  valorem.  The  great 
majority  of  the  guns  sold  in  this  country  are  bought  by  farmers, 
their  sons,* and  colored  people.  This  class  of  gun  came  mostly  from 
England  and  Belgium,  and  is  entirely  off  the  market  to-day,  as  these 
people  can  not  afford  to  pay  the  prices  asked.  There  are  to-day  no 
foreign  guns  in  this  country,  or  on  the  other  side,  while  domestic 
makers  are  far  behind  their  orders.  The  35  per  cent  duty  must  be 
reduced  to  permit  any  competition  at  all. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  217 

PARAGRAPH  367. — WATCHES. 

WITNESSES,  AND  1NTEKESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   R.   C.  McCulloch,   representing  the  Hampden   Watch  Co.   and   other 

American  watch  manufacturers;  address,  Canton,  Ohio. 
The  South  Bend  Watch  Co.,  South  Bend,  Ind.     (Brief.) 
The  Hampden  Watch  Co.,  Canton,  Ohio.     (Brief.) 
The  Hamilton  Watch  Co.,  Lancaster,  Pa.     (Brief.) 
(The  three  briefs  are  identical.) 

FAVORING  LOWER  DUTIES  : 

Mr.  Emil  N.  Zolla,  general  manager  of  the  Helbein  Stone  Co.,  representing 

the  watch  importers  of  the  United  States. 
The  American-Swiss  Watch  Co.   (Inc.),  Peekskill,  N.  Y.     (Brief.) 

OBJECTING  TO  MARKING  PROVISIONS  : 

Mr.  Frank  D.  Pavey,  attorney,  representing  clients. 

Hearings :  Pages  2004-2023. 

Witness :  Mr.  R.  C.  McCulloch,  representing  the  Hampden  Watch 
Co.  and  others. 

Costs  and  selling  prices. — From  80  to  90  per  cent  of  the  cost  of  pro- 
ducing watch  movements  in  America  is  labor. 

Rates  suggested. — American  manufacturers  are  satisfied  with  the 
Fordney  bill  as  it  passed  the  House,  and  feel  that  no  change  should 
be  made  in  the  watch  paragraph  without  serious  and  careful  consid- 
eration. All  that  they  ask  is  to  have  the  difference  in  the  cost  of  pro- 
duction at  home  and  abroad  equalized  on  the  basis  of  prewar  condi- 
tions. The  rates  in  the  Fordney  bill  are  not  materially  higher  than 
those  in  the  act  of  1909,  and  the  marking  provisions  are  practically 
the  same.  The  gist  of  the  Fordney  bill  changes  is  as  follows  : 

1.  Provision  is  made  lor  movements  knocked  down  for  assembling. 
Testimony  submitted  before  the  Ways  and  Means  Committee  showed 
that  quite  a  business  has  been  built  up  in  this  country  through  a  sys- 
tem by  which  foreign-made  movements,  which  have'  been  completed 
and  timed,  are  taken  apart  before  being  shipped  to  the  United  States 
and  for  purposes  of  evading  the  duty  are  brought  into  this  country  as 
material,  afterwards  being  assembled  and  sold  in  competition  with 
American  watches.     The  provisions  in  the  Fordney  bill  relative  to 
movements  assembled  anoT  knocked  down  will,  it  is  believed,  to  some 
degree  make  impossible  a  continuation  of  this  fraud  upon  the  Gov- 
ernment. 

2.  Clock  watches  are  separately  classified.    A  clock  watch  is  simply 
a  combination  of  wheels  without  jewels  or  adjustments.    It  probably 
has  been  timed  in  a  general  way,  but  it  is  not  comparable  as  an 
effective  time-keeping  machine  with  a  jeweled  watch. 

3.  Seventeen- jewel  movements  are  classified  according  to  adjust- 
ments.    Seventeen-jewel  movements  are  manufactured  adjusted  and 
unadjusted.    The  7-jewel,  11-jewel,  and  15-jewel  movements  are  al- 
most universally  unadjusted,  and  are  so  regarded  by  the  trade.    All 
movements  having  over  17  jewels  are  universally  adjusted.     A  17- 
jewel  adjusted  movement  will  cost,  to  produce  and  will  sell  for  just 
about  three  times  what  a  17-jewel  unadjusted  movement  will  cost  and 
sell  for.     From  a  revenue-producing  standpoint  of  protection  the 
classification  of  17-jewel  movements  as  written  in  the  Fordney  bill 
should  be  retained. 


218  DIGEST   OF   TARIFF   HEARINGS,   H.    R.   7456. 

4.  The  specific  duties  provided  on  all  grades  are  no  higher,  on  an 
average,  than  the  duties  provided  in  the  act  of  1909. 

5.  The  duties  are  based  on  prewar  conditions. 

6.  The  marking  provisions  are  practically  the  same  as  in  the  act  of 
1909.     This  requirement  is  made  for  the  purpose  of  stopping  the 
fraud  resulting  from  bringing  in  a  17-jewel  movement  marked  "  7  " 
jewels  and  then  engraving  the  numeral  "  1 "  in  front  of  the  numeral 
"  7  "  after  the  movement  has  been  cleared,  thus  defrauding  the  Gov- 
ernment. 

Witnesses:  The  South  Bend  Watch  Co.,  South  Bend,  Ind.;  the 
Hampden  Watch  Co.,  Canton,  Ohio;  and  the  Hamilton  Watch  Co., 
Lancaster,  Pa.  (Briefs;  no  joint  appearance  at  hearings.) 

NOTE. — The  three  briefs,  being  identical,  are  treated  together. 

Size  of  industry, — In  1914  there  were  15  establishments  engaged 
in  the  manufacture  of  watches,  with  an  output  for  the  year  valued 
at  $14,275,000.  There  have  been  no  new  watch  movement  factories 
started  in  this  country  for  perhaps  15  or  20  years,  but  the  value  of 
the  output,  as  stated  in  a  letter  from  Mr.  W.  M.  Steuart,  director  of 
the  United  States  Census,  had  increased  in  1919  to  about  $32,044.000. 

Rates  suggested — Paragraph  367  of  H.  R.  7456  to  be  adopted  with- 
out change.  American  manufacturers  of  watch  movements  ask  for 
rates  of  duty  equalizing  the  differences  in  American  and  foreign 
costs.  In  view  of  the  fact  that  from  80  to  90  per  cent  of  the  cost  of 
producing  watch  movements  in  this  country  is  labor,  such  rates  will 
be  of  advantage  to  American  workmen  to  perhaps  a  far  greater 
extent  than  to  the  manufacturers.  The  rates  in  H.  R.  7456  are  ex- 
ceedingly fair,  the  paragraph  is  well  written  and  well  balanced,  and 
no  changes  should  be  made  in  the  paragraph. 

Remarks. — The  rates  in  the  proposed  bill  (H.  R.  7456)  are  as 
near  the  rates  provided  in  the  act  of  1909  as  they  could  be  fairly 
figured  out  upon  a  specific  rate  basis.  The  marking  provisions  of 
H.  R.  7456  are  identical  with  the  marking  provisions  of  the  act  of 
1909  so  far  as  the  number  of  marks  and  figures  required  to  be 
stamped  upon  the  plate  is  concerned.  The  bill,  also,  contains  the 
exact  language  of  the  act  of  1913  as  to  marking  provisions,  except 
that  it  adopts  the  provision  of  the  act  of  ^K)9  requiring  the  number 
of  jewels  and  adjustments  to  be  stamped  both  in  words  and  in  Arabic 
numerals.  There  are,  therefore,  no  new  marking  provisions  in  the 
proposed  law. 

The  fact  that  imports  have  increased  from  $1,951,579  in  1913  to 
$12.608.624  in  1920  (that  is  to  say,  by  $10.657,045)  is  evidence  as  to 
whether  or  not  the  provisions  of  the  various  tariff  acts  have  been 
unfair  to  importers.  On  the  other  hand,  exports  of  American-made 
watches  increased  bv  only  $372,720. 

Data  submitted  show  that  importations  of  foreign-made  watches 
into  the  United  States  are  about  equal  to  the  domestic  production. 

Importers  recommend  a  rate  of  $150  each  on  the  classification 
riaving  more  than  11  and  not  more  than  15  jewels.  This  would 
amount  to  a  reduction  over  the  act  of  1909  of  35  cents  each,  and 
would  reduce  the  per  cent  rate  to  at  least  as  low  as  the  ad  valorem 
rate  in  the  act  of  1913. 

Unadjusted  movements  cost  to  produce,  and  will  sell  for,  about 
one-third  what  the  adjusted  movement  will  cost  and  sell  for.  There- 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  219 

fore,  17-jeweled  movements  should  be  classified  as  set  out  in  H.  R. 
7456. 

There  are  two  reasons  why  the  word  "unadjusted"  should  be 
marked  upon  the  movement:  (1)  To  protect  the  Government  in  the 
collection  of  duties,  and  (2)  to  protect  the  consumer  against  fraud. 
If  the  movement  is  cleared  without  such  marking  the  importer 
can  defraud  the  public,  afterwards,  by  marking  upon  the  plate  words 
and  figures  indicating  adjustments;  the  profit  from  such  misrepre- 
sentations would  be  very  large.  The  present  law  requires  that  "  un- 
adjusted "  movements  be  so  marked. 

A  comparison  between  H.  R.  7456  and  the  act  of  1909  shows  that 
the  rate  provided  in  H.  R.  7456  of  $2.75  each  on  unadjusted  17-jewel 
movements  is  a  decrease  by  percentage  over  the  act  of  1909  for  every 
year  except  one.  On  adjusted  movements,  the  rates  provided  in 
H.  R.  7456  show  on  each  classification  a  percentage  of  increase,  and 
on  the  last  classification  of  17-jewel  movements  the  percentage  of 
increase  is  quite  material.  The  increases  in  the  adjusted  movements 
are  explained  upon  the  ground  that  the  importations  were  cleared 
as  "unadjusted"  movements.  If  they  had  been  cleared  upon  the 
basis  of  the  classification  in  H.  R.  7456,  or  upon  their  true  value,  the 
increases  would  not  be  material. 

A  specific  duty  of  $5  on  all  movements  having  more  than  17 
jewels,  as  recommended  by  the  importers,  would  be  a  reduction  of 
about  100  per  cent  from  the  duties  provided  in  the  act  of  1909,  and 
a  very  material  reduction  in  the  rates  of  the  act  of  1913. 

Evidence  shows  that  about  one-half  of  the  foreign  material  im- 
ported is  imitation  American  watch  material,  imported  to  be  used 
for  repairing  American  watches.  The  use  of  this  material  for  repair- 
ing high-grade  American  watches  results  in  unsatisfactory  work  and 
in  injury  to  the  reputation  of  both  the  jeweler  who  did  the  work  and 
the  manufacturer  of  the  repaired  watches.  It  is  not  believed  that 
the  duty  on  material  should  be  reduced,  because  imported  material 
comes  into  competition  with  American  material,  and  such  reduction 
would  increase  the  amount  of  imitation  material  imported,  to  the 
detriment  of  consumers,  jewelers,  and  American  manufacturers. 

The  manufacture  of  jewels  in  the  United  States  has  never  been 
successfully  conducted,  although  a  great  deal  of  money  has  been  ex- 
pended in  the  endeavor.  Jewels,  therefore,  are  to  the  American 
manufacturer  of  watch  movements  the  same  as  raw  material,  and  in 
practically  every  instance  about  50  per  cent  of  the  value  of  the  ma- 
terial in  the  movements  is  in  the  jewels.  The  duty  of  10  per  cent 
provided  in  H.  R.  7456  is  a  fair  revenue  duty  and  should  not  be 
increased. 

With  regard  to  timers,  attention  is  called  to  the  fact  that  there  is 
little  difference  between  a  timer  and  a  watch  movement.  Some 
American  manufacturers  have,  during  the  past  few  years,  made  quan- 
tities of  timers  by  using  their  regular  movements  with  certain  me- 
chanical changes,  and  it  would  be  an  easy  matter  for  the  foreign 
manufacturer  to  make  practically  all  his  high-grade  watches  with  a 
timing-device  feature.  To  adopt  the  importers'  recommendation 
with  regard  to  timers  would  leave  a  loophole  for  bringing  in  high- 
grade  movements  at  $1  each. 

The  value  of  watch  movements  in  this  country  is  determined  by  the 
number  of  jewels  and  adjustments,  which  also  fix  the  standard.  For- 


220  DIGEST   OF   TARIFF   HEARINGS,  H.   R.   7456. 

eign  manufacturers,nby  false  marking,  either  before  or  after  the 
movement  has  been  cleared,  use  the  number  of  jewels  and  adjust- 
ments as  a  blind  for  extorting  exorbitant  profits,  and  thousands  of 
people  are  cheated  yearly  through  this  fraud. 

The  features  that  make  the  watch  a  good  timepiece  can  not  be  dis- 
covered by  an  external  examination,  however  critical.  Comprehen- 
sive marking  provisions  and  specific  duties,  such  as  are  provided  in 
H.  R.  7456,  are  the  only  safeguard. 

The  American  w7atch  industry  has  had  a  struggle  in  this  country 
from  the  beginning.  Competition  from  abroad  has  been  severe. 
Skilled  labor  has  been  hard  to  secure,  difficult  to  train,  expensive  and 
hard  to  hold.  Imports  increased  by  millions  because  the  foreign 
manufacturer  was  able  to  secure  labor,  highly  skilled,  at  a  low  rate, 
while  the  American  manufacturer  was  compelled  to  pay  high  wages 
and  train  his  own  workmen. 

Hearings:  Pages  1989-2004. 

Witness:  Mr.  Emil  N.  Zolla,  representing  the  watch  importers  of 
the  United  States. 

Costs  and  selling  prices. — Since  1919  watchmakers  in  Switzerland 
are  working  only  48  hours  a  week  instead  of  56,  which  means  that  the 
cost  of  labor,  due  to  this  alone,  has  increased  20  per  cent.  The 
average  cost  of  labor  to-day  in  Switzerland,  figured  in  gold,  is  be- 
tween $25  and  $35  per  week,  and  adjusters  are  paid  as  high  as  $50  a 
week.  The  duty  rates,  as  recommended  in  the  accompanying  brief, 
are  equivalent  to  an  ad  valorem  rate  of  at  least  40  per  cent,  and  in  a 
few  instances  more  than  that.  Adding  40  per  cent  to  the  wages  of  the 
lowest-paid  watchmaker  to-day  in  Switzerland — which  is  $25 — would 
make  the  total  $35  for  the  lowest-priced  man.  To  this  $35  per  week 
must  be  added  at  least  another  30  per  cent,  being  the  minimum  of  the 
importer's  gross  profit,  making  a  total  of  at  least  $45  per  week.  The 
average  wage  earned  by  the  American  watchmaker  is  to-day  between 
$35  and  $40  per  week,  with  such  factories  as  the  Waltham  and  others 
very  recently  announcing  a  reduction  of  from  10  to  15  per  cent  in  the 
wages  of  their  men. 

Siz&  of  industry. — In  1914  there  were  15  establishments  engaged  in 
the  manufacture  of  watches,  with  an  annual  output  valued  at  $14,- 
275,000.  In  1919  there  were  36  establishments,  with  an  output  valued 
at  $32,100,000. 

Watch-case  factories  in  the  United  States  turn  out  approximately 
19,000  cases  a  day.  In  1914  the  total  value  of  the  output  of  case  fac- 
tories was  $7,831,000,  and  in  1919  it  was  $19,619,000. 

Rates  suggested. — Watch  movements,  whether  imported  in  cases  or 
otherwise,  assembled  or  knocked  down  for  reassembling,  if  having  less 
than  7  jewels,  70  cents  each;  having  7  jewels  and  not  more  than  11 
jewels,  $1.25  each;  having  more  than  11  and  not  more  than  16  jewels, 
$1.50  each;  having  17  jewels,  $2.50  each;  having  more  than  17  jewels, 
$5  each;  watch  cases,  25  per  cent  ad  valorem;  parts  of  watches,  in- 
cluding jewels  and  dials  for  use  in  the  manufacture  of  watches,  15 
per  cent  ad  valorem ;  chronometers,  box  or  ship,  $5  each ;  parts  there- 
of, 15  per  cent  ad  valorem ;  timers  designed  and  constructed  to  time 
comparative  rates  of  speed,  $1  each :  Provided,  That  all  watch  dials, 
whether  attached  to  movements  or  not,  when  imported  shall  have 
indelibly  painted  or  printed  thereon  the  name  of  the  country  of 
origin,  and  that  all  watch  movements  and  plates  assembled  or  knocked 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  221 

down  for  reassembling,  and  cases,  shall  have  the  name  of  the  manu- 
facturer and  the  country  of  manufacture  cut.  engraved  or  die-sunk 
conspicuously  and  indelibly  on  the  plate  of  the  movement  and  the 
insicle  of  the  case,  respectively,  and  the  movement  and  the  plates  shall 
also  have  marked  thereon,  by  one  of  the  methods  indicated,  the  num- 
ber of  jewels,  said  numbers  to  be  expressed  either  in  words  or  in 
Arabic  numerals,  and  none  of  the  aforesaid  articles  shall  be  deliv- 
ered to  the  importer  unless  marked  in  exact  conformity  to  this  direc- 
tion: Provided  further^  That  only  the  number  of  the  jewels  which 
serve  a  mechanical  service  as  fricitional  bearings  shall  be  marked  as 
herein  provided. 

The  reasons  for  substituting  the  above-mentioned  recommendations 
in  place  of  the  duties  recommended  in  paragraph  367  of  the  Fordney 
bill  are  as  follows : 

Watchcases  are  separated  from  watch  parts,  etc.,  because  a  watch- 
case  is  a  finished  article,  consisting  frequently  of  gold  or  silver  on 
which  the  cost  of  labor  has  already  entered,  while  watch  parts,  for 
all  practical  purposes,  are  similar  to  raw  material.  The  reason  a 
rate  lower  by  15  per  cent  is  recommended  is  that,  with  possibly  one 
or  two  exceptions,  not  a  single  watchcase  company  would  ask  for  a 
higher  rate  than  20  per  cent.  Not  only  are  foreign  case  manufac- 
turers unable  to  compete  successfully  with  American  case  manufac- 
turers, but  the  latter  are  to-day  successfully  competing  in  Europe 
with  the  former. 

Chronometers  are  omitted  from  the  classification  of  "  watch  parts  " 
as  this  is  a  completed  article  and  does  not  belong  among  "  parts." 

Jewels  and  dials  are  included  in  the  classification  for  parti?  because 
they  are  undoubtedly  "  parts  of  watches,"  and  no  differentiation  in 
the  rates  of  duty  should  be  made. 

The  ad  valorem  duty  on  "  watch  parts  "  should  be  reduced  to  15 
per  cent,  which  will  provide  a  reasonable  revenue.  As  the  "  watch 
parts  "  imported  are  used  for  movements  imported  from  abroad,  and 
are  therefore  in  no  form  or  manner  in  competition  with  watch  parts 
for  American  movements,  there  can  be  no  need  for  giving  any  pro- 
tection. 

Timers  are  not  manufactured  at  all  in  this  country,  and  as  90  per 
cent  of  all  the  timers  imported  are  used  by  the  United  States  Govern- 
ment it  is  believed  that  this  article  should  have  a  separate  classi- 
fication. 

These  rates  closely  approximate  the  schedule  of  the  act  of  1909, 
which  was  admittedly  a  high  tariff  bill.  Being  so  close  to  that  sched- 
ule, they  are,  particularly  under  the  present  economic  conditions  of 
the  world,  sufficient  for  revenue  purposes  and  more  than  sufficient 
for  "  protection  "  to  the  American  watch  industry. 

Reference  to  "  position  adjustment "  classifications  among  17-jewel 
movements  has  been  omitted  in  the  above-mentioned  recommenda- 
tions. It  is  an  arbitrary  classification  contained  in  no  other  tariff 
bill  and  a  distinction  made  by  no  other  country  in  the  world.  To 
retain  it  would  be  to  bar  absolutely  the  importation  of  this  class  of 
movements.  It  would  mean  an  increase  of  over  100  per  cent  over  the 
rates  of  the  act  of  1909. 

Position  adjustments  do  not  of  themselves  determine  the  value  of 
the  watch.  Every  watch,  in  order  to  run  and  keep  time,  must  be 
adjusted.  Three  adjustments  of  a  watch  are  practically  the  lowest 


222  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

number  of  adjustments  possible  for  any  timepiece  with  any  degree 
of  dependability. 

The  average  cost  of  two  jewels  to  American  watch  manufac- 
turers— bought  by  them  in  large  quantities  from  Switzerland — is  less 
than  50  cents. 

The  net  result,  therefore,  of  the  Fordney  bill  as  passed  by  the 
House  is,  that  while  calling  for  a  duty  of  $2  on  15-jewel  watches  of 
three-position  adjustments  it  calls  for  a  duty  of  $4.75  for  the  same 
watch  with  two  additional  jewels.  In  other  words,  it  adds  a  duty 
of  $2.75  for  two  jewels.  In  the  case  of  the  same  17-jewel  watch  ad- 
justed to  five  positions — which  simply  means  that  the  watch  is  further' 
adjusted  to  two  more  angles — there  is  a  difference  of  $4.50  for  the 
additional  two  jewels. 

The  present  act  (1913)  provides  for  the  marking  of  the  number  of 
jewels  and  adjustments  of  watch  movements — "either  in  words  or 
in  Arabic  numerals."  The  Fordney  bill  has  changed  the  word  "  or  " 
to  "  and,"  so  that  the  language  of  the  bill  reads  "  said  numbers  to  be 
expressed  in  words  and  in  Arabic  numerals."  To  retain  the  language 
in  the  Fordney  bill  as  it  passed  the  House  would  make  it  impossible 
to  import  the  very  small  movements,  some  of  which  measure  less  than 
one-fourth  of  an  inch  across  the  dial.  To  put  on  so  small  a  movement 
the  name  of  the  country  of  origin,  the  name  of  the  manufacturer,  and, 
in  addition  to  that,  the  number  of  the  jewels  and  adjustments  in  both 
words  and  Arabic  numerals,  would  be  physically  impossible. 

In  the  phraseology  of  the  stamping  provisions  the  words  "and 
clock,"  also  "  Lever-clock  movements  with  jewels  in  the  escapement," 
have  been  omitted  in  the  above-mentioned  recommendations  as  these 
provisions  properly  belong  in  the  clock  schedule.  In  the  same  pro- 
viso there  has  been  omitted  the  following  sentence :  "  and  if  the  move- 
ment is  not  adjusted,  the  word  '  unadjusted '  shall  be  marked  thereon 
by  one  of  the  methods  indicated."  The  reasons  for  omitting  this  last 
sentence  is  that  stampings  should  be  only  affirmative  representations 
and  not  negative.  While  the  manufacturer  should  be  held  to  strict 
accountability  for  all  affirmative  representations  made  he  ought  not 
to  be  compelled  to  make  a  negative  representation.  Provisions  of 
this  kind  afford  no  protection  whatsoever  to  American  manufacturers 
but  are  extremely  mischievous  in  their  nature  and  are  designed  to 
cause  as  much  inconvenience  as  possible  to  American  importers. 

Witness:  The  American-Swiss  Watch  Co.  (Inc.),  Peekskill,  K  Y. 
(Brief;  no  appearance  at  hearings.) 

Comparability. — In  1906-1908  it  was  found  that  manufacturing 
costs  in  the  watch  business  were  approximately  the  same,  for  corre- 
sponding grades  of  watch  movements,  in  the  United  States  and  in 
Switzerland. 

The  cost  of  living  in  Switzerland  at  the  present  time  is  as  high 
as,  if  not  higher  than,  in  the  United  States;  watchmakers'  wages  are 
higher  than  ever  and,  in  addition,  Swiss  manufacturers  have  to  con- 
tribute toward  the  support  of  their  workers  when  factories  are 
working  half  time  or  shut  down  completely.  In  1908,  the  president 
of  this  company  was  told  by  a  watch  manufacturer  that  the  factory 
of  which  he  was  vice  president  was  producing  a  15-jewel  movement 
at  a  certain  price  and  was  also  making  up,  at  an  additional  cost  of 
25  cents,  the  very  same  movement  in  17  jewels,  which  brought  $5 
additional  for  the  two  jewels. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  223 

Rates  suggested. — The  present  (act  of  1913)  rates  of  duty  on 
"watches  more  than  protect  the  domestic  industry.  The  wording  as 
to  markings  on  watch  movements  and  cases,  as  provided  for  in  the 
act  of  1913,  is  ample. 

Remarks. — If  domestic  watch  manufacturers  recognize  advan- 
tages in  the  marking  of  the  number  of  jewels  and  positions  on  the 
movement  plates  in  both  letters  and  numerals,  it  appears  that  they 
would  put  the  idea  into  practice  on  their  own  movements,  and  thus 
make  it  impossible  for  some  unscrupulous  jewelers  to  change  the 
markings  on  American  movements,  to  be  sold  at  a  higher  price. 

All  additional  marking  provisions  on  watch  movements,  beyond 
those  in  the  act  of  1913.  would  serve  no  useful,  decent  purpose. 

Clean,  healthy  competition  will  benefit  the  American  watch  buy- 
ing public.  It  will  likewise  benefit  the  American  watch  industry  as 
an  industry,  since  reasonable  competition  will  force  domestic  manu- 
facturers to  produce  a  high-grade  watch,  sold  on  its  merits,  instead 
of  relying  on  artificial  classification. 

Witness :  Mr.  Frank  D.  Pavey,  attorney,  representing  clients. 
(Brief;  no  appearance  at  hearings.) 

Remarks. — The  new  requirements  in  regard  to  markings  upon  im- 
ported watch  movements,  in  H.  E.  7456,  serve  no  purpose  except  to 
impose  additional  burdens  and  expense  either  upon  the  manufac- 
turers or  the  importers  of  Swiss  watches.  They  are  wholly  unneces- 
sary for  the  purpose  of  determining  the  value  of  the  watch — a  factor 
capable  of  exact  determination  by  other  and  simpler  means.  How- 
ever, if  the  Committee  on  Finance  decides  to  retain  them,  they  ought 
to  be  made  to  take  effect  not  less  than  four  months,  and  preferably 
six  months,  after  the  date  of  the  enactment  of  the  bill.  This  would 
enable  importers,  in  placing  new  orders,  to  impose  the  cost  of  these 
markings  on  the  manufacturers.  So  far  as  orders  already  given  are 
concerned,  it  is  a  great  injustice  to  importers  to  impose  a  new  require- 
ment of  this  character,  as  they  will  have  to  pay  the  cost  of  the  addi- 
tional markings  on  goods  ordered  but  not  yet  shipped.  Goods  which 
have  already  been  shipped  by  the  manufacturers  will  have  to  be  re- 
turned to  the  manufacturers  in  order  to  have  them  marked  and  re- 
shipped  to  the  importers. 

PARAGRAPH  368. — CIXJCKS. 
WITNESSES. 

FAVORING  PROPOSED  OR  HTOIIFR  DUTIES  : 

The  New  Haven  Clock  Co.,  New  Haven,  Conn.     (Brief.) 
FAVORING  LOWER  DUTIES  : 

The  Kuehl  Clock  Co..  Chicago.  111.     (Brief.) 

The  Western  Clock  Co.,  La  Salle,  111.     (Brief.) 

Witness :  The  New  Haven  Clock  Co.,  New  Haven,  Conn.  (Brief; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — Manufacturing  costs  in  Germany  are  less 
than  in  the  United  States  because  of  the  low  wages  paid  to  workers 
abroad.  German  wages,  in  different  lines  of  activity,  range  from 
$2.48  per  week  for  female  shop  help  to  $3.64  for  pattern  makers  and 


$5.37  for  cabinet  makers. 


224  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

Size  of  industry. — The  American  clock  industry  employs  upwards 
of  15,000  wage  earners.  Factories  are  located  in  Ohio,  Illinois,  New 
York,  Massachusetts,  and  Connecticut. 

Remarks. — American  valuation  is  essential,  because  at  present  ex- 
change rates  no  American  clock  manufacturer  can  stand  the  competi- 
tion with  foreign  goods.  It  is  also  necessary  to  prevent  the  practice 
of  undervaluation.  The  exchange  situation  is  acting  steadily  to 
transfer  the  workshops  of  the  world  to  Germany. 

In  view  of  the  fact  that  an  income  tax  and  an  excess-profits  tax 
are  paid  by  American  manufacturers  to  the  Government,  certain 
arrangements  should  be  made  about  foreign  competing  goods  being 
dumped  on  the  market  at  their  low  cost  just  to  raise  money.  The 
exemption  of  foreign  factories  from  taxes  on  profits  (because  of 
the  separation  of  these  into  small  amounts)  works  a  hardship  upon 
the  American  manufacturer  and  should  be  taken  into  consideration. 

Since  the  great  falling  off  in  business  in  this  country,  it  has  been 
impossible  to  run  clock  factories  at  their  full  production  and  some 
are  now  shut  down  temporarily.  Meanwhile,  when  there  seems  again 
to  be  a  little  beginning  of  demand,  it  is  being  supplied  from  foreign 
sources. 

German  clock  factories  are  rapidly  reaching  their  prewar  efficiency 
and  quantity  production.  German  clock-making  machinery  is  fully 
equal  to  American  machinery,  much  of  it  having  been  copied  from 
American  patterns.  The  crux  of  the  demand  for  protection  (after 
other  conditions  have  become  normal)  is  that  of  labor,  which  is  paid 
here  approximately  three  times  as  much,  even  at  present,  as  in  for- 
eign countries.  Without  tariff  protection,  the  wages  of  clock  work- 
ers must  be  leveled  with  those  of  Germany,  which  would  reduce  their 
pay  below  a  fair  living  wage  for  an  American  wage  earner. 

Persistent  undervaluation  in  invoices  is  estimated  by  a  Govern- 
ment representative  to  cost  the  United  States,  in  lo^s  of  duties,  from 
$10.000,000  to  $40,000,000  a  year.  The  infamous  system  of  "Car- 
tels" has  been  revived  by  Germany  since  the  war  and  is  now  flour- 
ishing with  renewed  vigor.  Trade  combinations  there  are  encour- 
aged, and  trade  organizations  urge  their  members  to  conceal  the  true 
foreign  values  from  United  States  consuls  and  Treasury  agents. 

The  brief  refers  to  the  tariff  increases  now  being  made  by  leading 
European  countries. 

Witness:  The  Kuehl  Clock  Co.,  Chicago.  111.  (Brief;  no  appear- 
ance at  hearings.) 

Costs  and  selling  prices. — Before  the  war,  alarm  clocks  were  sold 
by  American  producers  at  prices  ranging  from  40  to  45  cents  each. 
At  the  present  time  these  clocks  are  offered  by  American  manufac- 
turers at  85  cents  to  $1  each.  The  present  price  of  an  imported  alarm 
clock,  comparable  with  these,  is  65  cents  without  duty  and  other 
charges. 

Assuming  that  this  alarm  clock  can  be  purchased  abroad  for  50 
cents,  the  duty  of  35  cents  specific  and  35  per  cent  ad  valorem,  based 
on  the  American  valuation  of  85  cents  to  $1.  would  amount  to  65 
cents,  making  a  total  landing  cost  of  $1.15.  without  taking  into  con- 
sideration freight,  insurance,  and  incidental  charges.  This  would  be 
the  bare  expense  without  including  selling  and  general  expense  and 
profit.  It  is  impossible  to  figure  out  what  this  clock  could  be  sold 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  225 

for  in  the  American  market,  but  it  is  apparent  that  it  could  not  be 
imported  at  all. 

Kates  suggested. — It  is  suggested  that  cuckoo  clocks  be  separately 
classified  and  a  rate  of  duty  lower  than  for  other  clocks  provided, 
because  they  form  a  distinct  and  separate  article  of  trade,  not  com- 
peting with  or  replacing  any  other  kind  of  clock.  They  are  not  now, 
and  never  have  been  to  any  extent,  produced  in  the  tlnited  States, 
and  it  is  extremely  doubtful  whether  the  particular  things  which  go 
to  make  up  the  attractiveness  and  desirability  thereof  ever  could  be 
produced  here. 

The  American  producer  of  clocks  is  at  no  disadvantage  with  the 
imported  clock,  with  the  present  rate  of  duty  at  30  per  cent.  If  he 
could  compete  with  imported  clocks  before  the  war,  it  is  evident 
that  he  is  fully  able  to  compete  now  with  the  foreign  article  in 
this  market. 

It  is  suggested  that  the  specific  rates  provided  in  H.  R.  7456,  for 
clocks  having  no  jewels  in  the  escapement,  be  eliminated,  leaving  the 
ad  valorem  rate  of  35  per  cent  to  stand. 

Remarks. — Alarm  clocks  are  purchased  in  this  country  largely  by 
people  of  moderate  means,  whose  every-day  requirements  make  the 
alarm  clock  an  essential  feature.  An  increase,  therefore,  in  the  price 
to  the  consumer  results  only  in  the  enhancement  of  the  profit  made 
by  the  manufacturer. 

Exports  of  clocks  (of  all  kinds)  from  the  United  States  before 
and  after  the  war  were  largely  in  excess  of  imports.  Thus,  in  1913 
exports  were  approximately  25  per  cent  greater  than  imports,  and 
in  1920  exports  were  eight  times  in  value  that  of  imports.  It  is 
manifest  that  an  industry  exporting  eight  times  in  value  the  imports 
needs  no  additional  protection  to  enable  it  to  compete  with  foreign- 
made  goods. 

There  is  no  objection  to  stamping  on  the  dials  the  name  of  the 
country  of  origin,  but  there  is  nothing  to  be  gained  from  the  addition 
of  the  "manufacturer's  name.  Indeed,  to  do  so  would  be  practically 
impossible  on  many  sizes  and  varieties  of  clocks.  Several  foreign 
factories  have  names  so  long  that  even  the  ordinary  size  dial  would 
not  be  large  enough  to  contain  all  the  information  required  by  this 
paragraph,  without  mentioning  the  numbers  essential  to  the  telling 
of  the  time.  The  name  of  the  foreign  maker  neither  adds  anything 
to  the  selling  value  of  the  clock  nor  takes  anything  theref  rom^in  the 
presence  of  the  name  of  the  country  of  origin  on  the  dial. 

It  is  asked,  therefore,  that  the  requirement  of  marking  on  the 
dials  of  clocks,  having  no  jewels  in  the  escapement,  be  confined  to  the 
name  of  the  country  of  origin.  No  objection  is  made  to  the  marking 
or  stamping  on  the  front  or  back  plates,  as  provided  for  in  the  bill. 

Witness:  The  Western  Clock  Co.,  La  Salle,  111.  (Brief;  no  ap- 
pearance at  hearings.) 

Remarks. — The  rates  of  duty  on  clocks,  in  H.  R.  7456,  do  not  seem 
to  be  equitable.  For  example,  clocks  costing  $1.05  would  be  assessed 
at  35  per  cent,  or  36J  cents  duty.  Clocks  costing  $1.15  would  be 
assessed  at  35  per  cent,  or  40J  cents,  and  in  addition  70  cents,  or  a 
total  duty  of  $1.10|.  This  would  mean  that  a  difference  in  value  of 
10  cents  per  clock  would  make  a  difference  in  duty  of  73£  cents  per 
clock. 


226  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

It  is  desirable  to  know  on  what  basis  the  valuation  for  additional 
duty  of  $1.10  was  arrived  at.  In  the  manufacture  of  the  product  of 
the  Western  Clock  Co.,  which  is  substantially  the  same  line,  clocks 
are  made  costing  just  below  and  above  $1.10  and  the  reason  is  not 
apparent  why  the  division  should  be  taken  arbitrarily  at  that  figure. 

PARAGRAPH  371. — BICYCLES  AND  MOTOR-CYCLE  SADDLES. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  • 

Mr.  L.  V.  Fauver,  representing  between  75  and  80  per  cent  of  the  bicycle  and 
motor-cycle  saddle  manufacturers  of  America ;  address,  Elyria,  Ohio. 

Hearings :  Pages  2030-2031. 

Size  of  industry, — The  industry  is  very  narrow  and  rather  small, 
the  value  of  the  output  not  normally  exceeding  $1,500,000  per  year. 
For  the  past  year  it  has  been  substantially  closed  down. 

Rates  suggested. — Not  less  than  30  per  cent  on  American  valuation. 
The  witness  is  fully  in  sympathy  with  the  request  of  the  motor-cycle 
industry  that  parts  of  motor  cycles  be  classified  separately  from  com- 
plete motor  cj^cles.  There  is  no  reason  for  manufacturers  of  leather 
being  classified  with  the  motor-cycle  industry. 

Saddle  manufacturers  do  not  wish  to  be  included  in  the  reduction 
requested  by  the  motor-cycle  industry. 

PARAGRAPH  371. — MOTOR  CYCLES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Walter  Davidson,  president  of  the  Harley-Davidson  Motor  Co.,  repre- 
senting motor  cycle  manufacturers  of  the  country;  address,  Milwaukee, 
Wis. 

Mr.  William  G.  McCann.  representing  the  Hendee  Manufacturing  Co.; 
address,  Springfield,  Mass. 

Hearings:  Pages  2023-2026. 

Witness:  Mr.  W.  Davidson,  representing  motor  cycle  manufac- 
turers of  the  country. 

Size  of  industry. — There  are  seven  active  firms  in  the  United 
States,  with  an  invested  capital  of  $18,000,000  and  a  pay  roll  of 
$9,000,000  for  6,000  employees.  During  the  year  1920  they  produced 
about  68,000  complete  motor  cycles. 

Rates  suggested. — Fifteen  per  cent  ad  valorem,  with  the  following 
clause  added : 

When  imported  from  a  country  which  imposes  a  duty  greater  than  15  per  cent 
the  duty  would  be  equal  to  the  duty  of  the  foreign  country,  but  not  to  exceed  50 
per  cent. 

It  was  requested  that  complete  motor  cycles  should  be  considered 
separately  from  bicycles  and  parts  of  motor  cycles  and  bicycles. 
There  is  no  connection  in  the  United  States  between  the  motor  cycle 
and  bicycle  industries,  and  parts  of  both  machines  are  subject  to 
much  more  severe  foreign  competition  than  are  complete  motor 
cycles. 

The  industry  meets  practically  no  competition  outside  of  the 
United  States;' only  41  motor  cycles  were  imported  in  1920,  but  over 
50  per  cent  of  the  domestic  production  in  1920  was  exported.  Tha 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  227 

industry  depends  largely  on  the  export  business,  and  it  is  hoped 
that  a  lowering  of  American  duties  may  aid  the  efforts  which  the 
industry  is  making  to  obtain  reductions  in  the  tariffs  of  foreign 
countries  to  which  a  large  portion  of  its  output  is  sold.  Any  duty 
higher  than  is  necessary  to  give  the  American  industry  reasonable 
protection  will  tend  to  retard  the  development  of  American  motor 
cycle  business  in  foreign  markets. 

Hearings :  Pages  2026-2030. 

Witness :  Mr.  W.  G.  McCann,  representing  the  Hendee  Manufac- 
turing Co. 

Size  of  industry. — Since  1913  the  production  and  domestic  con- 
sumption have  decreased,  while  the  export  business  has  increased. 
The  Hendee  Co.  should  employ  2,000  men,  but  during  the  last  few 
months  it  has  operated  with  only  about  300  or  400  on  a  half-time 
basis. 

Comparability. — England  and  the  United  States  are  the  two  motor 
cycle  producers  of  the  world.  The  English  output  is  confined  chiefly 
to  the  small  types  of  machines.  There  are  also  good  machines  made 
in  Germany,  but  domestic  manufacturers  do  not  fear  German  com- 
petition. 

Rates  suggested. — The  witness  continues  the  argument  of  Mr. 
Davidson,  requesting  a  reduction  of  the  duty  to  15  per  cent.  Many 
countries  (England,  Belgium,  Canada,  Italy,  Australia,  Spain,  India, 
and  Korea)  have  put  in  force  excessively  high  tariffs,  which  have 
greatly  hindered  the  development  of  American  export  to  these  coun- 
tries, and  it  is  hoped  that  a  reduction  of  the  American  duty  will 
furnish  effective  propaganda  for  the  reduction  of  foreign  tariffs. 

Such  a  reduction  will  not  result  in  a  large  increase  in  importation: 
The  manufacturers  of  motor  cycles  in  this  country  do  not  fear  foreign 
competition,  but  rather  invite  it,  as  it  would  help  in  the  development 
of  the  industry. 

PARAGRAPH  372. — TEXTILE  MACHINERY. 

WITNESS,  AND  INTEREST  REPRESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  Joseph  F.  Lockett,  representing  Leigh  &  Butler,  importers;  address, 
Boston,  Mass. 

Hearings:  Pages  1839-1851. 

Costs  and  selling  prices. — Leigh  &  Butler  represent  Messrs.  Platt 
Bros.,  of  England,  the  largest  builders  of  textile  machinery  in  the 
world.  The  cost  of  Platt's  machinery  at  the  British  shops  is  nearly 
50  per  cent  higher  than  the  prices  charged  by  American  manufac- 
turers for  similar  machinery.  Sales  in  the  past  few  years,  in  nearly 
every  instance,  have  been  at  prices  higher  than  those  of  American 
machines  and  have  been  possible  only  because  of  the  insistence  of  the 
domestic  mills  upon  having  Platt's  machinery. 

An  importer  was  recently  asked  to  bid  on  the  equipment  for  a 
small  mill;  the  foreign  quotation  was  nearly  $1,250,000,  while  the 
American  producer  quoted  about  $500,000. 

Labor  costs  in  England  for  textile  machinery  are  about  twice  what 
they  are  in  this  country ;  it  was  said  not  long  ago  by  an  official  con- 
nected with  one  of  the  largest  American  machine  builders  that  the 


228  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

labor  cost  per  machine  for  textile  machinery  was  less  in  the  United 
States  than  in  England. 

Prices  in  England  have  increased  since  1909  over  200  per  cent, 
while  the  pound  has  depreciated  oifly  about  35  per  cent.  Platt's 
prices  in  1909  were  list  less  15  per  cent,  in  1915  they  were  list  less 
5  per  cent,  and  the  average  peak  advance  since  then  has  been  list 
plus  200  per  cent. 

Size  of  industi*y. — Platt  Bros,  in  England  employ  about  12,000 
persons. 

Comparability. — Platt's  machinery  is  world  famous  for  its  con- 
struction, durability,  and  efficiency.  It  will  last  longer  and  require 
less  repairs  than  American  machinery.  The  bulk  of  the  imported 
product  is  used  by  American  cotton  and  worsted  mills.  There  are 
some  mills  that  will  use  only  Platt's  and  the  bulk  of  users  of  cotton- 
mill  machinery  prefer  the  foreign  machinery  if  they  can  get  it  at 
a  fair  price.  For  most  of  Platt's  machinery  imported  in  the  past 
10  years  a  premium  has  been  paid  by  the  consumer  in  order  to 
obtain  it. 

Rates  suggested. — Free  list.  There  is  no  real  competition  between 
English  and  American  machine  builders  as  to  price.  The  major 
part  of  English  textile  machinery  could  never  compete  with  Ameri- 
can machinery  as  to  price  unless  Congress  should,  in  addition  to  plac- 
ing it  on  the  free  list,  grant  a  substantial  bonus  to  the  importer. 

The  value  of  the  imports  of  textile  machinery  during  each  of  the 
years  1916,  1917,  1918  was  the  approximate  cost  of  fitting  up  one 
small  mill  of  about  25,000  spindles. 

PARAGRAPH  372. — WATCHMAKERS'  LATHES. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Moseley  Lathe  Co.,  Elgin,  111.     (Two  briefs,  of  July  15  and  October  22, 
1921,  respectively;  no  appearance  at  hearings.) 

Comparability. — The  price  of  the  Moseley  lathe  with  ten-chuck 
combination  is  now  $90.  This  is  $10  less  than  the  price  in  1919.  al- 
though wages  have  since  been  reduced  not  more  than  5  to  10  per  cent. 
The  W.  W.  lathe,  10-chuck  combination,  and  the  Derbyshire  (both 
made  in  Waltham,  Mass.)  are  $86.35.  A  German  imitation  of  these 
lathes,  the  Boley  lathe,  is  being  steadily  imported  into  this  country 
and  is  listed  at  $45.  The  German  lathe  copies  the  American  design 
and  is  strictly  competitive  as  regards  quality. 

Rates  suggested.— A.  high  protective  tariff  of  200  to  300  per  cent 
on  the  basis  of  foreign  valuation ;  under  the  American  valuation  plan, 
a  rate  materially  higher  than  35  per  cent. 

PARAGRAPH  372. — SHUTTLES  FOR  SEWING  MACHINES,  ETC. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

J.  A.  Coates  &  Sons  (Ltd.),  manufacturers  of  needles,  etc.,  East  Orange, 
N.  J.     (Brief;  no  appearance  at  hearings.) 

Size  of  industry. — Outside  of  the  sewing  machine  manufacturers 
there  is  only  one  concern  in  America  making  sewing  machine  shut- 
tles— the  Johnson  Shuttle  Co.,  Chicago,  111. 


DIGEST   OF   TARIFF   HEARINGS,  H.   R.    7456.  229 

Retnarks. — The  Johnson  Shuttle  Co.'s  prices  are  exorbitant  be- 
cause of  the  lack  of  competition.  Their  prices  are  300  per  cent  higher 
to-day  than  before  the  war,  and  they  are  not  obliged,  as  others  are, 
to  come  down  in  their  prices,  because  there  is  no  one  to  underbid  them. 

PARAGRAPH  374. — ALUMINUM,  CRUDE,  SCRAP,  AND  ALLOTS.       < 

WITNESSES,  AND  INTEKESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Aluminum  Co.  of  America.     (Brief.) 
FAVORING  LOWER  DUTIES  : 

Mr.  Harris  E.  Galpin,  representing  the  National  Aluminum  Foundries'  As- 
sociation. 

Mr.  Lawrence  M.  Brile,  representing  Brile  &  Ratner  (Inc.),  New  York  City. 

Witness:  The  Aluminum  Co.  of  America.  (Brief;  no  appearance 
at  hearings.) 

Comparability. — The  company's  price  for  ingot  aluminum,  sub- 
stantially less  than  cost,  is  20  cents  per  pound.  In  November,  1921, 
German  quotations  for  98  to  99  per  cent  virgin  aluminum  ranged 
from  16^  to  17  cents  and  for  99  per  cent,  17  to  17^  cents.  Both  France 
and  Germany  would  probably  accept  a  large  order  at  16  cents  or  a 
shade  less.  Norway  is  quoting  18  cents,  but  a  small  producer  in 
Switzerland  asks  17  cents.  The  chief  producers  in  Switzerland  and 
Great  Britain  are,  however,  holding  closely  to  the  American  com- 
pany's prices.  The  European  cost  of  making  aluminum  is  substan- 
tially less  than  the  cost  in  the  United  States.  It  takes  5  tons  of 
bauxite,  worth  approximately  $50,  to  produce  1  ton  of  aluminum. 
The  European  manufacturer  has  an  enormous  advantage,  his  raw  ma- 
terial and  transportation  costs  being  trivial  as  compared  with  those 
paid  in  the  United  States.  In  this  country,  the  haul  from  the  mines 
to  the  smelting  plants  will  average  about  1,100  miles,  while  in  France, 
for  example,  the  haul  is  approximately  only  150  miles.  American 
bauxite  is  inferior,  containing  an  average  of  55  per  cent  of  alumina 
as  compared  with  62  per  cent  in  the  European.  The  latter  also  con- 
tains only  3  per  cent  of  silica,  whereas  the  American  contains  8  or  9 
per  cent.  The  removal  of  silica  from  bauxite  is  one  of  the  most  ex- 
pensive operations  in  the  whole  process  of  manufacture.  The  over- 
head expense  of  the  Aluminum  Co.  of  America  is  over  6  cents  per 
pound,  and  there  is  an  additional  interest  charge  of  nearly  6  cents, 
resulting  from  the  investment  by  the  company  of  a  little  less  than  $1 
for  each  pound  of  aluminum  produced  in  a  year. 

European  producing  capacity  was  largely  increased  during  the 
war,  and  present  relative  capacities  are  approximately  as  follows: 

Pounds  per  annum. 

England 26, 000, 000 

France 37,  000,  000 

Germany 76,  000, 000 

Austria 10,  000,  000 

Switzerland 52, 000,  000 

Italy 15,  000, 000 

Norway 48s  000, 000 


Total 264,  000,  000 

72134—22 16 


230  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Even  in  normal  times  the  above  countries  can  consume  only  a  frac- 
tion of  their  production,  and  in  several  of  the  countries  consumption 
is  negligible.  At  the  present  time  almost  their  entire  surplus  is  des- 
tined for  sale  in  the  United  States,  since  there  is  no  substantial  con- 
sumption elsewhere  in  Europe,  Asia,  Africa,  etc.  In  1911  the  world 
consumption  of  aluminum  outside  of  the  United  States  was  55,000.000 
pounds,  or  about  one-fifth  of  the  aggregate  foreign  capacity  as  given 
above.  It  is  doubtful  if  the  present  foreign  consumption  is  even  as 
great  as  in  1911.  The  present  producing  capacity  of  the  United 
States  is  approximately  180,000,000  pounds  per  annum,  which  com- 
pares with  the  maximum  consumption  (1920)  of  approximately  170,- 
000,000  pounds,  reduced  in  1920  to  only  75,000,000.  Imports  during 
1921,  based  on  the  statistics  of  the  first  six  months,  have  been  at  the 
rate  of  45,000,000  pounds  per  arinum,  or,  roughly,  one-half  the  total 
consumption.  The  principal  importations  come  from  Germany, 
France,  and  Switzerland — production  in  all  of  which  countries  is 
protected  by  tariff  or  the  more  prohibitive  barrier  of  importation 
licenses.  The  French  tariff  is  6.57  cents  per  pound  on  ingot,  9.81 
cents  on  sheet,  and  13.84  cents  on  wire  and  cable  at  normal  rates  of 
exchange.  Importation  into  Germany  is  absolutetly  prohibited. 

Size  o£  industry. — During  the  last  13  months  the  Aluminum  Co. 
of  America  has  borrowed  $30,000,000,  used  principally  to  carry  the 
heavy  stock  of  aluminum  which  it  has  been  unable  to  sell  against 
foreign  competition.  On  January  1,  1921,  it  employed  over  20,000 
men ;  11  months  later  it  had  only  8,000.  The  company  is  not  a  com- 
bination or  a  merger.  It  created  the  aluminum  industry,  and  during 
its  33  years  of  existence  has  never  bought,  or  merged  with,  an 
aluminum  plant.  All  of  its  plants  have  been  built  with  its  own 
money,  most  of  it  earned  in  the  business.  During  the  last  30  years 
it  has  made  on  an  average  15^  per  cent  per  annum  on  the  capital  in- 
vestment. Of  this,  2^  per  cent  has  been  paid  in  dividends  and  13 
per  cent  put  back  into  the  business.  Its  profits  have  come  largely 
from  fabricated  goods,  which  have  thus  reached  the  consumer  with 
but  a  single  profit. 

Hearings :  Pages  2044-2046. 

Witness:  Mr.  H.  E.  Galpin,  representing  the  National  Aluminum 
Foundries'  Association. 

Costs  and  selling  prices. — The  selling  prices  of  aluminum  foundry 
products  are  influenced  largely  by  the  price  of  the  raw  material — 
aluminum — the  domestic  production  and  supply  of  which  are  mo- 
nopolized by  one  concern — the  Aluminum  Co.  of  America. 

It  is  written  in  the  history  of  that  company  that  the  price  of  its 
product  has  been  based  upon  the  price  of  aluminum  in  Europe  plus 
freight  and  duty. 

There  is  a  point  at  which  the  desirability  of  aluminum  as  a  metal 
may  be  subverted  by  the  price  which  must  be  secured  for  castings; 
that  point  being  passed,  customers  will  look  for  and  turn  to  another 
metal. 

Size  of  industry. — The  National  Aluminum  Founders'  Association 
represents  about  14  or  15  independently  owned  aluminum  foundries, 
with  an  invested  capital  of  approximately  $9,000,000  or  $10,000.000, 
and  employing  normally  between  9,000  and  10,000  men.  These 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  231 

foundries  are  not  owned,  controlled  or  connected  by  stock  ownership 
with  the  Aluminum  Co.  of  America.  The  membership  of  the  or- 
ganization represents  about  35  or  40  per  cent  of  the  foundry  produc- 
tion business  in  the  United  States.  Probably  30  per  cent  of  the  re- 
maining 60  or  65  per  cent  of  the  business  is  controlled  by  the  subsid- 
iary companies  of  the  Aluminum  Co.  of  America. 

There  are  between  40  and  50  such  foundries  in  the  United  States, 
besides  many  small  ones  (one-man  foundries)  which,  if  included, 
would  make  the  total  perhaps  200  or  300. 

Rates  suggested. — Any  increase  in  the  present  rate  of  duty  (2 
cents  per  pound)  is  opposed;  the  duty,  if  not  wholly  removed,  should 
at  least  be  left  on  its  present  basis.  In  no  event  "should  any  but  a 
specific  rate  be  imposed. 

In  view  of  the  situation  at  the  present  time,  it  is  contended  that 
the  independent  manufacturers  in  the  aluminum  foundry  industry 
should  not  be  limited  by -a  prohibitive  tariff  to  one  source  of  raw 
material  supply,  which  would  be  the  effect  if  paragraph  374  of  the 
Fordney  bill,  in  its  present  form,  became  law. 

Hearings :  Pages  2031-2043. 

Witness:  Mr.  L.  M.  Brile,  representing  Brile  &  Ratner  (Inc.). 

Costs  and  selling  prices. — The  overhead  charges  of  6  cents  plus 
interest  charges  of  6  cents,  a  total  of  12  cents,  claimed  by  Mr.  Davis 
as  representing  the  costs  of  the  Aluminum  Co.  of  America,  are  false. 
In  support  of  this  statement  he  cited  the  average  price  of  crude 
aluminum  from  1910  to  1914,  inclusive,  as  21.61  cents  per  pound, 
whereas  in  1914  the  average  price  was  18.595  cents.  Deducting  12 
cents  from  the  latter  figure  leaves  only  6.595  cents  per  pound,  out  of 
which  the  American  Co.  had  to  pay  for  its  raw  material,  production 
costs,  and  profit.  When  placing  some  bond  issues,  Mr.  Davis  stated 
that  in  no  year  since  1915  had  the  earnings  of  his  company  been  less 
than  $10,000.000.  Although  the  earnings  for  1914  are  not  available, 
it  is  known  that  the  investment  of  the  company  has  increased  from 
$30,000,000  in  1913  to  $200,000,000  at  present,  all  out  of  earnings. 
Assuming,  however,  $10,000,000  earnings  for  1914  and  an  output  of 
90,000,000  pounds,  the  profit  alone  per  pound  would  amount  to  ap- 
proximately 11.25  cents;  if  the  12  cents  overhead  and  depreciation 
charge  be  added  to  this,  the  total  is  23.25  cents  as  compared  with  a 
selling  price  of  18.595  cents,  with  no  allowance  for  raw  material  or 
direct  production  costs.  The  witness  further  asserts  that  foreign 
producers  are  subject  to  overhead  and  depreciation  charges  as  well. 
He  also  charges  that  the  Aluminum  Co.  of  America  maintains  prices 
at  just  about  the  importation  level.  The  quantity  of  aluminum  uti- 
lized in  industry  would  be  materially  increased  if  it  were  cheaper. 

Rates  suggested. — The  rate  on  sheets,  circles,  etc.,  should  be  not 
more  than  1|  cents  per  pound  in  excess  of  the  duty  on  ingot.  Prior 
to  the  war  witness  could  roll  sheets  for  5  cents  and  coils  for  4  cents 
per  pound ;  perhaps  one-third  of  this  cost  was  for  labor.  He  also 
suggests  that  "coils"  (aluminum  sheets  or  strips  in  rolls)  be  spe- 
cifically mentioned. 


232  DIGEST  OF  TARIFF  HEARINGS,  H.  R.  7456. 

PARAGRAPH  378 — ROLLED  BRASS  AND  COPPER  PRODUCTS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVOKING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frank  H.  Hoffman,  representing  the  Detroit  Copper  &  Brass  Rolling 
Mills  and  the  American  Brass  and  Copper  Statistical  Exchange,  compris- 
ing 15  manufacturers. 

Hearings :  Pages  2047-2053. 

Costs  and  selling  prices. — The  minimum  German  wages  are  60 
marks  and  the  maximum  80  marks  per  day,  respectively  equivalent 
to  70  and  90  cents.  Common  labor  in  British  plants  receives  about 
23  cents  an  hour.  Wages  in  American  plants  are  45  cents  an  hour. 
The  French*  labor  scale  is  about  one-third  of  the  domestic.  Copper 
sheets  sell  for  19£  to  50  cents  a  pound ;  seamless  tubes  from  19  to  65 
cents  a  pound,  small  sizes  going  from  29  cents  to  $4.70  per  pound. 
Brazed  copper  tubes  vary  in  price  from  30  cents  to  $1.40  per  pound. 
Sheet  brass  sells  for  from  15£  to  55|  cents ;  seamless  brass  tubes  from 
18  to  64  cents,  and  tubing  from  28  cents  to  $4.60  per  pound.  Brazed 
brass  tubes  are  priced  from  27  cents  to  $1.37  a  pound,  brazed 
rods  and  sheets  from  16  to  55  cents,  and  seamless  brazed  tubes 
from  22  to  68  cents  a  pound.  The  paragraph  in  H.  R.  7456  dealing 
with  copper  and  brass  manufactures  placed  a  poundage  rate  on  all 
of  these  products,  regardless  of  value.  The  value  depends  upon  the 
size  of  the  sheet  or  the  diameter  of  the  tube,  on  special  tempering 
processes  used  in  the  manufacture,  on  special  finishes  and  other 
factors,  in  all  of  which  labor  plays  an  important  part. 

Size  of  industry. — The  copper  and  brass  industry  is  very  large ; 
it  is  essential  to  the  national  welfare.  Production  units  are  expen- 
sive, require  heavy  machinery,  and  large  labor  organizations.  They 
can  not  be  assembled,  on  short  notice  and  expansion  is  necessarily  slow. 
The  products  of  this  industry  are  vitally  important  to  domestic 
welfare  in  times  of  war  and  enter  largely  into  the  manufacture  of 
munitions.  They  are  also  important  components  of  automobiles 
and  other  machinery.  Domestic  plants,  while  formerly  at  a  dis- 
advantage in  competition  with  the  foreigner  because  of  the  higher 
labor  wages  paid  here,  had  an  advantage  because  of  more  up-to-date 
machinery.  The  foreigner  has,  however,  been  busy  for  some  time 
in  copying  American  methods  of  copper  and  brass  manufacture. 
The  representative  of  a  prominent  English  manufacturer  spent 
considerable  time  in  this  country  and  familiarized  himself  with 
American  practice  and  equipment.  All  foreign  nations  producing 
brass  and  copper  products  are  preparing  to  compete  in  the  American 
market. 

Rates  suggested. — The  following  rates  on  copper  and  brass  rods 
in  place  of  the  rates  proposed  in  H.  R.  7456,  because  of  the  difference 
in  prices  discussed  under  "  Costs  and  selling  prices  " : 

Sheet  copper,  both  hot  and  cold  rolled,  in  the  form  of  sheets,  plates,  etc., 
all  lengths,  but  not  over  36  inches  wide;  heavier  than  24  ounces  per  square 
foot,  4  cents  per  pound ;  more  than  14  and  not  more  than  24  ounces  per  square 
foot,  6  cents  per  pound ;  more  than  12  and  not  more  than  14  ounces  per  square 
foot,  8  cents  per  pound ;  12  ounces  or  less  per  square  foot,  11  cents  per  pound ; 
in  addition  to  above  duties,  1  cent  per  pound  for  widths  between  36  and  72 
inches,  and  2  cents  additional  for  widths  over  72  inches;  sheet  copper  not  in- 
cluded in  above  and  coated  with  tin.  and  polished.  12  cents  per  pound ;  copper 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  233 

engravers'  plate,  not  ground,  8  cents  per  pound ;  copper  engravers'  plates, 
ground  and  polished,  16  cents  per  pound. 

Copper  in  rolls  or  coils:  All  widths  over  2  inches,  No.  23  Brown  &  Sharpe 
gauge  and  heavier,  4  cents  per  pound ;  less  than  No.  23  but  not  less  than  No.  26 
Brown  &  Sharpe  gauge,  5  cents  per  pound ;  less  than  No.  26  but  not  less  than 
No.  31  Brown  &  Sharpe  gauge,  6  cents  per  pound;  less  than  No.  31  but  not 
less  than  No.  34  Brown  &  Sharpe  gauge,  1  cents  per  pound ;  less  than  No.  34 
Brown  &  Sharpe  gauge,  10  cents  per  pound;  in  widths  2  inches  and  under, 
also  not  specified  above,  12  cents  per  pound. 

Sheet  brass  and  sheet  bronze,  brass  and  bronze  plates,  Muntz  and  yellow 
metal  sheets  and  sheathing,  widths  2  to  16  inches;  No.  24  Brown  &  Sharpe 
gauge  and  heavier,  4  cents  per  pound ;  less  than  No.  24  but  not  less  than  No.  30 
Brown  &  Sharpe  gauge,  5  cents  per  pound ;  less  than  No.  30  but  not  less  than 
No.  33  Brown  &  Sharpe  gauge,  6  cents  per  pound ;  less  than  No.  33  Brown  & 
Sharpe  gauge,  9  cents  per  pound;  all  other  widths  and  gauges  not  specified 
above,  11  cents  per  pound. 

Brass  and  copper  rods,  bars,  and  strips,  bolts,  piston  rods,  and  shafting  and 
brass  wire:  Over  five-eighths  inch  in  diameter  or  equal  cross  section,  2$  cents 
per  pound;  three-sixteenths  to  five-eighths  inch  in  diameter  or  equal  cross 
section,  3$  cents  per  pound ;  one-eighth  to  three-sixteenths  inch  in  diameter  or 
equal  cross  section,  4  cents  per  pound ;  No.  11  Brown  &  Sharpe  gauge  to  one- 
eighth  inch  in  diameter  or  equal  cross  section,  if  rectangular,  6  cents  per 
pound ;  not  specified  above,  8  cents  per  pound. 

Seamless,  brazed,  and  lock-seam  or  lapped  tubes  and  pipes  in  copper,  brass, 
and  bronze :  Heavier  than  li  to  4£  inches,  inclusive,  outside  diameter,  and 
No.  14  Stubs  gauge  and  heavier,  5  cents  per  pound ;  three-eighths  to  1£  inches, 
inclusive,  outside  diameter,  and  No.  14  Stubs  gauge  and  heavier,  9  cents  per 
pound;  three-eighths  to  li  inches  outside  diameter,  inclusive,  and  No.  14 
Stubs  gauge  and  heavier,  10  cents  per  pound;  more  than  1  inch  to  4  inches 
outside  diameter,  inclusive,  and  lighter  than  No.  14  Stubs  gauge,  but  not  lighter 
than  No.  24  Stubs  gauge,  15  cents  per  pound;  three-eighths  to  1  inch  outside 
diameter,  inclusive,  and  lighter  than  No.  14  Stubs  gauge,  but  not  lighter  than 
No.  24  Stubs  gauge,  16  cents  per  pound ;  larger  than  4  inches  outside  diameter 
and  lighter  than  No.  14  Stubs  gauge,  20  cents  per  pound. 

Seamless  drawn  brass,  bronze,  and  copper  tubing :  One-eighth  to  1  inch  in 
diameter,  both  inclusive,  No.  18  to  No.  28  Brown  &  Sharpe  gauge,  both  inclusive, 
20  cents  per  pound ;  one-eighth  to  1  inch  in  diameter,  both  inclusive,  No.  28  to 
No.  35  Brown  &  Sharpe  gauge,'  both  inclusive,  40  cents  per  pound ;  smaller  than 
one-eighth  inch  in  diameter,  No.  19  to  No.  35  Brown  &  Sharpe  gauge,  both  in- 
clusive, 60  cents  per  pound. 

All  copper  and  copper  alloys  wherein  copper  is  the  principal  component  part 
not  otherwise  specified  in  the  above  schedules,  12  cents  per  pound. 

The  specific  duties  asked  for  in  no  case  amount  to  more  than  40 
per  cent  on  American  valuation.  Duties  on  sheet  copper  run  from  18 
to  30  per  cent,  with  an  average  of  24.  Copper  in  sheets,  rolls,  and 
coils  runs  from  20  per  cent  to  32  per  cent,  with  an  average  of  26.  On 
sheet  brass  and  plates  and  brazed  sheets  and  plates  the  duties  run 
from  24  to  30  per  cent,  with  an  average  of  28.  On  brazed  rods  and 
brass  wire  they  run  from  18  to  32  per  cent,  with  an  average  of  25, 
and  on  tubes  and  pipes  from  24  to  40  per  cent,  with  an  average  of 
30.  The  duties  asked  on  manufactures  of  copper  and  alloys  of  copper 
not  otherwise  specified  amount  to  25  per  cent. 

PARAGRAPH  378. — COPPER,  BRASS,  AND  BRONZE  WIRES. 

WITNESS. 

REQUESTING  RECLASSIFICATION  : 

The    Standard    Underground    Cable   Co.,    of    Pittsburgh,    Pa.      (Brief;    no 
appearance  at  hearings.) 

Rates  suggested. — It  is  urged  that  copper,  copper-clad,  brass,  and 
bronze  wires  be  classified  under  paragraph  316  as  eventually  adopted 


234  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

by  the  House,  and  not  included  in  paragraph  378  under  any  specific 
rate,  as  suggested  by  the  American  Brass  and  Copper  statistical 
Exchange. 

Although  the  suggested  rate  of  4  cents  per  pound  is  sufficiently 
high  for  some,  of  the  larger  base  sizes,  it  is  entirely  inadequate  for 
the  finer  sizes  of  wire.  Assuming  even  as  low  a  price  as  14  cents 
base  for  brass  or  bronze  wire,  and  with  a  No.  30  wire  taking  an  ad- 
vance of  10  cents  above  base,  a  specific  rate  of  4  cents  per  pound  on 
the  valuation  of  24  cents  would  be  about  16|  cents,  while  at  20  per 
cent  ad  valorem  it  would  be  4.8  cents.  Experience  indicates  that 
foreign  competition  would  be  principally  in  the  finer  sizes  of  wire, 
as  recognized  in  the  amendment  of  the  Ways  and  Means  Committee 
to  have  these  reinstated  in  paragraph  316  at  an  ad  valorem  rate. 
While  a  specific  duty  is  naturally  most  desirable  for  some  products, 
it  would  not  be  applicable  to  these  wires,  of  which  there  are  about 
40  sizes,  each  size  representing  different  manufacturing  costs  and  all 
fluctuating  with  the  general  market  conditions. 

PARAGRAPH  379. — BRONZE  POWDER. 

WITNESSES. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

The  Bronze  Powder  Manufacturers'  Association.     (Brief.) 
FAVORING  LOWER  DUTIES: 

Leo  Uhlf elder  Co.,  New  York  City.     (Brief.) 

Witness:  The  Bronze  Powder  Manufacturers'  Association,  Eliza- 
beth, N.  J.  (Brief;  no  appearance  at  hearings.) 

Size  of  industry. — The  association  comprises  nine  manufacturers — 
five  in  New  Jersey  and  one  each  in  Connecticut,  New  York,  Pennsyl- 
vania, and  Ohio.  Four  of  these  firms  were  in  business  before  the 
war,  supplying  about  one-half  the  bronze  powder  used  in  the  United 
States.  Two  of  these  four  have  increased  their  capacity  until,  in- 
cluding the  five  new  plants,  the  total  capacity  of  American  bronze- 
powder  factories  now  exceeds  the  domestic  consumption.  The  nine 
manufacturers  are  in  active  competition  with  one  another  besides 
competing  with  German  products. 

Comparability. — Under  some  government  agency,  all  the  German 
manufacturers  are  organized  into  a  combination,  \vhich  fixes  the 
prices  at  which  these  goods  are  to  be  sold  in  the  respective  foreign 
countries.  These  prices,  as  fixed  in  March,  1921,  for  shipping  to 
other  countries,  are,  in  marks,  double  the  prices  at  which  these  goods 
are  sold  to  consumers  in  the  United  States.  German  competition  is 
naturally  severe,  owing  to  cheap  labor,  but  with  the  deliberate  effort 
to  undersell  in  America,  indicated  by  fixing  the  price  at  one-half  that 
to  other  countries,  competition  without  a  very  high  tariff  is  almost 
impossible.  German  bronze  powder  is  being  sold  for  export  into 
the  United  States  at  20  marks  net  per  pound.  Packing  and  trans- 
portation makes  the  cost  of  delivery  here  about  45  cents  per  pound. 
As  against  this  it  costs  American  manufacturers  65  cents  per  pound, 
of  which  the  cost  of  the  copper  alloy  (raw  material)  is  20  cents, 
manufacturing  30  cents,  packing  and  transportation  5  cents,  selling 
and  overhead  10  cents.  American  manufacturers  believe  that  al- 
though the  German  workman  receives  only  about  one-sixth  of  the 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  235 

wages  paid  in  this  country,  the  German  manufacturers  are  losing 
money  on  the  bronze  powder  exported  to  the  United  States,  and  that 
this  loss  is  taken  care  of,  through  the  syndicates,  out  of  profits  made 
in  business  in  other  foreign  countries. 

The  above  remarks  apply  to  bronze  powders  made  from  copper 
alloy  and  known  in  the  trade  as  gold  bronzes.  Aluminum  bronze 
powder  is  made  by  three  of  the  companies  represented  in  this  brief 
and  by  other  manufacturers  in  this  country.  Like  gold  bronze  pow- 
der, it  is  used  for  decorative  purposes,  but  it  is  also  employed  in  fire- 
works, rockets,  and  certain  explosives.  In  case  of  war-time  necessity 
every  plant  manufacturing  gold  bronzes  could  utilize  the  same  ma- 
chinery for  making  aluminum  bronze  powder. 

Rates  suggested. — "  The  bronze-powder  manufacturers  agree  with 
the  Tariff  Commission  that  a  specific  duty  is  more  practical  than  an 
ad  valorem  rate.  They  suggest  that  in  addition  to  a  permanent  duty 
there  should  be  devised  some  method  to  prevent  '  dumping '  by  an 
automatic  increase  of  duty." 

Witness:  Leo  Uhlfelder  Co.,  New  York  City.  (Brief;  no  appear- 
ance at  hearings.) 

Rates  suggested. — The  rates  on  bronze  powder  in  the  Fordney  bill 
to  be  reduced  to  between  8  cents  and  12  cents  per  pound,  which 
"  would  be  about  sufficient  to  protect  the  American  industry."  The 
firm  asserts  that  the  German  bronze-powder  manufacturers  are  im- 
mense users  of  American  copper,  and  that  the  loss  of  this  export 
trade  would  more  than  offset  any  injury  done  to  the  American  bronze- 
powder  industry,  employing,  as  it  does,  less  than  200  people,  most  of 
whom  are  foreigners. 

PARAGRAPH  380. — GOLD  LEAF. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   F.   W.   Rauskolb,   representing  the  United   States  Gold  Leaf  Manu- 
facturers' Association. 
Mr.  Frederick  Pyre,  manufacturer  of  gold  leaf,  Philadelphia,  Pa.    (Brief.) 

Hearings :  Pages  2054-2055. 

Witness :  Mr.  F.  W.  Rauskolb. 

Costs  and  selling  prices. — Labor  costs  in  the  United  States,  per 
100  leaves  of  gold  leaf ,  are  $1.16.  Labor  in  Germany  for  the  same 
product  costs  11.4  cents,  a  difference  of  $1.046  per  100  leaves.  Wages 
paid  in  the  United  States  are  $44  a  week  per  man  as  against  the  Ger- 
man rate  of  300  marks  or  $4.50  (the  mark  at  H  cents) .  The  weekly 
production  per  man  is  5,000  leaves  of  gold.  The  raw  material  is  gold, 
having  the  same  value  here  as  in  Germany.  German  and  Japanese 
prices  for  500  leaves  of  gold  leaf  are  $8.25. 

Rates  suggested. — One  dollar  per  100  leaves  of  gold  leaf,  3|  by  3| 
inches,  this  duty  being  necessary  to  counteract  the  advantage  held 
by  the  foreign  manufacturer  of  $1.04  per  100  leaves  in  his  labor  cost. 

Witness :  Mr.  Frederick  Pyre,  manufacturer  of  gold  leaf,  Phila- 
delphia, Pa.  (Brief;  no  appearance  at  hearings.) 

Comparability. — Labor  costs  in  this  country  and  in  Germany,  for 
100  leaves,  are,  respectively,  $1.16  and  $0.114. 


236  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Rates  suggested. — A  duty  of  $1  per  100  leaves  (being  or  equivalent 
to  3|  by  3f  inches)  and  proportionately.  This  does  not  quite  equal- 
ize labor  costs. 

PARAGRAPH  382. — TINSEL  WIRE,  LAME  OR  LAHN. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  George  M.  Montgomery,  representing  the  J.  R.  Montgomery  Co.,  manu- 
facturers, Windsor  Locks,  Conn. 

FAVORING  LOWER  DUTIES: 

Mr.  B.  Wilmsen,  Philadelphia,  Pa.,  representing  himself. 

Hearings :  Pages  2056-2057. 

Witness:  Mr.  G.  M.  Montgomery,  representing  the  J.  R.  Mont- 
gomery Co. 

Rates  suggested. — A  brief  submitted  by  the  witness  asserts  that 
in  the  printing  of  H.  R.  7456  an  error  crept  into  the  text  of  paragraph 
382  which  entirely  changes  the  meaning  of  certain  clauses.  The  text 
proposed  reads : 

Tinsel  wire,  lame  or  lahn,  made  wholly  or  in  chief  value  of  gold,  silver,  or 
other  metal,  10  cents  per  pound  and  25  per  cent  ad  valorem;  bullions  and 
metal  threads,  made  wholly  or  in  chief  value  of  tinsel  wire,  lame  or  lahn,  10 
cents  per  pound  and  35  per  cent  ad  valorem ;  ribbons,  beltings,  toys,  or  other 
articles  made  wholly  or  in  chief  value  of  tinsel  wire,  lame  or  lahn,  or  of  tinsel 
wire,  lame  or  lahn,  and  India  rubber,  bullions,  or  metal  threads,  not  specially 
provided  for  in  this  section  60  per  cent  ad  valorem ;  woven  fabrics,  fringes,  and 
tassels,  made  wholly  or  in  chief  value  of  any  of  the  foregoing,  70  per  cent  ad 
valorem. 

whereas  in  the  bill  as  reported  by  the  Ways  and  Means  Committee 
it  reads: 

Tinsel  wire,  lame,  or  lahn,  made  wholly  or  in  chief  value  of  gold,  silver,  or 
other  metal,  10  cents  per  pound  and  30  per  cent  ad  valorem ;  bullions  and  metal 
threads  made  wholly  or  in  chief  value  of  tinsel  wire,  lame  or  lahn,  10  cents 
per  pound  and  35  per  cent  ad  valorem ;  ribbons,  beltings,  toys,  and  other  articles 
made  wholly  or  in  chief  value  of  tinsel  wire,  lame  or  lahn,  and  India  rubber, 
bullions,  or  metal  threads,  not  specially  provided  for,  45  per  cent  ad  valorem ; 
woven  fabrics,  fringes,  and  tassels  made  of  any  of  the  foregoing,  55  per  cent 
ad  valorem. 

The  error  lies  in  the  omission  on  page  82,  line  18,  of  this  bill,  of 
the  words  "  or  of  tinsel  wire,  lame,  or  lahn  "  after  the  word  "  lahn." 
The  brief  proposes  also  the  addition  of  the  words  "  wholly  or  in  chief 
value  "  after  the  words  "  and  tinsels,  made."  These  changes  would 
clarify  the  meaning  of  the  paragraph  and  obviate  possible  litigation. 

Remarks. — In  a  supplementary  brief,  filed  subsequent  to  the  testi- 
mony of  Mr.  Wilmsen  (pp.  2056-2057)  the  Montgomery  Co.  asserts 
that  during  the  war  they  manufactured  most  of  the  tinsel  used  in  this 
country,  oince  the  war  they  have  made  about  one-third,  the  balance 
being  supplied  by  other  domestic  manufacturers  and  by  imports. 
The  company  denies  emphatically  that  their  product  is  inferior  to 
the  imported  article  and  declares,  further,  that  the  highest  price 
charged  by  them  to  Mr.  Wilmsen  or  others  purchasing  tinsel,  during 
or  since  the  war  years,  was  $280  per  case  of  100  kilos.  The  shipment 
mentioned  by  Mr.  Wilmsen  may  have  been  purchased  through  New 
York  jobbing  houses,  in  which  case  it  would  be  impossible  to  deter- 
mine its  origin.  Tinsel  to-day  may  be  landed  in  New  York  without 


DIGEST   OF   TARIFF   HEARINGS,   H.   E.   7456.  237 

duty  for  $160  per  case  of  100  kilos.     The  domestic  article  is  selling 
at  the  present  time  for  $205  f .  o.  b.  manufacturing  plants. 

Hearings :  Pages  2055-2056. 

Witness :  Mr.  H.  Wilmsen,  representing  himself. 

Costs  and  selling  prices. — The  present  import  price  of  tinsel  is  about 
$190  per  case  of  100  kilos ;  applying  the  rate  of  6  per  cent,  as  specified 
in  the  Underwood  Act  (equivalent  to  $11.40)  and  adding  a  charge 
of  $1  per  case  for  haulage  and  freight,  the  landed  price  becomes 
$202.40.  When  deliveries  were  not  being  made  from  abroad,  witness 
was  forced  to  turn  to  the  American  manufacturer,  who  charged  him 
$425  per  case  of  100  kilos  for  inferior  tinsel. 

Size  of  indust?*y. — There  are  three  toy  and  Christmas-tree  factories 
in  the  United  States,  one  in  Philadelphia,  one  in  Baltimore,  and  the 
other  in  Manitowoc,  Wis.  These  employ  about  500  persons. 

Comparability. — Domestic  tinsel  is  inferior  to  the  imported  article. 

Rates  suggested. — The  rate  of  5  cents  per  pound  on  tinsel  wire, 
lame  or  lahn,  as  provided  in  the  acts  of  1897  and  1909  should  be 
restored  on  the  ground  that  duties  as  proposed  in  H.  R.  7456  will 
force  domestic  manufacturers  to  use  tinsel  wire  under  the  absolute 
control  of  the  only  manufacturer  of  it  in  the  United  States.  The 
specific  rate  would  permit  importers  readily  to  determine  the  amount 
of  duty  to  be  paid,  would  eliminate  litigation,  and  relieve  the  United 
States  appraising  officers  of  considerable  difficulty  in  determining 
values. 

Remarks. — A  brief,  supplementing  the  testimony  of  Mr.  George 
M.  Montgomery  (pp.  2056-2057),  bears  upon  certain  parts  of  the 
foregoing  testimony. 

PARAGRAPH  383. — QUICKSILVER. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Hon.  Samuel  Shortridge,  United  States  Senator  from  California.     (Brief; 
no  appearance  at.  hearings.) 

Costs  and  selling  prices. — England  for  years  has  controlled  the 
quicksilver  market,  as  the  output  of  the  mines  of  Spain,  the  largest 
and  richest  in  the  world,  is  under  contract  to  the  Rothschilds  at  a 
figure  much  below  the  cost  of  production  in  the  United  States. 

Size  of  industry. — Quicksilver  is  produced  in  four  countries — 
Spain,  Italy,  Austria,  and  the  United  States. 

Rates  suggested. — The  tariff  provided  in  H.  R.  7456  will  enable 
sufficient  mines  to  operate  to  supply  the  demand  and  save  these  mines 
to  the  country  in  case  of  war. 

Remarks. — The  writer  submits  a  copy  of  a  letter  written  by  the 
Hon.  John  W.  Weeks,  Secretary  of  War,  to  the  Committee  on  Ways 
and  Means,  House  of  Representatives,  setting  forth  the  importance 
of  quicksilver  in  the  manufacture  of  war  munitions,  drugs,  chemicals, 
and  certain  electrical  equipment,  and  referring  to  the  capability  of 
the  domestic  industry  to  meet  the  normal  peace  demands  of  the  coun- 
try. It  is  pointed  out,  however,  that  it  may  be  but  a  short  time  be- 
fore these  demands  can  no  longer  be  met  from  domestic  supplies, 
this  being  possible  because  of  the  steady  reduction  in  producing 


238  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   1456. 

mines,  brought  about  by  the  prevailing  high  cost  of  labor  and  sup- 
plies and  declining  market  prices.  The  opinion  is  expressed  that 
protection  of  the  quicksilver  industry  is  essential  to  the  needs  of 
the  country,  and  a  tariff  sufficiently  high  to  maintain  it  in  times  of 
peace  is  recommended  to  that  end. 

PARAGRAPH  385. — NICKEL. 

WITNESS. 

REQUESTING  RECXASSIFICATION  : 

The  American  Brass  and  Copper  Statistical  Exchange.     (Brief;  no  appear- 
ance at  hearings.) 

Specific  provision  is  requested  for  nickel  silver  and  tin  bronze 
sheets  and  rods  by  inserting  the  following  additional  paragraphs : 

Sheet  nickel  silver  and  alloys  of  copper  containing  tin,  widths  over  2  inches 
and  including  16  inches  No.  24  Brown  &  Sharpe  gauge  and  heavier,  8  cents  per 
pound;  thinner  than  No.  24  but  not  thinner  than  No.  30  Brown  &  Sharpe 
gauge,  10  cents  per  pound ;  all  other  gauges  and  widths,  15  cents  per  pound. 

Nickel  silver  rods  and  rods  of  copper  alloys  containing  tin,  not  under  f  inch 
in  diameter  or  equivalent  cross  section,  10  cents  per  pound ;  not  under  -ft  to  § 
inch,  13  cents  per  pound ;  not  under  %  to  1%  inch,  15  cents  per  pound ;  and  under 
i  inch  but  not  under  No.  11  Brown  &  Sharpe  gauge,  19  cents  per  pound. 

PARAGRAPH  386.— PIG  TIN. 

WITNESS. 

FAVOBING  LOWER  DUTIES  : 

The  National  Association  of  Dairy  Supply  Houses,  Chicago,  111.     (Brief; 
no  appearance  at  hearings.) 

Size  of  industry, — Pig  tin  enters  to  quite  a  large  extent  into  this 
business.  The  pig  tin  produced  from  Bolivian  ores  is  regarded  as 
unsuitable  for  the  association's  purposes. 

Rates  suggested. — The  association  asks  that  the  duty  of  2  cents  per 
pound  on  pig  tin,  in  H.  R.  7456,  be  not  imposed. 

These  statements  are  included  in  a  resolution  adopted  at  a  meeting 
of  the  association  on  October  11,  1921. 

PARAGRAPH  386. — TIN  SOLDER. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

The   Solder  and   Bearing  Metal   Manufacturers'   Association.      (Brief   of 

August  3,  1921.) 

The  American   Smelting  &  Refining  Co.     Frishmuth  Bros.   &   Co.,   Phila- 
delphia, Pa.     (Brief.) 

Witness :  The  Solder  and  Bearing  Metal  Manufacturers'  Associa- 
tion. (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Protest  is  made  against  placing  a  duty  on  tin. 
The  only  tin  that  it  is  possible  to  smelt  in  the  United  States  is  made 
from  Bolivian  ore.  This  tin  has  such  properties  as  to  make  it  unfit 
for  use  for  the  manufacture  of  tin  plate,  high-grade  solders  and  bear- 
ing metals,  for  rolling  into  foil,  for  manufacturing  into  collapsible 
tubes,  or  for  tinning  high-grade  steel  products.  At  the  best,  the 
association  can  not  smelt  and  refine  and  use  Bolivian  tin  to  amount 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    74.56.  239 

to  more  than  25  per  cent  of  its  total  tin  requirements.  A  duty  on 
Bolivian  tin  will  not  increase  consumption,  as  it  is  now  being  used  to 
as  great  an  extent  as  it  can  be,  owing  to  the  fairly  limited  purposes 
for  which  it  is  adaptable.  The  tin  produced  from  Bolivian  ore  is 
generally  known  as  second-quality  tin,  although  lately  sold  under 
the  term  of  99  per  cent  tin. 

Comparability. — The  Department  of  Commerce  states  that  the 
cost  of  smelting  and  refining  tin  in  the  Straits  Settlements,  including 
overhead,  is  from  £4  to  £6  per  ton.  Inquiry  in  England  indicates 
the  same  cost  in  that  country;  hence,  any  duty  beyond  $10  to 
$12  per  net  ton  would  exceed  the  entire  labor  cost  expended  on  the 
smelting  and  refining  of  tin  in  the  United  States,  given  as  from  $10 
to  $15  per  net  ton  in  the  brief. 

Witness :  The  American  Smelting  .&  Refining  Co.  Replying  to  the 
above-cited  brief  under  date  of  September  16,  1921,  the  company 
asserts  that  its  electrolytic  tin  is  purer  than  the  best  Straits  tin,  and 
has  been  used  for  all  the  products  for  which  it  is  claimed  to  be  suit- 
able by  the  Solder  and  Bearing  Metal  Manufacturers'  Association. 
Touching  the  assertions  made  in  regard  to  smelting  and  refining  costs, 
the  company  calls  attention  to  the  fact  that  in  the  Straits  Settlements 
and  in  England  further  refining  is  unnecessary,  pure  tin  ores  being 
available,  whereas  in  the  United  States  it  is  impossible  to  obtain  pure 
ores  for  mixing  with  the  Bolivian  ore,  which,  when  smelted  alone, 
does  not  give  a  sufficiently  high  grade  of  product  for  tin  plating. 
The  proposed  duty  of  2  cents,  therefore,  would  compensate  only  for 
this  extra -cost  of  producing  tin  comparable  with  Straits  tin,  not  to 
speak  of  the  higher  labor  costs  here  as  compared  with  those  abroad. 

A  further  statement  from  the  Solder  and  Bearing  Metal  Manufac- 
turers' Association,  dated  September  27,  reiterates  the  statements 
made  in  the  earlier  brief  (abstracted  above),  citing  as  evidence  the 
>  inferior  quality  of  American  tin  and  the  various  protests  presented 
by  consuming  interests  against  the  proposed  duty.  In  support  of  the 
association's  claim  that  the  duty  would  benefit  only  the  American 
Smelting  &  Refining  Co.,  it  is  stated  that  the  duty  will  be  added  to 
the  price,  not  only  of  Straits  tin,  but  of  all  other  tins.  In. spite  of  the 
unquestionable  inferiority  of  99  per  cent  tin  it  now  sells  for  only 
one-half  cent  per  pound  less  than  Straits.  Increasing  the  price  on 
this  tin  would  simply  serve  the  purpose  of  enabling  the  smelters  of 
Bolivian  tins  to  get  a  better  price  for  their  product.  As  regards  the 
statement  of  the  American  company  that  only  by  the  electrolytic 
process  is  it  possible  to  produce  a  good  tin  from  Bolivian  ore,  and 
that  it  costs  2  cents  per  pound  additional  for  that  process,  that  is  a 
confession  that  the  company  has  a  monopoly  on  this  kind  of  tin  and 
wants  to  have  a  duty  equal  to  the  entire  cost  of  such  refining. 

Witness:  Frishmuth  Bros.  &  Co.,  tobacco  and  cigarette  manufac- 
turers, Philadelphia,  Pa.  (Brief;  no  appearance  at  hearings.) 

The  firm  protests  against  the  iiuty  on  tin  as  adding  to  the  cost  of 
their  product  to  the  ultimate  consumer. 


240  DIGEST   OF   TARIFF   HEARINGS,   H.   R,    7456. 

PARAGRAPH  386;  ALSO  PARAGRAPHS  389  AND  393. — TINFOIL,  ETC. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Egbert  Moxham,  representing  the  Conley  Foil  Co. 

Hearings :  Pages  2057-2067. 

Witness:  Mr.  Egbert  Moxham,  representing  the  Conley  Foil  Co. 

Size  of  industry. — The  tinfoil  business  is  a  long-established  Ameri- 
can industry,  carried  on  by  a  number  of  firms  with  plants  established 
in  various  parts  of  the  country;  they  use  approximately  4,000  tons 
of  tin  per  year,  or  about  6  per  cent  of  the  total  consumption  of  the 
country. 

Rates  suggested. — The  Fordney  bill  removes  metallic  tin  from  the 
free  list  and  places  on  it  a  duty  of  2  cents  per  pound.  It  advances 
the  duty  on  lead  from  25  per  cent  ad  valorem  to  a  specific  duty  of 
2£  cents  per  pound,  equivalent  at  normal  lead  prices  to  100  per  cent 
increase.  Tinfoil  receives  a  protection  of  35  per  cent  ad  valorem, 
as  compared  with  20  per  cent  in  the  Underwood  bill  and  45  per  cent 
in  the  Payne-Aldrich  bill.  It  is  the  urgent  contention  of  the  tin- 
foil manufacturers  of  the  United  States  that  they  are  thus  subjected 
to  unjust  discrimination. 

There  exists  to-day  in  this  country  no  mining  of  tin,  and  the 
assessment  of  a  duty  on  imports  of  tin  in  ore,  while  protecting 
no  American  industry,  can  not  fail  to  increase  materially  to  United 
States  consumers  the  cost  of  all  products  into  which  tin  enters,  or 
to  react  most  unfavorably  upon  manufacturers  dependent  upon  tin 
for  a  considerable  part  of  their  raw  material. 

In  view  of  these  considerations,  the  committee  was  strongly  urged 
not  to  favor  the  levying  of  an  important  duty  on  tin  in  ore,  on  the 
broad  general  ground  that  it  is  not  a  protective  measure  and  that  it 
is  unjust  to  impose  on  one  commodity  so  abnormal  a  levy  for  revenue 
purposes  only.  Suggestions  in  detail  follow : 

Tin :  Tin  should  remain  on  the  free  list.  The  tin  industry  is  not 
entitled  to  the  protection  sought.  The  dependence  of  the  United 
States  on  the  outside  world  for  tin  is  so  absolute  as  to  make  it  almost 
self-evident  that  any  import  duty  imposed  by  the  United  States  will 
be  followed  by  retaliatory  duties  on  the  part  of  producing  countries. 
This  would  serve  to  build  upon  domestic  prices  not  only  the  import 
duty  proposed  but  the  retaliatory  export  duties  occasioned  thereby. 
As  to  tin-foil,  into  which  tin  enters  largely,  this  would  work  not  only 
a  decided  hardship  to  the  producer  but  also  to  the  consuming  public 
in  the  enhanced  prices  created.  If  the  existing  schedule  on  tin  is 
changed,  tin-foil  should  carry,  in  addition  to  such  ad  valorem  duty  as 
it  may  enjoy,  a  specific  duty  based  on  the  metallic  content  of  the 
foil  to  the  extent  of  the  specific  assessments  on  tin  over  the  present 
schedule. 

Lead:  A  protection  of  approximately  50  per  cent  ad  valorem  is 
unnecessarily  high.  Statistics  show  that  this  country  is  producing 
its  full  requirement  of  lead  and  is  exporting  large  quantities,  indi- 
cating that  the  industry  is  in  a  position  to  compete  successfully  with 
foreign  producers. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  241 

A  suggested  amendment  to  paragraph  393,  following  the  words 
41  35  per  cent  ad  valorem,"  runs  as  follows : 

Provided,  That  any  manufactured  product  covered  herein,  composed  in  whole 
•or  in  part  of  metals  upon  which  there  has  been  imposed  by  this  act  specific 
duties,  shall  carry,  in  addition  to  the  ad  valorem  duty  herein  enacted,  a  specific 
duty  of  the  same  rate  as  is  enacted  for  the  metal  components  by  other  provisions 
-of  this  act. 

PARAGRAPH  387. — BOTTLE  CAPS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Egbert  Moxham,  representing  the  Conley  Foil  Co. 

Hearings :  Pages  2057-2067. 

Witness :  Mr.  E.  Moxham,  representing  the  Conley  Foil  Co. 

Costs  and  selling  prices. — Although  American  methods  in  the 
manufacture  of  bottle  caps  are  believed  to  be  the  most  advanced  in 
use,  the  prices  that  manufacturers  are  able  to  quote  are  materially 
higher  than  those  of  their  foreign  competitors. 

Foreign  prices  are  lower  by  reason  of  lower  values  of  materials 
(lead  and  tin)  and  labor.  The  following  is  a  comparison  of  prices 
of  bottle  caps,  as  quoted  by  a  large  German  manufacturer,  with 
domestic  prices  in  the  United  States  (converted  at  the  rate  of  1 
German  mark  equals  1.28  cents)  : 

Plain  bottle  caps — 

German  price,  per  1,000 $0.  54-$l.  18 

American  price,  per  1,000 3.65-  4.75 

•Colored  bottle  caps — 

German  price,  per  1,000 .  79-  1.45 

American  price,  per  1,000 .    4. 49-  5.  59 

To  land  caps  in  this  country  carrying  charges  would  have  to  be 
added  to  the  German  figures. 

Size  of  industry. — There  were  at  one  time  a  number  of  manufac- 
turers of  bottle  caps  in  the  United  States,  but  severe  foreign  competi- 
tion compelled  one  company  after  another  to  give  up  the  manu- 
facture. To-day,  so  far  as  is  known,  the  Conley  Foil  Co.  is  the  only 
manufacturer  now  in  business  in  this  country. 

Rates  suggested. — The  following  provision  is  urged  in  place  of 
paragraph  387 : 

Bottle  caps  of  metal,  collapsible  tubes,  and  sprinkler  tops,  if  not  decorated, 
colored,  lacquered,  waxed,  enameled,  lithographed,  electroplated  or  embossed  in 
•colors,  60  per  cent  ad  valorem  ;  if  decorated,  colored,  waxed,  lacquered,  enameled, 
lithographed,  electroplated,  or  embossed  in  colors,  10  per  cent  extra  ad  valorem 
for  every  color  or  lacquer,  enamel,  lithographing  (electroplating  or  embossing 
Bronze  to  be  counted  as  two  colors),  plus  a  specific  duty  of  2J  cents  per  pound. 

PARAGRAPH  389. — TYPE  METAL  AND  OTHER  LEAD  ALLOYS. 

WITNESS. 

REQUESTING  ADDITIONS  : 

The  United  Lead  Co.,  New  York  City.      (Brief;   no  appearance  at  hear- 
ings). 

Attention  is  directed  to  the  omission  of  tin  and  antimony  from 
the  combinations  of  metals  referred  to  in  paragraph  389.  Type 
metal,  Babbitt  metal,  and  solder  are  combinations  mainly  of  lead, 
tin,  and  antimony,  and  the  omission  (presumably  accidental)  of 
the  two  latter  metals  would  open  up  the  opportunity  of  importing 


242  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

them  mixed  with  lead,  although  H.  R.  7456  clearly  provides  for  i 
duty  on  tin  and  antimony  in  their  raw  state. 

PARAGRAPHS  390  AND  391.  ALSO  74  AND  88,  or  SCHEDULE  1. — ZINC  ORES 
AND  METAL  ;  ZINC  OXIDE  AND  COMPOUNDS. 

(See  also  pars.  74  and  88  of  Schedule  1,  pp.  1295-1297.) 

WITNESSES,   AND  INTERESTS   REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  E.  H.  Wolff,  representing  the  American  Zinc  Institute,  New  York  City. 

Mr.  William  A.  Ogg,  president  American  Zinc,  Lead  &  Smelting  Co.,  Boston, 
Mass.  (Brief.) 

Mr.  Otto  Ruhl,  representing  zinc-ore  producers ;  address,  Joplin,  Mo. 

Mr.  F.  W.  Wallower,  representing  the  Golden  Rod  Mining  &  Smelting  Cor- 
poration, Joplin,  Mo. 

Mr.  Charles  T.  Orr,  representing  the  Athletic  Mining  &  Smelting  Co., 
Webb  City,  Mo. 

Hon.  Henry  L.  Myers,  United  States  Senator  from  Montana,  representing 
western  zinc  producers. 

Hearings :  Pages  2067-2075. 

Witness :  Mr.  E.  H.  Wolff,  representing  the  American  Zinc  Insti- 
tute. 

Costs  and  selling  prices. — Germany  can  produce  slab  zinc  for  2 
cents  per  pound.  Belgian  costs  are  a little  higher  because  of  higher 
wage  and  fuel  scale.  A  Xew  Tasmania  installation  will,  two  years 
hence,  produce  100  tons  daily  at  a  cost  of  4  cents  per  pound. 

Domestic  wages  are  three  to  six  times  those  abroad  and  to-day 
production  costs  are  more  than  the  price  of  the  metal.  Six  and  one- 
half  cents  per  pound,  exclusive  of  depreciation  or  profit,  is  the 
lowest  domestic  cost  probable. 

Fuel  and  freight  play  an  important  part  in  domestic  production 
costs  and  both  of  these  items  are  far  above  the  prewar  scale.  During 
the  war  domestic  labor  was  placed  on  the  8-hour  basis  instead  of  12 — 
a  change  adding  30  to  35  per  cent  to  the  cost  of  production.  During 
the  last  months  of  1920  foreign  zinc  was  landed  at  New  York,  duty 
paid,  for  4J  cents  per  pound. 

Size  of  industry. — The  domestic  smelting  capacity  is  650,000  tons 
of  slab  zinc  per  annum.  Production  in  July,  1921,  was  at  the  rate 
of  186,000  tons  per  year  and  stocks  of  metal  on  hand  were  sufficient 
to  supply  present  needs  for  six  or  seven  months.  Geological  Survey 
reports  show  one-half  the  production  in  1921  as  compared  with  the 
same  period  in  1920.  During  the  first  six  months  of  1921  imports 
amounted  to  7,405  tons;  exports,  2.255  tons;  consumption,  83,865 
tons.  During  the  first  six  months  of  1920  imports  were  nil ;  exports, 
70,000  to  90,000  tons ;  consumption,  160,000  to  175,000  tons.  Imports 
were  growing  until  political  disturbances  in  Europe  cut  off  sources 
of  supply. 

The  domestic  productive  capacity  doubled  during  the  period  1914- 
1916  and  there  are  now  47  smelters  located  in  nine  States.  The 
new  mining  districts  of  the  Missouri,  Kansas,  Oklahoma  field  are  the 
richest  in  the  world. 

Rates  suggested. — The  witness  proposes  the  following  schedule  of 
rates  on  zinc  and  zinc  products : 

Zinc  ore  containing  up  to  10  per  cent,  free. 

Zinc  ore  containing  10  to  25  per  cent  zinc,  Ij  cents  per  pound  of  zinc. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  243 

Zinc  ore  containing  above  25  per  cent  zinc,  2  cents  per  pound  of  zinc. 

Zinc  dust,  3f  cents  per  pound. 

Slab  zinc,  2J  cents  per  pound. 

Sheets,  plain  and  coated,  3J  cents  per  pound. 

Old  zinc,  2J  cents  per  pound. 

Zinc  oxide  containing  less  than  25  per  cent  lead,  2f  cents  per  pound. 

The  witness  points  out  that  in  the  lead  schedule  manufactures  of 
lead  are  dutiable  at  higher  rates  than  the  metal,  while  in  the  pro- 
posed bill  the  compounds  of  zinc,  such  as  the  chloride,  sulphate,  and 
sulfide,  are  dutiable  at  the  same  or  even  lower  rates  than  the  metal. 

The  bill  as  passed  by  the  House  provides  for  a  temporary  rate  on 
zinc  metal  of  2  cents  per  pound.  The  witness  requests  that  this  be 
made  permanent,  as  otherwise  the  ore  producers  will  derive  no  benefit 
from  the  higher  permanent  rate  provided  on  ore.  In  other  words, 
equitable  rates  must  be  provided  on  all  products  of  zinc  ore  or  the 
schedule  will  fail  to  protect  the  miners.  He  requests  that  zinc  oxide 
be  considered  with  zinc  metal  in  Schedule  III. 

Hearings :  Pages  2075-2079. 

Brief  by  William  A.  Ogg,  American  Zinc.  Lead  &  Smelting  Co. 

Costs  and  selling  prices. — Since  1914  increases  in  freight  rates 
(now  double  prewar)  have  added  considerably  to  costs.  Taking 
1  ton  of  Joplin  concentrate  as  containing  1,000  pounds  of  recoverable 
zinc,  increases  in  freight  on  this  ore  to  smelters  and  of  the  metal  to 
New  York  add  0.55  cent  per  pound  to  cost.  Mining  costs  in  the 
United  States  have  increased  from  50  to  100  per  cent  during  and 
since  the  war  and  smelting  costs  have  more  than  doubled.  Costs 
may  be  decreased,  but  the  prewar  scale  is  gone  for  good. 

The  development  of  electrolytic  processes  in  foreign  countries  pre- 
viously handicaped  by  a  lack  of  cheap  fuel  introduces  large  tonnages 
of  low-cost  zinc  into"  the  world  market.  The  exchange  situation  is 
another  factor  contributing  to  low  foreign  costs. 

German  prewar  costs  were  80  per  cent  of  American.  Labor  rates 
there  to-day  are  one-fifth  the  American  rate  and  costs  probably  one- 
third.  As  compared  with  an  American  cost  of  6.6  cents  per  pound, 
German  costs  would  thus  be  2.2  cents  per  pound.  This  extreme 
difference  is.  however,  not  likely  to  be  permanent. 

Zinc  has  recently  been  purchased  in  Europe  for  4.6  cents  per 
pound,  or  2  cents  below  American  costs  plus  freight  to  New  York. 

Tasmanian  costs  (electrolytic  production)  will  approximate  2.92 
cents  per  pound  with  exchange  at  $3.50,  or  4.06  cents  with  sterling 
at  par.  These  costs  are  f.  o.  b.  London  or  New  York. 

Present  and  probable  domestic  costs. 


Present. 

Probable. 

Mini- 
mum. 

Cost  of  ore  (60  per  cent  concentrate)  per  ton  of  2,000  pounds  

$30.00 
6.00 

!    $30.00 
6.00 

$30.00 
6.00 

25.00 

1      20.00 

15.00 

Total           

61.00 

i      56.00 

51.00 

.061 

.056 

.051 

Freight  to  New  York  

.005 

.005 

.005 

Cost  f.  o.  b.  New  York. 


244  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

The  ore  costs  given  are  below  domestic  mining  costs. 

Size  of  industry. — The  domestic  smelting  capacity  was  increased 
by  29,692  retorts  during  the  war  period  and  a  large  electrolytic  plant 
has  been  erected.  The  European  smelting  capacity  has  been  in- 
creased and  the  surplus  will  be  obliged  to  seek  new  markets. 

Rates  suggested. — Specific  duties  on  zinc  ore,  metal,  and  products. 
Comparing  costs  in  the  United  States  with  those  obtainable  in  Tas- 
mania, it  will  require  a  duty  of  3  cents  per  pound  to  maintain  the 
domestic  industry  on  a  prosperous  basis. 

Hearings :  Pages  2079-2086. 

Witness:  Mr.  Otto  Ruhl. 

Costs  and  selling  prices. — During  1919  and  1920  the  average  value 
of  35  per  cent  ore  laid  down  at  points  along  the  Rio  Grande  was  $12 
a  ton.  This  ore  contained  700  pounds  of  metal,  while  the  Missouri 
concentrate  contains  1,200  pounds.  It  requires,  therefore,  1.7  tons 
of  Mexican  ore  to  yield  the  equivalent  of  1  ton  of  Missouri  concen- 
trates, resulting  in  a  value  of  $20.40.  The  freight  on  this  1.7  tons 
of  foreign  ore  on  the  Mexican  border  to  Oklahoma  smelters  would 
be  $11.72,  or  $6.90  per  ton  of  ore,  making  a  total  cost  of  $32.13. 
During  1919  the  average  cost  in  the  Missouri-Oklahoma  field  for  11 
groups  of  properties,  producing  92,000  tons  of  concentrates,  was 
$47.50  a  ton.  Allowing  for  profit,  freight  rates  to  smelters,  and  other 
charges,  the  cost  of  Joplin  ore  becomes  $57.17,  or  a  difference  be- 
tween the  two  products,  having  the  same  metal  content,  of  $25  per 
ton,  or  approximately  2  cents  per  pound. 

Size  of  industry. — The  Missouri-Oklahoma-Kansas  zinc  district 
supplies  approximately  40  per  cent  of  the  zinc-ore  production  in  the 
United  States.  This  production  has  dependent  upon  it  a  population 
of  150,000  to  200,000  persons.  At  the  present  time  production  is 
much  depressed,  this  condition  starting  about  a  year  earlier  than  that 
in  other  industries  following  the  war. 

Rates  suggested. — In  view  of  the  difference  in  cost  discussed  above, 
the  witness  proposes  the  following  changes:  Zinc-bearing  ores  con- 
taining less  than  10  per  cent  metallic  zinc,  free;  ores  containing  10 
to  25  per  cent  metallic  zinc,  1^  cents  per  pound ;  zinc  content,  25  per 
cent  zinc  or  over,  2  cents  per  pound  metallic  content;  zinc  metal, 
blocks,  pigs,  or  slabs,  and  worn-out  zinc,  2f  cents  per  pound;  zinc 
oxide  (schedule  1,  par.  74)  and  white  pigment  containing  zinc  and 
not  containing  lead,  2f  cents  per  pound ;  zinc  sheets,  strips,  coils,  and 
other  products,  3f  cents  per  pound. 

Remarks. — In  the  witness's  brief,  beginning  on  page  2081,  are 
tables  showing  increases  in  cost  on  all  supplies  entering  into  the 
mining  of  zinc,  monthly  prices  of  zinc  ore  over  a  period  of  24  years, 
imports  from  1914  to  1918,  and  wage-scale  comparisons  between 
present  Mexican  wages  and  the  prewar  and  present  Missouri-Okla- 
homa wage.  There  is  also  a  table  showing  the  itemized  cost  in  the 
11  properties  mentioned  by  the  witness. 

Hearings :  Pages  2086-2087. 

Witness :  Mr.  F.  W.  Wallower,  representing  the  Golden  Rod  Min- 
ing &  Smelting  Corporation. 

Costs  and  selling  prices. — Mexican  competition  has  so  affected  the 
Missouri  zinc  district  that  of  87  mills  formerly  in  operation  none 
are  left  at  the  present  time.  Several  years  ago  there  were  200  mills 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 


245 


operating  m  the  Oklahoma  fields;  to-day  there  are  25.     Formerly 
12,000  men  were  employed ;  to-day  there  are  2,000. 

Rates  suggested. — Two  cents  a  pound  on  ore:  other  rates  as  sug- 
gested by  Mr.  Ruhl. 

Hearings :  Page  2087. 

Witness :  Mr.  C.  T.  Orr.  representing  the  Athletic  Mining  & 
Smelting  Co. 

Costs  and  setting  prices.— The  lead  contained  in  some  Missouri 
ores  is  the  only  factor  permitting  operation  of  the  mines  at  the  pres- 
ent time.  The  lead  recovered  increases  the  value  of  the  ore  and  so 
permits  operation  in  the  larger  mines.  The  purely  zinc  mines  are 
almost  out  of  business. 

Rates  suggested. — Two  cents  a  pound  on  ore  and  rates  on  other 
products  as  requested  by  other  witnesses. 

Hearings :  Pages  2087,  2088. 

Witness:  Hon.  H.  L.  Myers,  representing  western  zinc  producers. 

Costs  and  selling  prices. — Witness  asserts  that  costs  run  2J  cents 
per  pound  in  the  West,  but  the  balance  of  his  testimony  on  this  para- 
graph tends  to  the  implication  that  he  regards  domestic  costs  on 
zinc  metal  as  being  2^  cents  above  foreign  costs. 

Size  of  industry. — Western  zinc  producers  are  in  a  bad  way  and 
most  mines  are  shut  down. 

Rates  suggested. — Would  be  satisfied  with  rates  proposed  by  the 
witnesses  representing  other  producers. 

PARAGRAPH  390;  ALSO  PARAGRAPHS  302,  386,  AND  389;  ALSO  PARA- 
GRAPH 47  OF  SCHEDULE  1  AND  PARAGRAPH  207  or  SCHEDULE  2. — 
PRODUCTS  ENTERING  INTO  THE  MANUFACTURE  OF  STEEL. 

WITNESS,  AND  INTERESTS  REPRESENTED. 
FAVORING  LOWER  DUTIES  : 

Mr.  John  A.  Topping,  chairman  of  the  board  of  directors  of  the  Republic 
Iron  &  Steel  Co.,  representing  15  independent  steel  companies,  producing 
about  one-half  of  the  steel  output  of  the  United  States;  address,  New 
York  City. 

Hearings:  Pages  1710-1739. 

Costs  and  selling  prices. — The  raw  materials  entering  into  steel 
manufacture,  such  as  ferromanganese,  ferrosilicon,  tin,  zinc,  etc., 
add  materially  to  its  cost.  The  proposed  increase  in  taxes  on  these  ma- 
terials, as  proposed  in  the  Fordney  bill,  would  add  $23,800.000  per 
annum  to  the  cost  of  steel,  this  amount  being  distributed  as  follows : 


Raw  material. 

Annual  re- 
quirements. 

Pro- 
posed 
tax. 

Tax  per 
annum. 

Tons. 
W  000 

Per  ton. 
$37  05 

$2  964  000  00 

300,000 

5.00 

i  .'(MI  o<>o.  (X) 

Manganese  ore,  48  per  cent  

750,000 
150  000 

10.  75 
10.00 

8,062,500.00 
1  500  000  00 

Pounds. 
61,949,922 

Ptr  Ib. 
.02 

1,23S,998.00 

Zinc  (first  two  years)  

426,986,416 

.02 

8,  539.  72S.  00 

Total 

23  805  226  00 



22- 


-17 


246  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    "7456. 

The  labor  cost  in  the  manufacture  of  steel  is  greater  in  the  United 
States  than  in  the  principal  competing  countries  of  Europe — Bel- 
gium, England,  and  Germany.  In  Germany,  based  upon  returns 
from  20  different  cities,  published  by  the  Kiel  Institute  of  World 
Economics,  the  labor  cost  in  the  production  of  steel  has  materially 
declined.  A  machinist  \vhp  earned  in  1914  $1.49  per  day  in  gold 
earns  to-day  only  41  cents  in  terms  of  gold.  This  comparison  does 
not  take  into  account  the  difference  between  the  international  gold 
exchange  value  of  the  mark  and  its  lowest  purchasing  power,  due  to 
the  governmental  regulation  of  prices,  which  has  given  the  mark  an 
unnatural  buying  power  in  excess  of  its  international  exchange  value. 
A  very  moderate  estimate  of  the  real  purchasing  power  of  the  ma- 
chinist's daily  wages  would  make  the  41  cents  per  daV  equivalent  to 
about  $1.23  per  day.  In  the  United  States  wage  rates  are  about  52 
per  cent  higher  than  in  1914,  yet  in  the  steel  industry  as  a  whole  the 
wages  of  labor  have  probably  been  more  thoroughly  liquidated  than 
those  affecting  any  other  group  of  large  employers. 

When  the  act  of  1909  was  put  into  effect  the  rate  of  wages  paid  by 
American  steel  producers  and  all  other  employers  was  about  52  per 
cent  lower  than  it  is  to-day.  The  freight  costs  for  assembling  raw 
material  to-day  are  100  per  cent  more  than  they  were  in  1914.  Thus, 
for  a  ton  of  crude  pig  iron  the  freight  charges  alone  amount  to  about 
$10.50,  as  against  about  $5  in  1909. 

In  addition  to  other  costs,  the  freight  charges  on  the  finished  steel 
product  shipped  to  points  along  the  coast  add  materially  to  the  do- 
mestic selling  price  as  against  the  price  of  the  foreign  product.  For 
example,  the  cost  of  steel  sheet  and  structural  shapes  laid  down  in 
New  York  is  $2.23  a  hundred ;  the  German  price  at  the  same  point, 
including  freight  and  insurance  but  exclusive  of  the  duty,  is  $1.47. 
The  higher  price  of  the  American  product  in  New  York  is  partly  due 
to  a  freight  rate  from  Pittsburgh  to  New  York  of  $7.60  per  ton. 

The  steel  producers  of  the  United  States  are  satisfied  with  the  rates, 
with  a  few  slight  exceptions,  on  steel  products  in  the  Fordney  bill, 
provided  the  rates  on  raw  material,  such  as  ferrosilicon,  ferroman- 
ganese,  etc.,  are  not  so  high  as  to  increase  materially  the  cost  of  pro- 
ducing finished  steel. 

Size  oj  industry. — The  United  States  census  report  for  1914  credits 
the  steel  industry  with  a  capital  investment  of  nearly  $4,300,000,000, 
an  annual  pay  roll  of  over  $723,000.000,  and  a  total  value  of 
products  of  $3,223,000,000.  Since  19 .4,  under  the  stimulus  of  war  de- 
mand, the  steel-ingot  capacity  of  this  country  was  increased  from 
40,000,000  tons  to  55,000,000  tons,  an  increase" of  about  37  per  cent. 
The  total  number  of  steel  employees  under  full  operation  would 
closely  approximate  1,500,000  persons,  with  an  annual  pay  roll  close 
to  $1,000,000.000  based  upon  1914  wage  rates  and  approximately 
$1,500.000.000  based  upon  present  wage  rates.  The  witness  strongly 
opposed  the  duties  embodied  in  schedule  1,  paragraph  47;  schedule  2, 
paragraph  207;  and  schedule  3,  paragraphs  302,  386,  389.  and  390. 
With  regard  to  the  first,  he  held  that  no  duty  on  fluorspar  is  neces- 
sary for  an  industry  protected  by  the  freight  charges  from  the  coast 
to  inland  points.  As  to  the  second,  the  magnesite  industry  had 
flourished  under  free  trade.  With  respect  to  manganese,  paragraph 
302  of  schedule  3,  it  would  be  difficult  to  justify  any  duty  whatsoever, 
seeing  that  there  is  no  real  market  for  the  domestic  lean  and  high 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456.  247 

silicon  manganese  ores  when  the  richer  foreign  products  of  Brazil, 
India,  and  Russia  are  available.  Ferromanganese  is  a  blast-furnace 
product  like  pig  iron,  and  is  entitled  to  a  duty  relative  to  pig  iron, 
or  about  three  and  one-half  times  the  rate  imposed  upon  pig  iron; 
this  would  be  about  $4.25  per  ton  instead  of  the  proposed  rate  of 
$39.42  per  ton.  The  witness  also  protested  against  the  duties  on  ferro- 
silicon.  There  can  be  no  justification  for  an  increased  import  tax  on 
pig  tin,  lead,  and  zinc  from  a  protective-tariff  standpoint  at  least. 

In  the  opinion  of  the  witness,  a  reduction  of  rates  of  duty  on  the 
raw  materials  mentioned  is  more  desirable  than  an  increasa  in  the 
rates  on  finished  steel  products,  because  there  is  a  surplus  product  of 
finished  steel,  which  is  ordinarily  exported.  This  export  product 
comes  into  competition  with  foreign  steel,  and  it  is  therefore  desir- 
able to  reduce  costs  of  production  in  the  United  States  as  much  as 
possible.  Besides,  this  export  product  is  an  important  factor  in  keep- 
ing labor  employed  in  the  United  States. 

PARAGRAPH  393. — HAIR  CLIPPERS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  Charles  F.  Wiebusch,  representing  manufacturers  of  hair  clippers. 
FAVORING  LOWER  DUTIES  : 

Adolph  Kastor  &  Bros.     (Brief.) 

Hearings :  Pages  1941-1945. 

Witness :  Mr.  C.  F.  Wiebusch,  representing  manufacturers  of  hair 
clippers. 

Costs  and  selling  prices. — During  the  past  12  months,  thousands  of 
pairs  of  clippers,  sold  at  ruinously  low  prices,  have  flooded  this 
market  from  Germany,  estimated  at  several  hundred  thousand  pairs 
in  all.  The  goods  are  on  the  shelves  of  practically  every  jobber  and 
retailer  of  this  class  of  goods  in  the  country.  Clippers  are  offered 
by  German  manufacturers  at  prices  which,  even  with  35  per  cent 
duty  added,  are  considerably  less  than  the  cost  of  production  of  cor- 
responding American  models. 

Size  of  industry. — The  hair-clipper  industry,  while  not  one  of  the 
large  industries  of  the  country,  nevertheless  is  important. 

Rates  suggested. — Under  schedule  3,  paragraph  357,  before  the 
word  "Provided"  there  should  be  inserted  "hair  clippers,  25  cents 
each  and  35  per  cent  ad  valorem."  The  rate  of  35  per  cent  under 
paragraph  393,  even  if  based  on  the  American  valuation  plan, 
affords  an  entirely  inadequate  protection  under  existing  conditions. 

Hearings:  Pages  1928-1929. 

Brief :  Adolph  Kastor  &  Bros. 

Costs  and  selling  prices. — The  following  are  prices  of  German 
clippers  and  comparative  American  clippers ;  No.  1  clipper,  28  cents — 
American,  55  cents;  No.  0,  32  cents — American,  80  cents;  No.  00,  37 
cents — American,  90  cents.  Applying  the  requested  tariff  of  25  cents 
each  and  35  per  cent  ad  valorem,  the  following  would  be  the  prices  of 
the  German  articles :  No.  1  clipper,  72  cents ;  No.  0,  85  cents ;  No.  00, 
93  cents.  Applying  the  rate  under  paragraph  393  of  35  per  cent 


248  DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456. 

ad  valorem,  the  following  would  be  the  prices  of  the  German 
articles :  No.  1  clipper,  47  cents ;  No.  0,  60  cents ;  No.  00,  69  cents. 

Rates  suggested. — It  is  earnestly  urged  that  hair  clippers  and 
toilet  clippers  be  classified  under  the  basket  clause  forming  para- 
graph 393  of  the  Fordney  bill.  The  specific  duty  of  25  cents  per 
piece,  plus  35  per  cent  ad  valorem,  would  be  prohibitive  and  act  as  an 
embargo,  whereas  an  ad  valorem  duty  of  35  per  cent  under  para- 
graph 393  would  afford  domestic  manufacturers  ample  protection 
without  strangling  importation. 

Remarks.— A  letter,  dated  September  19,  1921,  from  Wiebusch  & 
Hilger  (Ltd.),  hardware  and  cutlery,  New  York  City,  to  the  chair- 
man of  the  Senate  Committee  on  Finance,  in  behalf  of  themselves 
and  three  manufacturing  firms,  refers  to  the  brief  summarized 
above.  It  is  submitted  that  the  Kastor  calculations  are  based  on 
prices  of  American  makers  whose  clippers  do  not  compare  in  quality 
with  the  product  of  the  four  leading  American  manufacturers,  nor 
even  with  the  quality  of  German  clippers.  The  letter  takes  issue 
with  the  assertion  that  a  specific  duty  on  these  goods  is  unnecessary 
for  the  protection  of  American  manufacturers. 

In  a  separate  and  supplementary  letter,  dated  September  21,  1921, 
from  the  American  Shearer  Manufacturing  Co.,  of  Nashua,  N.  H., 
one  of  the  firms  represented  in  the  cited  letter,  exception  is  taken  to 
the  Kastor  claimi  that  hair  and  toilet  clippers  should  not  be  classi- 
fied as  cutlery.  Asa  matter  of  fact,  the  material  used  in  their  manu- 
facture is  of  higher  grade  than  that  employed  in  scissors,  shears,  etc., 
and  the  goods  involve  the  employment  of  a  large  proportion  of 
skilled  mechanics.  As  the  original  producers  of  hair  clippers  in  the 
United  States  the  firm  stigmatizes  the  Kastor  brief  as  an  attack  on 
an  old  American  industry.  Complaint  is  made,  as  in  the  group 
letter,  that  the  comparative  American  prices,  cited  in  the  brief,  are 
fallacious.  "  The  Kastor  brief  is  in  substance  an  argument  against 
the  American  valuation  plan." 

PARAGRAPH  393. — MINERS'  SAFETY  LAMPS  AND  OXYGEN  BREATHING 
APPARATUS. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Mine  Safety  Appliances  Co.,  Pittsburgh,  Pa.     (Brief;  no  appearance  at 
hearings. ) 

Size  of  industry. — The  manufacture  of  flame  safety  lamps,  electric 
safety  cap  lamps,  and  self-contained  oxygen  breathing  apparatus 
commonly  termed  "  mine  apparatus,"  in  the  United  States  is  prac- 
tically a  war-time  development. 

Prior  to  the  war  all  flame  safety  lamps  were  imported,  as  at  that 
time  no  manufacturer  would  make  up  the  necessary  equipment  for 
their  manufacture  in  this  country.  On  account  of  the  necessity  of 
the  mining  industry  there  wTas  good  and  sufficient  reason  for  keeping 
them  on  the  free  list.  During  the  war,  the  supply  'being  cut  off 
from  Germany,  it  became  necessary  to  build  these  lamps  in  this 
country,  and  several  kinds  of  electric  safety  cap  lamps  for  mining 
use  are  now  manufactured  here.  These  are  real  safety  devices,  in- 
stalled in  the  gaseous  mines  of  this  country  during  the  past  five 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  249 

years  to  the  number  of  over  200,000,  with  the  result  of  practically 
eliminating  mine  disasters  arising  from  gas  and  dust  explosions. 

Before  the  entry  of  the  United  States  into  the  war  all  self-con- 
tained oxygen  breathing  apparatus  was  imported  from  Germany 
or  England,  90  per  cent  coming  from  the  Draeger  Co.,  Lubeck, 
Germany.  The  first  orders  for  breathing  apparatus  for  the  Ameri- 
can Army  were  for  the  Fleuss  Proto,  made  by  Siebe,  Gorman  &  Co., 
in  London.  This  order,  placed  in  October,  1917,  was  not  executed 
in  time  to  reach  the  American  Expeditionary  Forces  before  the  sign- 
ing of  the  armistice. 

The  American  company,  however,  when  finally  authorized  by  the 
Government  to  build  200  sets  of  Gibbs  apparatus,  made  delivery 
within  90  days.  This  form  of  apparatus,  developed  by  engineers  of 
the  Bureau  of  Mines  at  a  cost  of  many  thousands  of  dollars,  was  man- 
ufactured under  license  from  the  United  States  Government.  The 
apparatus  was  made  not  only  during  the  war  but  has  since  been  in- 
troduced throughout  the  mining  regions  of  this  country  and  Canada, 
replacing  both  German  and  English  equipment. 

Compaa'dbility. — There  are  now  two  standard  makes  of  flame 
safety  lamps,  one  made  by  the  Koehler  Manufacturing  Co.,  of  Marl- 
boro.vMass.,  and  the  other  by  the  Wolf  Safety  Lamp  Co.  of  America, 
Brooklyn,  X.  Y.  Both  of  these  lamps  are  more  serviceable  and  prac- 
tical than  any  foreign  lamp  developed  prior  to  the  advent  of  the 
American  industry,  and  they  have  the  approval  of  the  United  States 
Bureau  of  Mines.  There  is  no  foreign  oxygen  breathing  apparatus 
that  satisfactorily  meets  the  specifications  laid  down  by  the  Gov- 
ernment in  connection  with  their  tests  for  equipment  of  this  char- 
acter. 

Rates  suggested. — Since  the  Bureau  of  Mines  has  no  authority  to 
enforce  the  use  of  standard  approved  mine  safety  equipment,  a  pro- 
tective tariff  would  be  a  means  of  safeguarding  the  American  mining 
industry. 

Kern-arks. — As  none  of  the  foreign  flame  safety  lamps  have  been  ap- 
proved by  the  Bureau  of  Mines,  there  is  no  good  reason  why  such 
equipment  should  remain  on  the  free  list,  thus  allowing  inferior,  un- 
approved  safety  lamps  to  come  in  competition  with  American  lamps. 
There  are  several  electric  safety  cap  lamps  manufactured  in  this 
country,  but  the  principal  one  is  that  perfected  by  the  Edison  Stor- 
age Battery  Co..  of  Orange,  N.  J.,  in  1914,  and  approved  for  gen- 
eral mining  use  by  the  Bureau  of  Mines  early  in  1915.  Inferior  elec- 
tric safety  cap  lamps  can  readily  be  imported  from  Germany  and 
sold  in  competition  with  the  higher  priced  domestic  lamps. 

PARAGRAPH  393. — SPRING  CI>OTHESPINS. 

WITNESSES. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Demeritt  Co.,  Waterhury,  Vt..  and  the  U.   S.  Clothespin  Co.,  Mont- 
pelier,  Vt.     (Joint  brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  selling  price  of  40. cents  per  gross 
for  domestic  pins  does  not  represent  the  cost  of  manufacture,^  as  the 
price  has  been  reduced  in  an  effort  to  compete  with  recent  German 
importations. 


250  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

Size  of  industry. — There  are  six  manufacturers  of  spring  clothes- 
pins in  the  United  States.  The  two  joining  in  the  present  statement 
have  a  combined  output  of  about  $185,000  per 'year,  and  employ  85 
people  at  an  average  daily  wage  of  $3  to  $4. 

Comparability. — Two  years  ago  German  clothespins  were  being 
sold  in  Sweden  at  6£  marks  per  gross.  The  lowest  price  at  which 
spring  clothespins  are  now  being  sold  in  the  United  States  is  40  cents 
per  gross  and,  assuming  that  the  German  price  has  been  advanced  to 
8  marks  per  dozen,  a  duty  of  35  per  cent  ad  valorem  would  permit 
their  sale  in  New  York  at  20  cents  per  gross,  plus  freight  and  selling 
expense.  This  is  confirmed  by  a  quotation  of  30  cents  per  gross  by 
importers.  Before  the  war,  spring  clothespins  were  imported  in  large 
quantities  from  Germany,  Xorway,  and  Sweden,  and  were  sold  at 
from  18  to  21  cents  per  gross — one-third  less  than  the  domestic  cost. 

Rates  suggested. — Spring  clothespins  made  from  wood  and  wire 
to  be  specifically  mentioned,  and  made  dutiable  at  60  per  cent  ad 
valorem. 

PARAGRAPH  393.— TWIST  DRILLS. 


REQUESTING  RECLASSIFICATION  : 

H.  Boker  &  Co.,  New  York  City,  importers.      (Brief;   no  appearance  at 
hearings. ) 

Size  of  industry. — About  23  American  manufacturers  are  pro- 
ducing twist  drills,  the  output  in  the  year  1920  being  approximately 
$40,000,000.  Exports  of  domestic  twist  drills  have  for  many  years 
been  a  very  large  item. 

Comparability. — British  1-inch  taper-shank  twist  drills  are  now 
quoted  in  Liverpool  at  $3.10.  An  Amercian  drill  of  the  same  type 
is  sold  at  $4.50.  Under  the  proposed  tariff,  the  duty  on  the  British 
product  would  be  $1.58 ;  landing  charges,  $0.16,  and  selling  expenses, 
$1.09.  would  bring  up  the  total  landed  cost  to  $5.44.  without  the 
importer's  profit.  The  cost  of  French,  Swedish,  and  German  drills 
has  been  found  to  be  much  higher  than  that  of  British-made  goods. 

Rates  suggested. — Twist  drills  to  be  taken  out  of  the  "  basket  " 
paragraph,  and  placed  in  paragraph  340,  with  saws,  dutiable  at  15 
per  cent  ad  valorem. 

VARIOUS  PARAGRAPHS  (AS  BELOW). — ORE  AXD  METAL  PRODUCTS. 

WITNESS.  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.    Herbert    W.    Smith,    representing    the    American    Mining    Congress; 
address,  Washington,  D.  C. 

Hearings.  Pages  1607-1614. 

RATES    SUGGESTED. 

Par.  1.  Arsenic. — Recommends  specific  rate  of  from  3  to  5  cents 
per  pound  in  place  of  the  ad  valorem  rate  proposed. 

Par.  64.  Barytes. — Approves  rate  proposed  by  Hon.  M.  E.  Rhodes. 

Par.  1523.  Bismuth. — Suggests  25  cents  per  pound  to  give  smelters 
an  incentive  to  save  it  and  thus  conserve  the  country's  resources. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  251 

Par.  1539.  Cadmium. — Suggests  25  cents  per  pound  for  same 
reason. 

Par.  211.  Graphite. — Approves  rates  proposed  by  Mr.  Weed. 

Par.  389.  Lead. — Electric  storage  batteries  and  plates,  paragraph 
320,  are  largely  manufactured  of  lead;  manufacturers  desire  40  per 
cent  duty  to  bring  this  product  into  line  with  other  lead  manu- 
factures. 

Par.  302.  Manganese  ore  reserves  and  productive  capacity  are 
adequate,  in  witness's  opinion. 

One  ton  ferromanganese  requires  2^  tons  ore.  The  prewar  cost 
was  $30  to  $40  per  ton ;  present  cost  is  $65. 

Par.  47.  Magnesite. — Wage  rates  in  Austria  are  less  than  the  male 
base  rate  of  $1  per  day,  because  of  women  employed. 

Par.  383.  Quicksilver. — A  slight  adjustment  is  necessary  to  cor- 
respond to  rate  on  mercury  compounds  in  schedule  1. 

Par.  391.  Zinc. — Desires  changes  as  recommended  by  Mr.  Ruhl  and 
other  witnesses,  making  the  temporary  provision  permanent. 

Pars.  286  and  1670.  Tin.— Tin  smelters  in  the  United  States  use 
Bolivian  ore  and  compete  against  foreign  metal.  The  industry  asks 
for  a  duty  of  5  cents  per  pound  on  tin  ore  ajid  10  cents  per  pound 
on  the  metal.  Witness  suggests  4  cents  rate  on  metal,  with  ore  free. 

Par.  374.  Aluminum. — In  view  of  new  aluminum  developments  on 
the  Pacific,  the  witness  recommends  an  increase  in  duty  on  aluminum 
to  7  cents  per  pound  on  block  or  pig  and  11  cents  on  sheet.  The 
proposed  rates  of  5  cents  and  9  cents,  respectively,  are  the  minimum. 

SCHEDULE  4. — WOOD  AND  MANUFACTURES  OF. 
PARAGRAPH  402. — LOGS,  FIR,  SPRUCE,  CEDAR,  AXD  HEMLOCK. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  W.  D.  B.  Dodson,  representing  Columbia  River  Loggers'  Information 
Bureau,  Portland,  Me.     (Brief.) 

Hearings :  Pages  2103-2106. 

Size  of  industry. — There  are  32  shingle  mills  in  the  Columbia  River 
district  which  are  absolutely  dependent  upon  independent  loggers 
for  their  raw  material.  The  flooding  of  the  American  market  with 
Canadian  shingles  would  close  down  these  mills  and  would  result  in 
the  accumulation  and  waste  of  cut  cedar  in  the  entire  area.  This 
would  throw  hundreds  of  men  out  of  employment,  and  make  it  neces- 
sary for  the  fir  product  of  the  logging  camps  to  carry  the  burden  of 
loss  and  waste  in  cedar  cut.  The  same  condition  would  prevail  in 
the  Puget  Sound  and  Gray  Harbor  districts.  At  present,  one  Cana- 
dian operator  is  selling  rafts  of  cedar  logs  in  Puget  Sound. 

In  the  Columbia  Eiver  district  alone,  in  western  Oregon,  there  are 
to-day  48  independent  logging  operators.  A  table  showing  the 
number  of  feet  of  timber  and  the  names -of  the  owners,  in  western  and 
eastern  Oregon,  will  be  found  on  page  2106. 

Rates  suggested. — A  protective  tariff  is  desired  as  being  the  only 
means  to  protect  the  American  shingle  market.  While  a  mere  anti- 
dumping act  would  not  be  a  sufficient  protection  against  the  Cana- 
dian product,  it  is  proper  to  notice  that  the  Canadian  Parliament, 


252  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

by  act  of  1907,  has  protected  the  Canadian  Provinces  against  dump- 
ing into  Canada  by  foreign  countries.  Tariff  protection  against 
Canadian  competition  is  needed.  Cheap  product  from  a  foreign 
country,  if  not  met  by  a  tariff,  will  kill  the  American  wood  industry. 
Remarks. — At  present  there  are  no  logging  camps  on  the  Columbia 
River  nearer  than  9  miles  to  the  booming  grounds.  In  the  State  of 
Washington,  where  the  lumber  industry  has  been  more  active  for  a 
long  period  of  time,  the  logging  camps  are  still  farther  remote  from 
tidewater.  In  British  Columbia,  where  the  logging  industry  is  of 
more  recent  undertaking,  there  is  much  timber  directly  on  tidewater, 
and  also  a  far  greater  amount  on  short  rail  hauls  to  booms.  This 
short  haul  gives  Canada  a  far  greater  advantage  on  the  original  cost 
of  input  of  the  logs  into  the  water.  The  navigable  waters  reach  far 
inland,  which  will  give  them  a  very  great  advantage  over  a  long 
period.  Canadian  labor  is  another  advantage,  orientals  being  em- 
ployed on  a  9-hour  and,  in  some  instances,  on  a  10-hour  schedule, 
whereas  American  labor  works  only  8  hours,  at  far  better  pay. 

PARAGRAPH  402. — PULP  WOOD. 

* 

WITNESSES. 
REQUESTING  MODIFICATION  : 

Paper   pulp   manufacturers   of   Pennsylvania.     (Brief;    no   appearance   at 
hearings. ) 

Remarks. — These  manufacturers,  believing  the  intent  of  para- 
graph 402  of  Schedule  4  to  be  to  protect  pulp  wood,  regard  its  present 
form  as  tending  in  the  opposite  direction.  As  the  paragraph  is 
written,  it  might  invite  Canada  to  impose  an  export  duty  on  logs 
cut  from  freehold  lands,  in  which  case  the  duty  imposed  by  the  para- 
graph would  immediately  apply.  This  would  play  into  the  hands  of 
those  who  would  restrict  the  exportation  of  wood  from  such  lands 
or  impose  an  export  duty  on  such  woods.  It  is  asked,  in  order  to 
leave  pulp  wood  on  the  free  list  beyond  all  doubt,  that  the  words 
"  other  than  pulp  wood  "  be  inserted  after  the  word  "  hemlock "  in 
line  18,  page  77  of  the  bill. 

PARAGRAPH  404. — LOGS,  MAHOGANY,  AND  OTHER  HARDWOOD. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Joseph   S,.  Auerbach,  representing  the  Mahogany  Association  of  the 

United  States. 

The  Mahogany  Association  of  America,  and  50  others.     (Brief.) 
Mr.    Thomas   Williams,    representing    the    Mahogany    Association    of    the 

United  States  and  Ichabod  T.  Williams  &  Sons. 

Mr.  Reuben  Arkush,  representing  Williard  Hawes  &  Co.,  New  York  City. 
Mr.  Frank  G.  Otis,  representing  Otis  Manufacturing  Co.,  New  Orleans,  La. 
Palmer  &  Parker  Co.,  importers  and  manufacturers  of  mahogany,  Boston, 

Mass.     (Brief.) 

The  Rica  Veneer  &  Lumber  Co.,  Grand  Rapids,  Mich.     (Brief.) 
The  Henry  H.  Sheip  Manufacturing  Co.,  Philadelphia,  Pa.     (Brief.) 

Hearings :  Pages  2106-2107. 

Witness:  Mr.  Joseph  S.  Auerbach,  representing  the  Mahogany 
Association  of  the  United  States. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  253 

Kates  suggested. — The  proposed  duty  of  10  per  cent  on  mahogany 
and  other  hardwood  logs,  and  15  per  cent  duty  on  manufactured 
lumber,  will  give  only  a  negligible  return  to  the  Government.  The 
expense  of  handling,  measurements,  etc.,  will,  as  at  present,  be 
largely  in  excess  of  this  duty.  Accordingly,  a  uniform  governmental 
policy,  time  out  of  mind,  to  let  in  free  of  duty  raw  materials  not 
produced  or  producible  here  and  impose  reasonable  protection  upon 
the  manufactured  article,  is  wholly  departed  from  without  benefit  to 
the  Government  and  with  distinct  disadvantage  to  the  importer  and 
manufacturer.  Other  witnesses  would  show  that  the  burden  would 
amount  to  a  great  deal  more  than  the  10  per  cent  ad  valorem  duty. 

Witnesses:  The  Mahogany  Association  of  America,  and  50  others. 
(Brief  submitted  in  24-page  pamphlet  form  to  the  Senate  Com- 
mittee on  Finance  by  Davies,  Auerbach,  and  Cornell,  counsel  for 
objectors.) 

It  is  stated  that  paragraph  404  of  H.  R.  7456  represents  a  radical 
departure  from  a  uniform  governmental  policy  in  tariff  legislation — 
the  policy  of  keeping  on  the  free  list  raw  material  not  produced 
or  producible  in  this  country,  and  imposing  a  duty  upon  the  manu- 
factured article  only.  The  parties  now  presenting  their  views  in 
opposition  to  this  new  departure  ask  only  that  mahogany  and  other 
tropical  hardwood  logs  be  permitted  to  remain  on  the  free  list. 

Xo  gain  will  accrue  to  the  Government  from  the  proposed  dutyr 
as  the  additional  cost  of  measuring,  handling,  and  so  forth,  would 
greatly  exceed  the  $450,000  gross  derivable  from  the  duty. 

Other  portions  of  the  pamphlet  discuss  in  detail  the  potential 
conditions  entailed  by  a  duty,  as  affecting  landing  costs,  the  manu- 
facturers concerned,  steamship  and  other  transportation  companies, 
and  American  labor.  Under  all  these  heads,  detrimental  results  are 
to  be  looked  for  and  even  more  far-reaching  injury  will  be  inflicted 
upon  American  export  trade.  Manufacturing  interests  would  have 
to  surrender  for  a  long  time  any  hope  of  continuing  that  trade.  It 
is  suggested  that  instead  of  adding  new  burdens  to  industry  at  a  time 
of  general  business  depression,  the  success  of  business  should  be  pro- 
moted by  legislation  where  needed  to  that  end. 

The  closing  16  pages  of  the  pamphlet  are  taken  up  by  a  transcript 
of  minutes  of  hearings  before  the  Senate  Committee  on  Finance, 
August  27,  1921.  at  which  several  of  the  recorded  objectors  testified 
in  the  spirit  of  the  brief. 

Hearings :  Pages  2108-2112. 

Witness :  Mr.  Thomas  Williams,  representing  the  Mahogany  Asso- 
ciation of  the  United  States  and  Ichabod  T.  Williams  &  Sons. 

Size  of  industry.— Probably  $25,000.000  has  been  invested  in  the 
manufacturing  of  hardwoods  and  in  the  establishment  of  agencies 
in  the  Tropics  for  production. 

Rates  suggested. — The  witness  opposes  the  proposed  import  duty 
upon  mahogany  and  other  hardwoods.  Logs  of  tropical  hardwoods 
are  imported  from  Africa,  Central  America,  and  Mexico,  almost  ex- 
clusively on  American  bottoms,  and  are  imported  practically  ex- 
clusively by  American  manufacturers  and  importers.  The  business 
represents  a  great  many  steamers.  The  imposition  of  the  proposed 
tax  would  divert  the  importation  of  mahogany  logs  to  foreign  coun- 
tries, and  would  lead  to  the  manufacturing  of  such  logs  into  lumber 


254  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

and  veneers  in  foreign  countries  for  ultimate  importation  into  the 
United  States  by  foreign  interests.  This  duty  on  raw  material 
would  injure  the*  American  mechanic  and  would  affect  hundreds  of 
thousands  of  men.  In  1920  the  importations  of  mahogany  and  cedar 
logs  into  America  was  about  50,000,000  feet,  representing  approxi- 
mately a  value  of  $4,500,000. 

Hearings:  Pages  2112-2114. 

Witness:  Mr.  Reuben  Arkush,  representing  Williard  Hawes  &  Co., 
New  York  City. 

Size  of  industry. — Mills  for  converting  the  logs  into  lumber  and 
veneers  are  established  in  New  York  and  vicinity,  Philadelphia. 
Baltimore,  Louisville.  Xew  Orleans,  Mobile.  Cincinnati,  Cleveland, 
Indianapolis,  and  in  all  the  important  Middle  West  cites. 

Rates  suggested. — The  witness  protests  against  the  proposed  duty 
on  rough  mahogany  and  cedar  logs,  and  other  rough  cabinet  woods. 
Millions  of  dollars  are  invested  in  American  mills  for  converting 
logs  into  lumber  and  veneers.  To  impose  a  duty  on  these  logs  will 
only  encourage  the  building  of  mills  in  Mexico,  Cuba,  and  other 
places  of  production.  As  none  of  these  woods  grow  in  this  country, 
a  duty  is  not  required  for  protection.  Importation  of  these  hard- 
woods has  been  encouraged  to  protect  the  diminishing  supply  of  do- 
mestic hardwoods.  The  10  per  cent  duty,  plus  the  additional  cost 
by  reason  of  delaj-s  and  rehandling,  would  considerably  enhance  the 
price  of  mahogany  and  cedar  lumber  to  the  manufacturer,  which 
would  be  reflected"  in  the  cost  of  furniture  to  the  consumer.  The 
witness  sees  no  benefit  in  the  proposed  tax  and  only  a  great  handi- 
cap to  the  industry. 

Hearings:  Pages  2114-2117. 

Witness:  Mr.  Frank  G.  Otis,  representing  Otis  Manufacturing 
Co.,  Xew  Orleans.  La. 

Costs  and  selling  prices. — The  price  paid  for  1,000  feet  of  ma- 
hogany lumber,  in  the  log,  varies  from  $80  to  $100,  and  the  cost  of 
freight  amounts  to  about  $40  or  $50.  The  average  selling  price  on 
the  company's  log  run  is  about  $160  to  $170.  The  average  net  profit 
on  sales  is  about  10  per  cent. 

Size  of  industry. — There  are  about  10  mills,  representing  an  in- 
vested capital  of  approximately  $20.000,000.  The  sawing  of  the  logs 
is  an  important  item  in  the  manufacture,  and  requires  the  employ- 
ment of  thousands  of  laborers. 

Rates  suggested. — The  company  is  opposed  to  the  proposed  duty, 
thinking  that  no  benefit  will  be  derived  therefrom.  A  brief  sub- 
mitted by  50  leading  importers  and  manufacturers  includes  a  table  of 
expenses  (see  p.  2116)  which  will  necessarily  result  from  the  duty. 
The  total  expense  is  given  as  $10,925.05,  against  which  the  amount  of 
duty  collected  would  not  exceed  $5,000,  showing  a  serious  and  direct 
loss  to  American  shipping  and  to  the  importer  and  subsequent  manu- 
facturer. It  is  urged  that  the  present  provision  of  the  Payne- 
Aldrich  tariff  bill  be  left  undisturbed. 

Witness:  Palmer  &  Parker  Co.,  importers  and  manufacturers  of 
mahogany.  (Brief:  no  appearance  at  hearings.) 

Remarks. — The  firm  strenuously  opposes  any  duty  on  logs,  such 
as  mahogany,  cedar,  etc.  The  firm  has  been  in  business  since  1833 
and  has  never  paid  duty  on  logs.  It  approves  of  a  duty  on  lumber. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  255 

The  effect  of  the  15  per  cent  duty  proposed  in  H.  R.  7456  would 
be  that  foreigners  would  start  up  mills  and  no  mahogany  would  be 
sawed  in  this  country.  As  a  means  of  meeting  the  competition  thus 
set  up  with  the  aid  of  cheap  labor,  and  in  order  to  conserve  capital 
invested  in  west  Africa,  it  might  become  necessary  for  the  firm  to 
erect  a  mill  in  that  country. 

Witness:  The  Rice  Veneer  &  Lumber  Co.,  Grand  Rapids,  Mich. 
(Brief;  no  appearance  at  hearings.) 

Remarks. — The  brief  is  a  protest  against  the  proposed  duty  on 
mahogany  and  cedar  logs.  These  materials  are  not  produced  in  this 
country,  but  mills  for  their  manufacture  have  been  erected,  includ- 
ing a  neAv  one  for  the  company.  The  proposed  duty  would  put  these 
mills  out  of  commission  and  deprive  many  persons  of  employment. 
The  sawing  would  be  done  at  the  ports  of  export. 

Other  points  made  are  the  disproportionate  cost  of  measuring  and 
handling  at  the  ports  of  entry,  and  the  inroad  which  would  be  made 
upon  the  domestic  supply  of  hardwood,  already  greatly  depleted. 

Witness :  The  Henry  H.  Sheip  Manufacturing  Co.,  Philadelphia, 
Pa.  (Brief;  no  appearance  at  hearings.) 

Remarks. — The  firm  not  at  present  in  the  cedar  business,  but 
handling  other  tropical  hardwoods,  refers  to  the  insistent  cry  to  save 
the  redwood  forests.  The  proposed  imposition  of  a  10  per  cent  duty 
on  Spanish  cedar  logs  will  kill  cedar  imports,  just  when  there  is  a 
tendency  to  revert  to  that  wood  for  cigar  boxes,  after  having  been 
too  expensive  during  the  war.  With  such  duty,  California  redwoods 
will  go  on  being  cut  down  for  cigar  boxes. 

PARAGRAPH  405. — POLES,  CEDAR. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  T.  M.  Lane,  attorney,  representing  the  cedar  pole  industry. 

Hearings:  Pages  2117-2130. 

Costs  and  selling  prices. — Poles  are  generally  sold  in  America  at 
price  delivered  at  destination  and,  naturally,  selling  prices  in  the 
United  States  are  as  varied  as  the  points  of  delivery. 

Size  of  industry. — The  annual  consumption  in  the  United  States 
is  estimated  at  from  3.500,000  to  5,000,000  poles,  95  per  cent  of  which 
are  cut  from  domestic  forests.  About  5  per  cent  of  the  poles  are 
imported. 

Rates  suggested. — The  witness  submitted  a  brief  requesting  that  ad 
valorem  classification  of  cedar  poles  be  abolished,  and  that  they  be 
given  the  same  treatment  as  the  other  round  timber  in  the  act.  All 
other  round  timber  is  either  free  or  dutiable  at  a  specific  rate,  poles 
being  the  only  exception.  It  is  suggested  that  cedar  poles  be  placed 
in  the  same  classification  as  poles  used  for  telegraph  wire,  under 
paragraph  401.  The  industry  would  be  satisfied  with  a  specific  duty, 
but  urges  that  poles  be  put  on  the  free  list  instead  of  dutiable  at  iO 
per  cent  upon  American  valuation.  Changes  are  also  suggested  in 
paragraphs  401,  402.  405.  and  1683.  (See  page  2129.) 

Remarks. — It  takes  150  years  to  grow  a  30-foot  pole  in  Michigan 
and  from  75  to  100  years  to  grow  the  same  pole  in  the  northwestern 


256  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

part  of  the  United  States.  At  the  present  rate  of  consumption  the 
supply  will  be  exhausted  within  this  generation.  There  is  a  great 
scarcity  of  poles  in  the  United  States.  Poles  are  a  cheap  commodity 
on  which  freight  is  relatively  high. 

PARAGRAPH  408. — SHINGLES,  CEDAR. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   George  A.  Bergstrom,   representing  the  Pacific  Timber  Co.,  Everett, 

Wash. 

Mr.  E.  E.  Case,  Raymond,  Wash.,  representing  himself  as  manufacturer. 
Mr.  W.  C.  McMasters,  representing  the  McMasters  Shingle  Co.,  Ken  more, 

Wash. 

Hearings :  Pages  2130-2135. 

"Witness:  Mr.  George  A.  Bergstrom,  representing  the  Pacific 
Timber  Co.,  Everett,  Wash. 

Costs  and  selling  prices:—  The*  witness  states  that  at  the  time  of 
closing  the  company's  mill  the  price  of  the  average  cedar  log  of  Brit- 
ish Columbia  mills  was  $16  per  thousand  delivered  at  the  mill,  while 
the  American  cost  was  $18  base,  or  an  average  of  $19.  This  makes 
the  operation  of  the  American  mills  impossible  under  existing  con- 
ditions, as  it  practically  involves  a  differential  of  $3  per  thousand  in 
favor  of  British  Columbia  mills  for  the  raw  material.  The  selling 
price  of  shingles  is  $2.60  on  ordinary  clears.  With  30  per  cent  labor, 
about  20  per  cent  overhead,  and  about  50  per  cent  raw  material,  no 
profit  is  left. 

Size  of  industry. — The  company  has  invested  $200,000  in  the  in- 
dustry and  employs  100  American"  laborers. 

Comparability. — Red  cedar  in  the  Province  of  British  Columbia 
amounts  to  125,000,000,000  feet  as  compared  with  25,000,000.000  feet 
remaining  in  the  State  of  Washington  and  12,000,000,000  feet  re- 
maining in  the  State  of  Oregon.  White  labor  in  Canada  costs  $3.60 
for  nine  hours'  work,  or  40  cents  per  hour.  Domestic  wages  are  $3.60 
for  eight  hours,  or  45  cents  per  hour;  other  white  labor  in  pro- 
portion. 

Rates  suggested. — The  company  favors  the  50  cent  per  thousand 
rate  on  shingles  proposed  in  H.  R.  7456. 

Hearings:    Pages  2135-2144. 

Witness:    Mr.  E.  E.  Case,  representing  himself,  as  manufacturer. 

Comparability. — At  least  50  per  cent  of  the  shingle  mills  in  Ore- 
gon and  Washington  are  shut  down,  while  the  Canadians  have  been 
running  their  mills  at  full  capacity.  About  80  per  cent  of  all  the 
shingles  that  British  Columbia  cuts  is  sent  to  the  United  States, 
while  the  American  mills  are  closed  and  the  railways  idle.  In  1920 
the  Oregon  and  Washington  manufacturers  utilized  700,000.000  feet 
of  cedar  logs,  and  14,000,000  feet  were  imported  from  Canada.  Can- 
ada has  the  advantage  of  cheap  labor,  and  transportation  facilities 
with  cheaper  rates.  The  Canadian  mills  have  increased  300  or  400 
per  cent  since  the  tariff  on  shingles  was  taken  off. 

Kates  suggested. — The  witness  regards  the  request  of  60  cents  per 
1,000  on  shingles  as  very  moderate. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456,  257 

Remarks. — The  greatest  detriment  to  the  American  shingle  and 
cedar  log  industry  is  the  lack  of  transportation  facilities,  coupled 
with  high  freight  rates.  High  labor  cost  is  another  hindrance.  Sub- 
stitutes have  also  been  detrimental. 

Hearings :  Pages  2144-2145. 

Witness:  Mr.  W.  C.  McMasters,  representing  the  McMasters 
Shingle  Co. 

Rates  suggested. — The  company's  concern  took  a  referendum  of 
Washington  and  Oregon  shingle  mills  and  found  that  the  majority 
favor  the  50  cents  per  1,000  shingles  as  proposed  in  H.  R.  7456.  The 
witness  has  many  letters  on  file,  stating  that  the  British  Columbia 
mills  are  underselling  the  American. 

PARAGRAPH  411. — REED  AND  RATTAN. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Charles  H.  Demarest,  representing  the  Rattan  and  Reed  Importers'  As- 
sociation. 

Mr.  William  S.  Ferris,  representing  the  Sidway  Mercantile  Co. 

Mr.  Carl  Gerdau,  representing  the  Otto  Gerdau  Co. 

The  S.  A.  Jacobson  Co.  (Inc.),  importers  and  commission  merchants,  New 
York  City.  (Brief.) 

Hearings:  Pages  2145-2149. 

Witness:  Mr.  Charles  H.  Demarest,  representing  the  Rattan  and 
Reed  Importers'  Association. 

Cost  and  selling  prices. — Reed  and  rattan,  unmanufactured,  sell  in 
the  market  to-day  at  9  cents  per  pound,  and  cost  landed  at  New  York 
approximately  7  cents  per  pound.  In  large  quantities  they  sell  at  7-| 
and  8  cents.  The  machine-made  reed  is  used  in  the  manufacture  of 
chairs  and  sells  from  25  to  35  cents  and  up  to  60  cents  per  pound,  and 
even  higher  for  the  smaller  sizes. 

Size  of  industry. — There  are  about  10  manufacturers  in  America 
who  make  the  machine-made  reed,  mainly  for  their  own  use. 

Rates  suggested. — A  brief  filed  by  the  witness  points  out  that  a  duty 
of  20  per  cent,  based  on  the  value  of  machine-cut  reed  of  comparable 
size  used  by  broom  manufacturers,  would  make  the  duty  12  cents  a 
pound  on  7-cent  reed,  and  therefore  restrict  manufacturers  from 
using  the  material,  In  other  words,  there  would  be  a  150  per  cent 
duty  assessed  on  reed,  hand  made.  The  industry  wants  a  specific 
duty  on  the  better  qualities"and  less  than  20  per  cent  on  the  cost  value. 
Reeds  unmanufactured  should  stay  on  the  free  list.  The  witness  sug- 
gests several  changes  in  paragraphs  411  and  1683.  A  10  per  cent  ad 
valorem,  or  a  specific  duty  of  2  cents  per  pound,  should  be  placed  on 
rattan,  which  is  also  a  raw  material,  and  on  the  free  list  under  the 
present  and  previous  tariffs. 

Remarks. — Crude  hard-cut  reeds  are  imported  from  China,  mainly 
for  use  in  brooms  and  baskets,  the  better  selections  for  cheap  chairs, 
furniture,  etc.  Machine-cut  reed,  imported  from  Germany  and  China, 
compares  in  value  with  machine-cut  reed  made  in  America,  by  a  few 
American  manufacturers  only,  mainly  for  their  own  use. 


258  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

Hearings :  Pages  2149-2155. 

Witness:  Mr.  William  S.  Ferris,  representing  the  Sidway  Mer- 
cantile Co.,  Elkart,  Ind. 

Costs  and  selling  prices. — China  hand-cut  reed  is  worth  from  15  to 
25  cents  per  pound.  The  price  of  Chinese  reed  is  20  cents  per  pound, 
and  of  American  reed,  40  cents  per  pound.  In  April,  1921,  the  best 
grade  of  machine-cut  reed,  Chinese,  was  offered  for  31  to  34  cents  per 
pound,  carrying  charges  to  port  of  entry  and  duty  paid.  American 
machine-cut  of  the  same  grade  was  40  cents  per  pound. 

Size  of  industry. — There  are  about  10  American  cutters  of  reed,  4r 
of  whom  are  manufacturers  of  reed  furniture ;  2  are  large  operators. 
The  approximate  investment  in  this  industry  is  $3,000,000  and  it 
employs  about  600  operatives.  There  are  130  'manufacturers  of  reed 
products.  The  baby-carriage  manufacturers  have  a  capital  invest- 
ment of  about  $15,000,000  and  employ,  under  normal  conditions, 
about  8,000  operatives.  Therefore,  upward  of  100  manufacturers  of 
furniture  have  an  investment  of  about  $40,000,000,  and  employ 
normally  27,000  operatives.  The  cost  of  labor  varies  with  the  class 
of  work  from  25  to  30  cents  per  hour. 

Rates  suggested. — The  rate  on  rattan  to  be  10  per  cent.  If  the  rate 
is  increased  to  20  per  cent,  it  will  be  to  the  advantage  of  the  10 
American  cutters  of  reed  only ;  the  130  manufacturers  of  reed  prod- 
ucts would  be  placed  at  a  distinct  disadvantage  and  the  additional 
amount  would  be  taken  from  the  profits  or  passed  on  to  the  consumer. 

Remarks. — Reed  is  absolutely  essential  in  the  manufacture  of  baby 
carriages  and  reed  furniture;  no  substitute  material  of  equal  value 
has  been  found.  Xo  other  single  item  of  material  entering  into  the 
cost  of  baby  carriages  and  reed  furniture  equals  the  value  of  the 
reed  used.  It  is  impracticable  for  a  large  number  of  concerns  to  cut 
reed  in  the  United  States,  because  of  the  limited  market  for  the  by- 
products, which  represents  at  least  25  per  cent  of  the  rattan.  Some 
conception  of  the  profit  may  be  obtained  by  consulting  a  table  on 
page  2140.  as  part  of  a  brief  submitted  by  a  great  many  concerns.  A 
supplementary  brief  controverts  the  claims  made  by  another  witness 
that  a  satisfactory  substitute  for  reed  is  being  largely  used  by  baby- 
cafriage  manufacturers.  • 

Hearings :  Pages  2155-2156. 

Witness :  Mr.  Carl  Gerdau,  representing  the  Otto  Gerdau  Co. 

Rates  suggested. — The  present  duty  of  10  per  cent  on  reeds  and 
cane  and  the  20  per  cent  as  proposed  in  H.  R.  7456  are  both  too  high. 
Both  reeds  and  rattan  should  be  placed  oh  the  free  list.  The  few 
large  furniture  manufacturers  desire  a  tariff  on  reeds,  because  a 
tariff  will  aid  their  furniture  business  and  keep  thousands  of  the 
smaller  competitors  entirely  without  reeds  or  cane,  or  enable  the 
former  to  sell  to  them  at  prices  sufficiently  high  to  make  serious  com- 
petition in  furniture  impossible.  There  is  absolutely  no  reason  to 
fear  competition  with  Chinese  handmade  reeds,  this  being  so  in- 
ferior that  it  does  not  compete  against  American  reed.  This  argu- 
ment is  brought  up  only  with  the  purpose  of  obtaining  a  monopoly 
of  the  reed-furniture  industry  through  a  tariff  on  reeds.  By  placing 
reeds  on  the  free  list  the  small  wicker-ware  manufacturers  who  do 
not  cut  their  own  reeds,  and  the  few  large  manufacturers  who  cut 
their  own  reeds  and  cane,  will  be  placed  on  a  fair  and  equal  basis. 

Remarks. — In  a  brief  dated  August  6,  1921,  the  company  discusses 
at  length  the  origin  of,  and  the  manufacturing  methods  applied  to, 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  259 

the  material  known  as  rattan — "  a  long,  flexible  stick,  growing  only  in 
the  Far  East."  Reference  is  made  to  the  leading  American  firms 
in  this  business,  only  one  of  which  devotes  itself  exclusively  to  re« 
moving  the  bark  of  the  rattan,  with  the  object  of  placing  the  bark 
and  the  core  on  the  market  for  the  thousands  of  smaller  furniture, 
baby  carriage,  and  basket  manufacturers.  It  is  alleged  that  the 
large  manufacturers  have  always  desired  to  put  their  many  small 
competitors  out  of  business  by  means  of  a  prohibitive  duty  dn  reeds 
and  chair  canes.  In  this  connection  the  brief  states  that  the  proposed 
20  per  cent  tariff  would  benefit  only  the  half  dozen  large  furniture 
manufacturers,  employing  only  a  few  hundred  in  the  cutting  of  the 
rattan.  Prewar  conditions  are  so  changed  that  foreign  competi- 
tion in  reeds  and  canes  is  no  longer  to  be  feared.  In  these  circum- 
stances American  manufacturers  can  well  afford  to  be  content  with 
no  duty  at  all  on  these  materials. 

Witness:  S.  A.  Jacobson  Co.  (Inc.),  importers  and  commission 
merchants,  Xew  York  City. 

(Brief;  no  appearance  at  hearings.) 

Remarks. — The  brief  protests  against  the  application  of  the  Ameri- 
can valuation  plan  to  imports  of  reeds  from  Germany,  France,  Eng- 
lancl.  and  China.  This,  it  is  alleged,  would  bring  about  a  prohibition 
of  imports.  There  are  six  or  eight  American  manufacturers  of  reeds, 
with  different  prices  on  the  various  sizes  and  qualities,  so  that  a 
proper  valuation  by  the  customs  authorities  would  be  impossible. 

Not  only  so,  but  "a  duty  on  that  basis  would  penalize  the  thousands 
of  users  of  reeds  in  this  country. 

PARAGRAPH  411. — RATTAN,  REED,  AND  GRASS  FURNITURE. 
WITNESSES,  AND  INTEBESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Fred  W.  Green,  representing  the  Ypsilanti  Reed  Furniture  Co. 
FAVORING  LOWER  DUTIES  : 

Mr.  E.  F.  Ganahl,  representing  the  O'Connor-Harrison  Co.,  importers  and 

exporters. 

The   Mentzer-Piagett   Co.,    importers   and   brokers,    Grand    Rapids,    Mich. 
(Brief.) 

Hearings :  Pages  2161-2164. 

Witness:  Mr.  Fred  W.  Green,  representing  the  Ypsilanti  Reed 
Furniture  Co. 

Costs  and  selling  prices. — The  highest  price  ever  paid  for  a  ma- 
chine to  cut  reeds  was  $1,350.  The  cost  of  engaging  in  the  manufac- 
turing of  baby  carriages  is  approximately  $5,000.  The  labor  cost 
of  splitting  rattan  into  reeds  is  between  5  and  6  cents  per  pound.  . 

Rates  suggested. — The  company  is  opposed  to  the  10  per  cent  duty 
on  reed  and  to  the  new  wording.  "  unmanufactured  reeds."  German 
and  other  importers  became  wealthy  under  the  10  per  cent  duty  and 
collected  large  sums,  which  should  have  gone  to  the  United  States, 
through  conflicting  decisions  on  the  "  unmanufactured  reed  "  ques- 
tion. The  United  States  will  lose  vast  sums  of  money  if  this  phrase 
is  put  back  in  the  tariff.  The  company  does  not  think  the  20  per  cent 
rate  prohibitive,  having  found  by  calculation,  using  the  selling  price 
of  August  20,  1921,  and  the  20  per  cent  as  basis,  that  in  all  instances 
the  Chinese  price  was  below  the  domestic  for  both  handmade  and 
machine-made  reeds. 


260  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Remarks. — The  difference  between  Chinese  hand-cut  reeds  and 
machine-made  reed  lies,  to  a  large  extent,  in  the  quality  of  rattan  used 
by  the  Chinese.  The  Chinese  method  of  making  reed  is  crude  and 
cheap,  the  material  used  of  the  cheapest,  which  results  in  such  a  large 
waste  that  it  would  not  pay  to  bring  it  to  the  United  States. 

American  manufacturers  have  had  to  import  a  good  quality  of  rat- 
tan, out  of  which  they  could  not  only  get  reed,  but  also  the  outer 
part  of  the  cane.  "  Fiber,"  used  to  a  great  extent  in  making  baby 
carriages,  is  made  of  twisted  paper.  When  finished,  the  Menominee 
fiber  can  not  be  distinguished  from  the  reed;  it  is  almost  impossible 
for  an  expert  to  tell  the  difference.  The  witness  gives  the  names  of 
11  American  firms  now  engaged  in  cutting  reed  in  this  country.  The 
expense  of  establishing  the  reed  industry  is  nominal.  Labor  cost 
in  China  is  very  much  lower  than  in  the  United  States.  One  factory 
in  China  employs  about  20  men,  of  whom  at  least  15  are  blind  sol- 
diers. If  a  Chinese  merchant  gets  $3.50  for  a  chair,  he  thinks  he  is 
getting  an  enormous  sum  of  money.  China  sells  her  goods  f.  o.  b. 

Hearings :  Pages  2158-2161. 

Witness :  Mr.  E.  F.  Ganahl,  representing  the  O'Connor  Harrison 
Co.,  importers  and  exporters. 

Costs  and  selling  prices. — A  domestic  reed  chair  sells  at  retail  on 
the  Pacific  coast  for  $24  or  higher,  while  an  imported  grass  chair 
retails  at  about  $12.  Many  American  families  can  not  afford  the 
domestic  furniture,  but  can  afford  the  foreign.  A  table  is  submitted, 
as  part  of  a  brief,  showing  how  the  present  wholesale  price  of  an  im- 
ported grass  chair  is  reached. 

Comparability. — One  of  the  main  reasons  for  a  revised  tariff  is 
European  competition,  caused  solely  by  depreciated  European  ex- 
change. As  oriental  exchange  is  not  depreciated,  the  furniture  under 
discussion  is  in  an  entirely  different  class  from  the  products  of 
Europe. 

Rates  suggested. — The  witness  opposes  the  proposed  rate  of  50 
per  cent  ad  valorem  on  rattan,  reed,  and  grass  furniture,  which  would 
entirely  stop  the  importation  of  furniture  of  this  class.  American 
manufacturers  have  never  manufactured,  and  are  not  at  present  manu- 
facturing, grass,  peel,  or  rattan  furniture  to  any  extent.  The  pro- 
posed duty  of  50  per  cent  on  a  grass  chair  wrould  result  in : 

1.  An  increase  in  duty  of  $8.63,  or  2,980  per  cent. 

2.  An  increase  in  wholesale  selling  price  of  $11.83,  or  297  per  cent. 

3.  An  increase  in  retail  selling  price  of  $23.86^  or  297    per  cent. 

If  it  is  found  necessary  to  place  an  additional  duty  upon  fiber 
furniture,  a  rate  of  not  over  10  per  cent  based  on  American  valua- 
tion, or  not  over  35  per  cent  based  on  foreign  valuation,  should  be 
placed  on  rattan,  peel,  and  grass  furniture.  Any  rates  in  excess  of 
these  will  make  business  impossible.  In  the  event  that  increased 
revenue  is  not  required,  an  assessment  of  lower  rates  is  requested, 
as  these  rates  are  not  required  to  protect  American  manufacturers. 
The  wording  of  the  paragraph  should  be  changed,  as  the  term 
"  fiber "  is  extremely  ambiguous,  and,  under  the  wording  as  pro- 
posed, it  is  possible  that  Treasury  decision  would  regard  grass,  peel, 
and  rattan  as  fiber  furniture. 

Remarks. — Grass,  peel,  and  rattan  furniture  is  one  of  the  best  non- 
competing  commodities  that  can  be  imported  from  south  China. 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  261 

The  imported  furniture  is  of  an  entirely  different  quality  from  the 
domestic  reed  or  fiber  furniture. 

Comparability.— In  a  brief  dated  July  26,  1922,  the  O'Connor 
Harrison  Co.  presents  the  leading  arguments  in  support  of  the  con- 
tention against  the  proposed  duty.  While  this  stands  at  50  per  cent 
in  H.  R.  7456,  it  would  amount  to  350  per  cent  or  more  if  based  on 
American  valuation — an  "  excessive  and  prohibitive  duty."  It  is 
held  that  imported  grass,  reed,  and  peel  furniture  does  not  compete 
in  any  way  with  that  of  domestic  make,  the  qualities  being  incom- 
parable. There  would  be  a  distinct  hardship  on  the  American  pub- 
lic in  the  doubling  of  present  prices. 

AVitness :  Mentzer  Piaget  Co.,  importers  and  brokers,  Grand 
Rapids.  Mich.  (Brief;  no  appearance  at  hearings.) 

In  a  printed  circular  submitted  to  the  Committee  on  Finance, 
the  firm  asserts  that  H.  R.  7456,  as  relating  to  Chinese  sea-grass 
and  rattan  furniture,  would  increase  the  present  rate  of  duty  over 
1,300  per  cent. 

Comparability. — As  this  class  of  furniture  is  not  made  in  America, 
this  prohibitive  duty  is  not  needed  as  a  protective  measure  and 
would,  beside,  deprive  the  Government  and  the  American  merchant 
marine  of  a  substantial  revenue  through  the  reduced  volume  of  im- 
ports. The  proposed  duty  is  contrasted  with  the  rates  in  previous 
tariffs  and  the  location  of  "  a  nigger  in  the  wood  schedule  "  is  sought. 

It  is  contended  that  Chinese  sea-grass  and  rattan  furniture  should 
be  returned  to  its  proper  classification  under  paragraph  414.  Ob- 
jections to  the  American-valuation  plan  include  the  necessity  of  sell- 
ing goods  six  to  eight  months  in  advance  of  importation;  a  firm 
price,  indispensable  under  this  condition,  would  become  impossible, 
and  there  would  be  a  pyramiding  of  prices  that  would  make  the  cost 
of  Chinese  furniture  prohibitive. 

Kates  suggested. — It  is  pointed  out  that  a  duty  under  the  Ameri- 
can-valuation plan  would  be  a  duty  on  transportation  costs  as  well 
as  on  the  value  of  the  article — a  factor  of  considerable  importance 
with  bulky  articles,  such  as  those  in  question.  A  duty  of  5  per  cent 
on  that  plan  would  be  the  maximum  that  an  importer  could  pay. 

PARAGRAPH  411. — SPLIT  BAMBOO. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  F.  A.  Steiert,  representing  A.  Steiert  &  Sons. 

Hearings:  Pages  2156-2158. 

Rates  suggested. — The  witness  would  put  split  bamboo  on  the  free 
list.  He  states  that  if  the  proposed  duty  of  2  cents  a  pound,  or 
66|  per  cent,  is  placed  on  this  product  the  industry  of  making  brooms 
for  street-cleaning  purposes  will  be  eliminated,  as  will  also  about 
50  per  cent  of  the  broom  pushers  in  the  various  cities. 

Remarks. — The  split-bamboo  fiber  is  of  a  vegetable  nature  and 
grows  in  the  Orient;  it  can  not  be  gro>vn  in  America;  it  does  not 
interfere  or  compete  with  anything.    It  is  used  for  making  munici- 
pal brooms  for  street-cleaning  purposes. 
77134—22 18 


262  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

PARAGRAPH  411. — OSIER  OR  WILLOW. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  William  R.  Ryan,  representing  the  Universal  Willow  &  Reed  Ware  Co. 

Hearings :  Pages  2164-2166. 

Costs  and  selling  prices. — The  retail  price  of  a  Bar  Harbor  chair 
to-day  is  $5.  It  costs  $2.35  for  American  labor,  $2.16  for  American 
material,  total  cost,  $4.51,  no  allowance  being  made  for  overhead, 
etc.  The  imported  chair  in  May  cost  $3.95,  but,  finding  safe  compe- 
tition, was  raised  to  $4.95. 

Size  of  industry. — Before  the  war  65  per  cent  of  osier  or  willow 
used  in  the  manufacture  of  furniture  was  imported  from  Germany, 
and  about  25  per  cent  from  France.  Less  than  10  per  cent  was  grown 
in  America.  To-day  more  than  500  acres  of  osier  or  wilhnv  are 
under  cultivation,  and  about  80  manufacturers  in  the  United  States 
are  making  willow  furniture.  The  capital  invested  amounts  to  about 
$1,500,000,  and  about  5,000  people  are  engaged  in  the  manufacture. 
The  average  hours  of  labor  are  about  49|  per  week,  with  an  average 
pay  for  common  labor  of  between  30  and  35  cents  per  hour.  The 
pay  of  mechanics  and  skilled  laborers  is  between  45  and  90  cents  per 
hour. 

Comparability. — German  competition  is  feared,  as  imports  of  wil- 
low furniture  have  increased  as  follows :  In  1919,  $3,040 ;  1920, 
$28,114;  and  for  six  months,  1921,  $35,547.  An  American  firm  has 
been  approached  by  a  representative  of  a  German  corporation  and 
asked  to  give  up  its  factory  and  sell  German  willow  furniture  at 
prices  with  which  the  American  industry  can  not  compete. 

Rates  suggested. — The  wording  of  paragraph  411  to  be  changed; 
page  80,  line  4,  after  comma  following  the  word  "  bamboo  "  insert 
the  words  "  osier  or  willow " ;  line  5,  after  comma  following  the 
word  "grass"  insert  the  words  "osier  or  willow";  line  8,  strike  out 
"  25  "  in  figures  and  insert  "  10,"  which  is  the  present  rate.  If  the 
rate  on  raw  material  is  increased,  it  will  eliminate  American  manu- 
facturers. The  witness  submitted  a  brief,  from  which  the  above 
notes  are  partly  taken. 

PARAGRAPH  411. — WILLOW  FURNITURE. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  James  F.  Donnelly,  representing  the  Mentzer-Piaget  Co.,  Grand  Rapids, 
Mich. 

Hearings:  Pages  2167-2171. 

Costs  and  selling  prices. — A  chair  selling  on  the  American  market 
for  $9  wholesale  would  be  sold  at  a  loss  under  the  proposed  tariff. 
The  $4.50  left  would  have  to  include  the  cost  of  the  chair  ($2.25  at 
present  rate  of  exchange)  ;  ocean  freight,  $2  or  $2.25;  rail  freight, 
$1.81 ;  and  in  addition  pay  the  salesman's  commission  and  a  2  per  cent 
discount.  A  brief  submitted  includes  a  table  of  costs  of  a  typical 
Chinese  chair  under  various  tariff  rates.  (See  p.  2153.) 

Rentes  suggested. — A  5  per  cent  ad  valorem  rate  or  a  specific  duty. 
Paragraph  411.  page  80,  line  3,  to  be  changed  to  read,  beginning  at 
word  "  furniture  " :  "  Furniture  made  with  frames  wholly  or  in  part 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  263 

of  wood,  rattan,  reed,  bamboo,  or  malacca.  and  covered  wholly  or  in 
part  with  rattan,  reed,  grass,  rattan  peel,  or  fiber  of  any  kind,  5  per 
cent  ad  valorem."  As  a  substitute,  based  on  specific  duty,  to  read  as 
follows :  "  Small  pieces.  35  cents ;  regulation  chairs  and  rockers,  75 
cents;  larger  pieces,  such  as  settees,  lounges,  recliners.  extension 
chairs,  etc.,  $1."  With  the  application  of  the  American  valuation 
plan  this  shows  an  increase  of  approximately  50  per  cent  over  the 
present  rate  of  duty. 

PARAGRAPH  413. — PORCH  AND  WINDOW  BLINDS. 
WITNESSES. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 
The  Aeroshade  Co. 
The  Hough  Shade  Corporation. 
The  Raymond  Porch  Shade  Co. 
The  Shred  wood  Curtain  Co. 
(Joint  brief;  no  appearance  at  hearings.) 

Remarks. — It  is  pointed  out  that  the  two  widely  different  kinds  of 
porch  and  window  shades  now  being  imported  into  the  United  States 
call  for  a  division  of  paragraph  175,  Schedule  D,  of  the  1913  tariff 
act,  in  which  the  distinction  between  wooden  and  molded  slats  on 
the  one  hand  and  bamboo,  reed,  and  similar  material  on  the  other 
shall  be  duly  recognized.  A  duty  of  45  per  cent  ad  valorem  is  re- 
quested on  the  former  and  of  60  per  cent  on  the  latter. 

Attention  is  directed  to  details  of  German  wages  and  to  the  advan- 
tages enjoyed  by  Japan,  not  only  in  this  respect  but  in  the  much 
lower  cost  of  a  material  (bamboo),  reproducing  itself  without  culti- 
vation every  few  years. 

PARAGRAPH  413. — BASKETS. 


REQUESTING  RECLASSIFICATION  : 

H.  Bayersdorfer  &  Co.,  florist  supplies,  Philadelphia.  Pa.     (Brief;  no  ap- 
pearance at  hearings.) 

Rates  suggested. — As  importers  of  baskets  to  the  extent  of  71  to 
100  large  cases  at  a  time,  the  firm  is  impressed  by  the  "  almost  100 
per  cent  examination  "  necessary  to  give  effect  to  the  provisions  of 
this  paragraph  as  drawn;  that  is  to  say,  distinguishing  between 
plain  and  stained.  It  is  suggested,  in  order  to  meet  this,  that  the 
paragraph  be  supplemented  by  the  words :  "  Baskets,  natural  or 
stained,  dyed,  painted,  polished,  grained,  or  creosoted,  30  per  cent 
ad  valorem."  This  would  do  away  with  the  lower  rate  of  25  per  cent 
on  natural  baskets  and  would  greatly  simplify  procedure. 

PARAGRAPH  414. — BROOM  HANDLES. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

Mr.  Samuel  Wasserman,  New  York  City. 

Hearings:  Pages  2171-2172. 

Costs  and  setting  prices. — The  cost  of  manufacturing  handles 
ranges  from  $5  to  $7  per  1,000,  according  to  factory  conditions. 


264  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

This  would  bring  the  cost  to  the  manufacturer  to  about  $30  per  1,000 
for  first  grade.  The  present  selling  price  is  about  $50  per  1,000. 
The  prevailing  prices  before  the  war  were  $18  to  $20,  during  the 
war  $80,  and  after  the  war  $50  per  1,000. 

Size  of  industry. — There  are  between  35  and  40  broom-handle 
factories  in  the  United  States,  and  about  1,000  establishments  en- 
gaged in  the  manufacture  of  brooms,  with  an  output  of  50,000,000 
brooms  annually.  One  concern  has  been  in  the  broom-manufactur- 
ing industry  nearly  40  years  and  employs,  when  on  full  time,  sev- 
eral hundred  men,  with  a  large  wage  list. 

Rates  suggested. — The  witness  objects  to  the  proposed  duty  of  25 
per  cent  ad  valorem.  Broom  handles  are  now  on  the  free  list  and 
should  remain  there.  Putting  and  keeping  broom  handles  on  the 
free  list  has  the  effect  of  stabilizing  prices,  will  enable  the  manufac- 
turer to  turn  out  his  product  at  a  lower  price,  and  the  consumer  will 
reap  the  benefit. 

Remarks. — The  hardwood  from  which  handles  are  made  costs 
about  $40  per  1.000  feet,  from  which  about  1,700  handles  can  be 
manufactured.  During  the  war  it  was  almost  impossible  to  obtain 
the  necessary  supply  of  broom  handles  at  any  price.  America's 
supply  of  beech,  birch,  and  maple,  the  hardwoods  used  in  the  manu- 
facture of  broom  handles,  is  very  limited,  and  domestic  forests  are 
now  being  denuded  of  these  very  valuable  hardwoods,  which  could 
be  much  better  utilized  in  the  building  of  homes.  The  importation 
of  hardwoods  necessary  to  make  broom  handles  should  therefore  be 
welcomed. 

PARAGRAPH  414. — BENT- WOOD  FURNITURE. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

Jacob  &  Josef  Kohn   (Inc.),  New  York  City.      (Brief;  no  appearance  at 
hearings. ) 

Costs  and  selling  prices. — The  firm  objects  to  the  proposed  increase 
of  the  duty  on  bent-wood  furniture  from  15  per  cent  on  its  foreign 
market  value  to  25  per  cent  of  its  American  market  price.  This,  it 
is  contended,  means  an  increase  from  15  per  cent  to  100  per  cent. 
An  imported  dining-room  chair,  for  instance,  sold  at  $10  to  the 
furniture  dealers  in  the  United  States,  would  be  dutiable  at  $2.50, 
practically  increasing  the  selling  price  by  that  amount. 

Foreign  prices  still  average  about  70  per  cent  above  pre-war  Amer- 
ican-made bent-wood  chairs  show  a  marked  advance  over  pre-war 
prices,  in  spite  of  voluntary  reductions  already  made.  The  addition 
of  100  pe'r  cent  in  duties  would  result  in  the  ruin  of  importers.  A 
further  reduction  has  been  made  in  prices  even  since  the  appearance 
of  the  firm  before  the  Ways  and  Means  Committee  in  the  late  spring 
of  1921. 

Even  if  the  present  foreign  value  basis  be  maintained,  this  pro- 
posed increase  in  the  rate  will  seriously  jeopardize  imports  and  expose 
the  public  to  the  operations  of  combinations  of  domestic  manufac- 
turers. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  265 

SCHEDULE    5. — SUGAR,    MOLASSES,    AND    MANUFACTURES    OF. 

PARAGRAPH  501. — SUGAR. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Francis  Kine  Carey,  Baltimore,  Md.,  representing  the  National  Sugar 
Manufacturing  Co.,  Sugar  City,  Colo. 

Mr.  W.  D.  Lippitt.  representing  the  Great  Western  Sugar  Co.,  Colorado, 

Mr.  C.  H.  Allen,  representing  1,200  farmers  organizing  a  sugar  factory. 

Mr.  R.  D.  Mead,  representing  the  Hawaiian  Sugar  Plantation  Association. 

Mr.  Raymond  Pitcairn,  representing  estate  of  John  Pitcairn. 

Mr.  G.  W.  McCormick,  representing  the  Menominee  River  Sugar  Co.,  Me- 
nominee.  Mich. 

Mr.  Frank  C.  Lowry. 

Mr.  Isauro  Gabaldon,  representing  Philippine  sugar  interests.  Philippines. 

Mr.  F.  R.  Hathaway,  representing  the  Michigan  Sugar  Co.,  Detroit,  Mich. 

Mr.  C.  C.  Hamlin,  representing  the  United  States  Sugar  Manufacturing 
Association,  Colorado  Springs,  Colo. 

Mr.  A.  E.  Carlton,  representing  the  Holly  Sugar  Corporation,  Colorado 
Springs,  Colo. 

Mr.  Joe  B.  Chaffee,  representing  the  American  Cane  Growers'  Association, 
Louisiana. 

Mr.  John  M.  Rogers,  representing  the  Louisiana  Cane  Growers'  Associa- 
tion, New  Orleans,  La. 

Mr.  Robert  E.  Milling,  representing  the  American  Cane  Growers'  Associa- 
tion. 

The  American  Farm  Bureau  Federation.     (Brief.) 

Mr.  Charles  DeB.  Claiborne,  New  Orleans,  La.,  representing  southern  and 
national  banking  interests. 

The  Chamber  of  Commerce  of  Honolulu.     (Brief.) 

The  North  Platte  Valley  Water  Users'  Association.     (Brief.) 

Mr.  R.  D.  Bowen.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.  Henry  A.  Rubino,  79  Wall  Street,  New  York  City,  representing  the 

Miranda  Sugar  Co. 

Mr.  E.  P.  Shattuck,  representing  the  Cuban  American  Sugar  Co. 
Mr.  F.  L.  Craycraft,  55  Broad   Street,  New  York  City,  representing  the 

Pressed  Steel  Co.  of  Cuba. 
Mr.  E.  A.  S.  Clarke     (Brief) 
Mr  William  W.  Matos.     (Brief.) 
Mr.   Samuel   M.   Vauclain,   representing  the  Baldwin   Locomotive  Works. 

(Brief.) 
E.  Atkins  &  Co.     (Brief.) 

Hearings :  Pages  2257-2264. 

Witness:  Mr.  Francis  King  Carey.  Baltimore,  Md.,  representing 
the  National  Sugar  Manufacturing  to.,  Sugar  City,  Colo. 

Size  of  industry. — The  company  manufactures  annually  about 
1,000.000  tons  of  granulated  sugar  in  95  beet-sugar  plants  in  17 
States.  The  replacement  value  of  the  factories  is  between  $175,000,000 
and  $300,000.000.  The  company  pays  out  annually  for  supplies,  to 
farmers  for  beets,  and  to  laborers,  about  $100.000.000.  The  acreage 
planted  to  beets  is  880,000.  Over  100,000  farmers,  employing  85,000 
laborers,  are  engaged  in  the  beet-sugar  industry.  The  factories 
employ  about  35,000  men. 

Hates  suggested. — Sufficient  to  equalize  the  cost  of  producing  im- 
ported raw  sugar,  plus  freight  and  refining  cost,  with  the  average 
cost  of  manufacture  of  standard  granulated  sugar  by  the  beet-sugar 
plants  of  the  United  States. 


266  DIGEST   OF   TARIFF    HEARINGS,    H.   R.   7456. 

Remarks. — The  beet-sugar  industry  is  distinctly  the  creature  of 
Government  propaganda,  especially  that  of  Mr.  James  Wilson,  Sec- 
retary of  Agriculture.  The  product  is  manufactured  in  the  inland 
parts  of  the  country,  where  it  is  safe  from  invasion.  It  is  a  stabilizer 
of  price.  In  1920,  when  Cuban  sugar  rose  to  the  preposterous  price 
of  23  cents  per  pound,  beet  sugar  sold  at  an  average  of  less  than  12 
cents  per  pound.  The  rise  in  the  price  of  Cuban  sugar  did  not  and 
could  not  take  place  until  the  supply  of  beet  sugar  was  exhausted. 
The  beet-sugar  industry  was  the  first  great  American  industry  volun- 
tarily to  submit  its  operation  to  the  control  of  the  food  administra- 
tion, for  which  patriotic  action  it  received  the  commendation  of  Mr. 
Hoover.  The  witness  denied  injury  to  children  from  work  in  the 
beet  fields. 

Hearings :  Pages  2264-2268. 

Witness:  Mr.  W.  D.  Lippitt,  general  manager,  representing  the 
Great  Western  Sugar  Co. 

Size  of  indust)~y. — Sugar  beets  are  grown  in  17  States.  The  sugar- 
beet  territory  may  be  roughly  divided  into  three  major  groups:  The 
Pacific  coast  area  (18  factories),  the  Rocky  Mountain  area  (55 
factories),  and  the  eastern  area  (33  factories).  In  1921,  800,000 
acres  of  sugar  beets  were  grown,  yielding  7,500,000  tons  of  beets — 
about  9^  tons  to  the  acre.  About  100,000-  farmers,  85,000  field 
workers,  and  35,000  mill  operatives  were  engaged  in  growing  and 
handling  the  crop.  The  crops  are  grown  almost  entirely  by  inde- 
pendent growers  who,  under  contract  with  the  factories,  received 
$50,000,000  for  their  beets.  Approximately  the  same  amount  was 
paid  for  operating,  supplies,  labor,  and  railroad  freights.  From 
the  fact  that  normally  about  60  per  cent  of  the  cost  covers  payments 
to  farmers  for  beets,  it  will  be  apparent  that  the  industry  is^  essen- 
tially agricultural. 

Remarks. — Beet-sugar  factories  employ  a  staff  of  trained  agricul- 
turists who  act  in  an  advisory  capacity  to  farmers.  They  also  assist 
in  combating  pests.  The  factories,  through  their  field  department, 
attend  to  the  distribution  each  year  of  from  50,000  to  75,000  field 
workers.  Field  labor  shortage  is  practically  unknown,  as  these  labor- 
ers can  work  on  other  crops  when  not  needed  for  the  beets.  A  crop 
requiring  cultivation  is  desirable  for  the  soil.  Corn,  cotton,  and 
potatoes  are  such  crops.  Beets  serve  the  same  purpose  and  flourish 
in  regions  where  the  other  crops  are  not  available.  As  the  centers 
of  population  are  in  the  East  and  the  agricultural  regions  in  the 
West,  it  is  of  importance  that  food  should  be  transported  in  concen- 
trated form.  This  end  is  attained  by  beet  sugar.  An  acre  of  sugar 
beets  produces  2,500  pounds  of  pure  white  sugar.  The  beet  tops 
and  the  residual  pulp  and  molasses  are  valuable  for  live  stock.  These 
mere  by-products  from  an  acre  of  sugar  beets  will  produce  about 
300  pounds  of  meat  in  addition  to  the  ton  and  a  quarter  of  sugar. 
Hence,  in  addition  to  the  1,000,000  tons  of  sugar,  the  beet  sugar  in- 
dustry should  be  credited  with  an  annual  contribution  to  the  national 
food  supply  of  240,000,000  pounds  of  meat  products. 

Hearings :  Pages  2269-2274. 

Witness:  Mr.  C.  H.  Allen,  Defiance,  Ohio,  representing  the  sugar 
industry  on  its  agricultural  side. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  267 

Remarks. — The  witness  showed  that  production  of  sugar  was 
an  agricultural  rather  than  a  manufacturing  industry.  The  big 
question  is  how  congressional  action  will  affect' the  farmer,  the  soil, 
and  the  economic  interests  of  the  country  as  a  whole.  It  may 
be  granted  that  sugar  can  be  raised  more  cheaply  in  the  Tropics. 
The  question  is,  therefore,  why  grow  sugar  when  it  can  be  bought 
cheaper  ?  The  answer  is  found  in  the  fact  that  sugar  production 
tends  to  national  independence  from  other  countries,  that  it  in- 
creases the  growth  of  other  crops,  and  that  it  is  in  the  interest  of 
conservation  of  the  soil.  The  era  of  cheap  fertile  land  has  passed ; 
the  area  of  farming  land  is  not  increasing  in  proportion  to  increase 
in  population.  This  results  in  an  increase  in  the  value  of  land  and 
a  tendency  to  an  increase  in  the  price  of  food  products.  It  has  been 
proved  that  sugar-beet  cultivation  in  proper  rotation  increases  the 
growth  of  other  crops.  It  is  therefore  an  industry  worthy  of  en- 
couragement. Many  crops  deplete  the  soil,  so  that  in  many  regions 
of  the  country  lands  formerly  fertile  need  much  replacement  of 
mineral  constituents  to  render  them  again  fertile.  There  has  been  in 
recent  years  a  vigorous  movement  for  conservation.  Of  all  the 
materials  mentioned  as  demanding  conservation  none  is  so  important 
as  the  mineral  constituents  of  the  soil  essential  to  fertility.  Sugar 
is  elaborated  from  rain  and  air  and  sunshine — inexhaustible  mate- 
rials. Would  it  not  be  wise  to  raise  domestic  sugar,  reaping  fer- 
tility at  home,  rather  than  to  ship  out  wheat,  containing  from  30  to 
60  cents  worth  of  raw  material,  and  buy  with  it  sugar  which  is  only 
sunshine  and  rain  and  take  not  an  ounce  of  fertilizing  matter  from 
the  soil  ? 

Hearings :  Pages  2306-2307. 

Witness :  Mr.  Royal  D.  Mead.  Honolulu,  Hawaii,  presenting  brief 
in  behalf  of  the  Hawaiian  Sugar  Planters'  Association. 

Rates  suggested. — The  existing  rate  (1.60  cents  from  96°  sugar  from 
Cuba)  ;  as  a  permanent  policy,  the  maintenance  of  such  tariff  on  raw 
sugar  as  will  equalize  the  marginal  cost  of  production  between  the 
domestic  industry  as  a  whole  and  its  principal  foreign  competitor, 
Cuba,  such  rate  to  be  computed  from  cost  schedules  by  the  United 
States  Tariff  Commission. 

Remarks. — Overproduction  in  Cuba  is  in  violation  of  the  spirit  of 
the  reciprocity  agreement,  which  was  in  intent  to  give  Cuba,  in  the 
matter  of  sugar,  only  a  substantial  preference  over  other  foreign 
nations  in  order  that  she  might  supply  all  import  requirements  of 
this  country.  In  so  far  as  further  production  necessitates  encroach- 
ment upon  the  domestic  market  and  displacement  of  domestic  sugars 
it  is  not  warranted  by  any  moral  obligation  toward  Cuba.  Cuba  has 
officially  claimed,  to  be  the  cheapest  sugar  producing  country  in  the 
world.  Why.  therefore,  may  she  not  seek  the  world  markets  for  her 
surplus  production,  instead  of  dumping  it  on  the  American  market 
at  a  loss,  forcing  a  consequent  loss  to  domestic  sugar  producers? 

Hearings :  Pages  2274-2276. 

Witness :  Mr.  Raymond  Pitcairn,  Philadelphia,  Pa.,  representing 
the  Owosso  Sugar  Co.,  Owosso,  Mich. 

Size  of  industry. — Sugar  plants  of  Michigan  alone  supply  250,- 
000.000  pounds  of  sugar  per  annum  and  pay  to  Michigan  farmers 
$2,000,000  for  beets. 


268  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

Rates  suggested. — Two  cents  per  pound  full  duty ;  1.60  cents  Cuban 
duty. 

Remarks. — Many  beet-sugar  plants  are  practically  in  the  hands  of 
their  bankers  and  creditors;  others  are  weakened  and  impoverished 
by  heavy  burdens  of  indebtedness  piled  up  during  the  last  two  years 
following  the  war.  Plants  must  now  decide  whether  they  will  oper- 
ate' or  shut  down  during  the  coming  year.  Unless  adequate  protec- 
tion is  assured  they  will  shut  down,  the  factory  organizations  will  be 
disbanded,  the  plants  will  suffer  deterioration,  and  farms  will  lose 
their  beet  crops.  Anything  short  of  the  present  emergency  tariff  as  a 
fixed  and  continuing  measure  will  leave  the  business  open  to  con- 
stantly recurring  periods  of  jeopardy.  The  beet-sugar  industry  in 
Michigan  and  the  Middle  West  was  established  through  the  efforts 
of  the  United  States  Government.  In  response  to  earnest  solicitation 
on  behalf  of  the  Government  and  because  of  promised  aid  in  the  form 
of  a  tariff,  money  was  subscribed,  the  plants  were  built,  and  extensive 
sugar-beet  farming  in  the  Middle  West  cultivated.  Will  the  Gov- 
ernment desert  the  industry  which  it  has  been  instrumental  in  build- 
ing up  ? 

Hearings :  Pages  2276-2294. 

Witness:  Mr.  George  W.  McCormick,  Menominee,  Mich.,  repre- 
senting the  Menominee  River  Sugar  Co. 

Costs  and  selling  prices. — Granulated  beet  sugar  is  quoted  at  $4.80 
per  100  pounds  to-day.  If  Cuban  sugar  is  dumped  on  the  domestic 
market  as  threatened,  sugar  wTill  be  sold  for  $3.80  per  100  pounds. 
The  average  cost  of  producing  beet  sugar,  as  estimated  by  16  of  the 
largest  factories,  is  $5.09  per  100  pounds. 

Size  of  industry. — About  43  companies  are  operating.  Their  con- 
dition is  such  that  if  they  were  called  upon  to  settle  up  they  could 
not  do  it.  The  number  of  factories  has  increased  from  6  in  1897 
to  106  in  1921.  These  are  located  in  agricultural  areas  of  17  States, 
and  are  attracting  laborers  and  farm  hands.  To-day,  America  has 
about  $190,000,000  invested  in  the  beet-sugar  industry,  approximately 
85,000  laborers  in  the  beet  fields  and  35,000  engaged  in  the  operation 
of  the  factories. 

Comparability. — The  deplorable  condition  of  the  beet-sugar  in- 
dustry has  been  brought  about  by  the  importation  of  sugar  from 
foreign  countries.  Through  the  preferential  treatment  given  to 
Cuba  she  has  practically  a  monopoly  of  the  American  market.  In 
September,  1919,  the  price  of  Cuban  raw  sugar  f.  o.  b.  New  York 
was  5.88  cents  per  pound.  In  April  following,  that  is  to  say,  when 
domestic  sugar  was  practically  exhausted  and  Cuba  saw  no  other 
competition,  she  raised  the  price  until  it  reached  26£  cents  per 
pound,  and  retailers  were  forced  to  pay  30  to  35  cents.  As  the 
Cuban  and  other  foreign  sugars  were  not  governed  by  the  rules  and 
restrictions  laid  down  for  the  American  industry  by  the  Equaliza- 
tion Board,  they  sold  to  American  refiners  at  top  high  prices.  In 
November,  1919,  American  standard  granulated  sugar  was  quoted, 
delivered  in  New  York  at  11^  cents  per  pound,  when  Brazilian  raw 
sugars  were  sold  in  the  same  market  at  14  and  16  cents  per  pound. 
In  1920,  American  beet  sugar  sold  from  $2  to  $4  per  100  pounds  be- 
low the  actual  cost  of  production,  this  being  due  to  a  demoralized 
market  glutted  with  sugar  from  all  parts  of  the  world. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  269 

Remarks— The  sugar-beet  industry  of  the  United  States  finds 
itself  to-day  in  the  most  critical  condition  of  its  history ;  it  stands  on 
the  very  verge  of  disaster.  There  was  a  staggering  loss  on  the  crop 
of  sugar  produced  in  17  States  in  1920-21  when  the  highest  scale  of 
wages  was  paid.  Cuba  is  holding  about  1,250,000  tons  of  sugar  over 
from  last  year's  crop,  and  it  is  reported  that  she  threatens  to  throw 
this  on  the  American  market  at  1  cent  per  pound.  The  quoted  price 
on  raw  sugar,  freight  paid,  delivered  at  Xew  York,  sold  in  the  months 
of  January  and  March,  was  2  cents  per  pound.  More  than  this,  veiled 
threats  are  being  made  that  unless  propagandists  get  what  they  are 
asking  for  a  revolution  will  follow  and  the  United  States  will  be 
obliged  to  intervene,  with  annexation  as  the  inevitable  result. 

Hearings :  Pages  2288-2289. 

Witness:  Mr.  Frank  C.  Lowry,  representing  the  United  States 
Equalization  Board. 

In  the  course  of  Mr.  George  M.  McCormick's  testimony,  Mr.  Lowry 
obtained  permission  to  make  a  statement,  summarized  as  follows  : 

The  equalization  board  went  out  of  business  January  1,  1920.  The 
crops  of  Cuban  sugar  did  not  come  in  until  after  that  time,  when 
there  was  a  shortage  of  sugar  in  the  East.  The  beet-sugar  people 
were  called  upon  to  rurnish  100,000  tons  to  relieve  the  situation  when 
sugar  was  selling  at  9  cents  per  pound — a  price  fixed  by  the  Govern- 
ment. The  beet  sugar  brought  into  the  eastern  territory  and  sold  at 
10^  cents  was  based  on  the  new  crop.  The  cane-sugar  price  of  9 
cents  wras  based  on  the  cost  of  production,  and  the  price  was  ar- 
ranged for  the  whole  crop.  After  January,  when  the  equalization 
board  no  longer  controlled  prices,  they  soared  to  the  top.  It  was 
after  the  price  of  Cuban  sugar  went  up  that  the  Porto  Kican  and 
Hawaiian  products  went  up  the  same  way,  from  $11.33  to  $22  per  ton. 

Hearings:  Page  2251. 

Witness :  Hon.  Isauro  Gabaldon,  Eesident  Commissioner  from  and 
representing  the  Philippines. 

Comparability. — Philippine  competition  in  the  American  market 
with  Cuban  sugar  is  made  impossible  because  difference  in  freight 
rates  and  other  items  highly  favor  Cuban  sugar. 

Rates  suggested. — The  present  emergency  tariff  act  on  sugar 
should  be  made  permanent  in  order  to  protect  the  industry  in  the 
Philippines.  If  the  Cuban  interests  succeed  in  reducing  the  rates, 
the  Philippine  product  will  be  entirely  driven  from  the  American 
market.  As  the  Philippines  enjoy  the  American  market  on  terms 
of  equality  with  domestic  producers,  they  are  naturally  concerned 
over  legislation  threatening  their  disposition  of  the  sugar  which 
they  have  produced  at  heavy  and  abnormal  expense.  They  are  un- 
der the  further  disadvantage,  applying  to  all  duty-free  sugars,  aris- 
ing from  the  drawback  regulations. 

Hearings :  Pages  2294-2297. 

Witness:  Mr.  F.  R.  Hathaway,  secretary  and  treasurer,  represent- 
ing the  Michigan  Sugar  Co.,  Detroit,  Mich. 

Size  of  industry. — Duty-free  sugar  of  the  United  States  (conti- 
nental and  insular)  amounts  to  2,000,000  tons;  Cuba  produces  about 
4,000.000  tons.  The  combined  output  is  6,000,000  tons,  of  which 
amount  only  4,000,000  tons  can  be  consumed  in  the  United  States. 


270  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456. 

Rates  suggested. — The  company  favors  the  rates  proposed  in  H.  R. 
7456. 

A  high  protective  tariff  can  not  work  to  the  disadvantage  of  Cuba 
except  in  one  particular — to  keep  her  from  monopolizing  the  domes- 
tic market.  Cuba's  protection  against  Dominican  and  South  Ameri- 
can sugar  is  greater  under  the  proposed  bill  than  it  can  be  under  a 
1-cent  tariff.  All  previous  tariffs  since  1890,  except  that  of  1894.  have 
been  in  a  measure  a  protection  to  the  domestic  industry. 

The  minimum  recorded  price  of  American  beets  (1916-17)  is  $6  per. 
ton,  corresponding  to  a  rate  of  $2.50  per  100  pounds  of  sugar,  to 
which  must  be  added  the  transportation  cost,  the  acreage,  and  the 
cost  of  manufacturing.  Cuban  sugar  can  be  laid  down  for  $2  per 
100  pounds  in  the  United  States — a  fact  in  itself  sufficient  to  demon- 
strate the  necessity  for  a  protective  tariff. 

Hearings:  Pages  2297-2302. 

Witness :  Mr.  C.  C.  Hamlin,  representing  the  United  States  Sugar 
Manufacturers'  Association. 

Comparability. — The  industry  is  confronted  with  a  tremendous 
overproduction  of  sugar  in  Cuba,  which  supplied,  and  must  con- 
tinue to  supply,  half  of  the  American  sugar  demand.  Cuba  is  pro- 
ducing in  quantity  to  supply  all  United  States  requirements.  There 
must  be  a  contraction  in  production,  so  that  supply  and  demand  will 
be  to  some  degree  balanced ;  until  that  condition  arrives  there  will  be 
no  stability  in  the  sugar  industry.  If  Cuba  had  marketed  her  sugar 
holdings  in  1920  she  would  not  be  in  such  a  deplorable  condition 
to-day,  when  she  threatens  to  eliminate  the  American  industry. 

Rates  suggested. — The  witness  does  not  think  that  the  propaganda 
for  a  1-cent  duty  on  Cuban  sugar  is  fair.  If  an  adequate  tariff  is 
enacted.  Cuba  will  manufacture  at  a  reasonable  cost  that  will  help 
settle  this  market  and  insure  sugar  to  the  consumer  at  a  reasonable 
price.  Increased  United  States  consumption  will  take  care  of  the 
increased  supply.  The  sugar-beet  industry  is  not  destined  to  increase. 

Remarks. — Since  the  development  of  the  beet-sugar  industry  the 
United  States  has  enjoyed  the  cheapest  sugar  in  the  world.  The  sup- 
ply produced  here  has  been  the  greatest  stabilizer  of  prices  of  sugar 
in  the  home  market,  and  the  greatest  calamity  that  could  befall  the 
American  consumer  would  be  to  have  the  industry  destroyed.  In  a 
letter  submitted,  Mr.  Henry  A.  Rubino  states  that  the  Great  Western 
Sugar  Co.  in  1919-20  produced  30  per  cent  of  the  entire  amount  of 
sugar  of  the  United  States.  This  company  operates  some  16  factories, 
located  in  Colorado.  Montana.  Wyoming,  and  Nebraska.  Its  growth 
and  success  were  entirely  due  to  the  Payne- Aldrich  and  Underwood 
tariff  acts. 

Hearings :  Pages  2303-2306. 

Witness:  Mr.  A.  E.  C'arlton.  representing  the  Holly  Sugar  Cor- 
poration. Colorado  Springs,  Colo. 

Size  of  industry. — The  witness  states  that  his  company  stands 
sixth  in  American  production,  producing  1.000,000  bags  of  beet 
sugar  annually. 

Hates  suggested. — If  the  domestic  industry  is  to  be  continued,  not 
a  temporary  but  a  permanent  tariff  must  be  provided,  capable  of 
covering  the  readjustment  period  in  Cuba.  A  duty  of  2.4  cents  per 
pound  is  required;  this  would  result  in  a  cost  of  2  cents  raw  and  a 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.    7456.  271 

refining  charge  of  1  cent  in  a  price  of  5.45  cents  for  refined  sugar  in 
New  York.  A  freight  rate  of  50  cents  per  bag  should  be  deducted 
from  this  for  all  companies  west  of  the  Missouri.  Even  with  a  duty 
of  $2.40  on  Cuba,  the  net  yield  to  domestic  beet  factories  would  be 
$4.90.  At  anything  under  this,  the  price  to  the  farmer  would  be 
practically  nothing. 

Remarks. — The  beet-sugar  farmers  as  well  as  the  factories  have  had 
tremendous  losses  during  1920-21.  The  farmer  is  the  mo^t  impor- 
tant element  in  the  industry  and  he  can  be  protected  by  the  tariff. 
The  beet-sugar  factories  would  have  been  unable  to  function  and 
treat  the  beets  that  they  contracted  for  had  it  not  been  for  the  Wai- 
Finance  Corporation. 

Hearings :  Pages  2307-2315. 

Witness:  Mr.  Joe  B.  Chaffe,  representing  the  American  Cane 
Growers'  Association,  with  a  membership  of  about  450. 

Cost  mid  selling  prices. — Cost  of  production  in  one  mill  was  $5.33 
per  ton  of  sugar ;  the  harvesting,  etc.,  $1 ;  overhead  expenses,  $1 ; 
making  a  total  cost  of  production  of  $7.33  per  acre:  (sic)  against 
this  an  average  of  $3.85  per  ton  will  be  received  from  the  factory, 
showing  a  loss  of  $3.48  per  ton.  This  was  the  highest  of  one  fac- 
tory. Losses  in  other  factories  were,  in  one  case  a  loss  of  $1.99  per 
ton,  in  another  65  cents  per  ton,  and  in  another  82  cents  per  ton. 
Tables  on  costs  for  1920  are  printed  in  full  on  pages  2314-2315. 
The  cost  of  labor  is  $1.25  per  day  without  board. 

Size  of  irfiflustry. — The  witness  represented  the  smallest  unit  but 
the  oldest  sugar  producers  in  America,  having  been  producers  over 
a  hundred  years  in  Louisiana.  They  have  600,000  acres  under  culti- 
vation, which,  at  a  cost  of  $125  per  acre,  would  amount  to  $75,000,- 
000.  They  have  189  sugar  factories,  appraised  in  1914  at  $33,000,000. 
Their  railroad  equipment  is  estimated  at  $3,500,000,  and  they  own 
48,000  mules,  valued  at  about  $7,200,000.  These  and  other  invest- 
ments make  a  total  of  $120,000,000  invested  in  the  industry.  They 
employ  about  350,000  laborers  and  grow  about  45  per  cent  of  all 
cane  crushed,  55  per  cent  of  which  is  grown  by  independent  farmers 
on  their  own  lands. 

Hearings:  Pages  2315-2338. 

Witness:  Mr.  John  M.  Rogers,  representing  the  Louisiana  Cane 
Growers'  Association. 

Size  of  industry. — There  are  241  establishments  operating  Louisi- 
ana cane  and  American  beet  sugar  and  18  refiners  engaged  in  refining 
exclusively. 

Comparability. — In  1920  the  invested  capital  in  the  Louisiana  cane- 
sugar  industry  was  $125,000,000;  in  beet  sugar,  $600,000,000.  The 
Hawaiian  investment  was  about  $175,000,000,  and  the  Porto  Rican 
about  $150,000,000.  The  total  investment  of  capital  in  the  produc- 
tion of  sugar  in  America  and  its  insular  possessions  is  at  least 
$1,050.000.000.  The  Cubans  started  with  an  investment  of  $600,- 
000.000.  which  has  grown  in  a  short  time  to  a  billion  dollars ;  if  their 
investment  continues  at  this  rate,  the  Cuban  sugar  production  will 
exceed  that  of  the  rest  of  the  world. 

Rates  suggested. — Analyses  of  sugar  costs,  from  various  sources, 
show  that  to  equalize  costs  the  following  tariff  rates  must  operate  as 
against  Cuba. 


272  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    1456. 

War  Industries  Board :  Louisiana*  cost,  3.98  cents  per  pound; 
Cuban,  1.45  cents ;  the  difference  to  equalize  cost  would  be  a  tariff  of 
2.53  cents.  Department  of  Commerce,  Miscellaneous  Series  53 : 
Louisiana  factory  cost,  3.973  cents:  Cuban  cost,  1.445  cents;  tariff 
required  would  be  2.528  cents.  Tariff  Commission,  by  Doctor  Wright : 
Louisiana  cost,  4.480  cents;  Cuban.  1.70  cents— a  difference  of  2.78 
cents :  deducting  0.379  cents,  to  bring  the  Louisiana  line  of  sugar  to 
a  raw  basis,  makes  a  difference  of  2.401  cents.  These  authorities  show 
that  Louisiana  needs  a  tariff  of  2^  cents,  as  against  Cuba,  to  equalize 
costs.  A  tariff  equalizing  costs  of  production  in  America  and  Cuba, 
means  a  continuation  of  the  sugar  industry  in  the  United  States  and 
its  insular  possessions.  With  a  general  tariff  of  2.50  cents,  Cuba 
would  have  an  advantage,  under  the  20  per  cent  differential,  of  50 
cents  per  hundred  pounds.  With  a  tariff  of  3|  cents,  Cuba  would  be 
2£,  an  advantage  of  62£  cents  (sic).  A  low  tariff  on  Cuban  sugar 
would  completely  destroy  the  continental  producer.  A  tariff  equaliz- 
ing the  cost  of  American  production  would  not  only  be  a  protection 
to  the  American  sugar  industry  but  a  direct  protection  to  the  con- 
sumer as  well. 

Remarks. — There  are  about  40,000  Chinese  in  Cuba,  and  Chinese 
are  coming  into  Cuba  at  the  rate  of  8.000  annually  practically  under 
contract  to  work  in  the  sugar-cane  industry.  Tables  on  costs,  pro- 
duction, etc,,  were  submitted  as  exhibits. 

In  a  later  brief  (pp.  2402-2408)  the  witness  objected  to  the  polari- 
scopic  test  for  molasses  and  sirups  as  not  being  a  true-value  test, 
taking  no  account  of  their  food,  feed,  and  manufacturing  value.  The 
brief  enters  at  length  into  the  adaptability  of  molasses  as  a  basis  for 
a  balanced  feed  ration  on  account  of  its  high  carbohydrate  content, 
its  high  digestibility,  and.  ordinarily,  its  cheapness.'  Reference  is 
made  to  the  report  of  a  committee  appointed  in  1918  by  Mr.  Herbert 
Hoover,  then  food  administrator,  in  which  a  true  analysis  of  the 
various  grades  of  sirups  and  molasses  is  given. 

Hearings :  Pages  2339-2343. 

Witness :  Mr.  Kobert  E.  Milling,  representing  the  American  Cane 
Growers'  Association,  New  Orleans,  La. 

Rates  suggested. — A  tariff  of  1  cent  per  pound  is  not  sufficient;  a 
rate  of  2£  cents  is  essential  if  the  American  industry  is  to  survive. 
Cuba  can  raise  sugar  at  1^  cents  per  pound  because  of  her  labor  con- 
ditions ;  this  is  not  possible  in  America. 

Remarks. — The  question  of  tariff  rates  lies  between  the  Cuban 
producers  and  the  American  refiners  on  the  one  hand  and  the  Ameri- 
can producer  on  the  other,  the  competition  being  unequal.  From 
1898  to  1913  the  American  sugar  industry  increased  by  1.650  per 
cent.  Since  1913  the  increase  has  been  only  4  or  5  per  cent. 

Hearings :  Pages  2348-2354. 

Witness :  The  American  Farm  Bureau  Federation. 

(Brief;  no  appearance  at  hearings.) 

Siz,e  of  industry. — The  United  States  and  insular  possessions  pro- 
duce about  2.000,000  short  tons  of  sugar  annually,  slightly  less  than 
one-half  of  the  annual  domestic  consumption.  Most  of  the  remain- 
der is  imported  from  Cuba. 

Comparability. — Under  the  terms  of  the  reciprocity  treaty  of  1903, 
Cuba  enjoys  a  reduction  of  20  per  cent  from  the  regular  duty  paid  by, 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  273 

other  countries  shipping  to  the  United  States.  Large  stocks  of  the 
1920  sugar  crop  are  still  in  the  Cuban  warehouses,  having  been  held 
because  of  the  low  price  in  1920-21  following  heavy  shipments  to 
America  by  other  countries.  This  surplus  sugar  now  threatens  to 
swamp  the  United  States  market  and  destroy  American  producers. 
Factors  to  be  considered  by  Cuba  in  considering  new  markets  for 
her  sugar  are  the  tariff  duties  assessed  by  importing  nations,  and 
ocean  freight  rates,  both  of  which  are  higher  than  in  the  United 
States;  even  with  the  American  duty  trebled  it  would  still  be  to 
Cuba's  advantage  to  ship  to  the  United  States. 

Rates  suggested. — The  federation  favors  the  proposed  rate  of  1.6 
cents  per  pound.  The  consumer  in  Washington  pays  6  cents  per 
pound  for  sugar,  of  which  1.6  cents  is  tariff  duty,  constituting  a  con- 
sumption tax  of  26.6  per  cent.  This  is  paid  willingly  in  most  cases 
to  protect  the  American  producer,  but  a  higher  rate  would  be  ob- 
jected to.  Both  the  American  producer  and  the  American  consumer 
must  be  protected.  A  better  policy  would  be  to  adopt  President 
Harding's  proposed  elastic  tariff,  with  the  Fordney  bill  provision  of 
1.16  cents  per  pound  on  sugar  testing  not  above  75°  (amounting  to 
1.6  cents  per  pound  on  Cuban  sugar  of  96°  polariscopic  test)  as  a 
minimum  duty.  This  would  give  the  American  producer  a  protec- 
tion averaging  six-tenths  of  1  cent  per  pound  over  and  above  the 
protection  received  prior  to  the  adoption  of  the  emergency  tariff  in 
May.  1921.  With  the  Fordney  rate  as  a  minimum  and  with  a  pos- 
sible maximum  authorized  by  Congress  as  an  item  of  an  elastic  tariff, 
the  President  might,  by  proclamation,  fix  the  higher  rate  if  at  any 
time  it  should  become  evident  that  American  producers  were  losing 
ground  to  the  detriment  of  the  country. 

Remarks. — With  the  exception  of  one  big  crop  in  1920-21,  the 
sugar-beet  crop  in  the  United  States  has  not  been  materially  in- 
creased since  1913-14.  It  is  generally  conceded  that  cane-sugar  pro- 
duction in  Louisiana  has  practically  reached  its  maximum.  Tables 
giving  statistics  on  production,  imports,  and  exports  of  sugar  from 
1911-12  to  1920-21  will  be  found  on  pages  2352-2354. 

A  later  brief  (pp.  2383-2397)  states  that  the  polariscopic  test  ig 
not  a  true  index  of  the  sugar  content  of  molasses :  its  use  has  resulted 
in  most  of  the  imported  molasses  being  in  the  lowest  of  the  three 
grades.  Discussing  the  operation  of  H.  R.  7456,  the  use  of  the 
Clerget  method  of  sugar  determination  is  laid  down  as  essential. 
Considerable  space  is  devoted  to  the  numerous  uses  of  molasses  from 
the  table  down  to  stock  feed  and  distillation. 

Hearings:  Pages  2343-2346. 

Witness:  Mr.  Charles  De  B.  Claiborne,  representing  southern  and 
national  banking  interests. 

Remarks. — In  the  course  of  a  general  statement  dealing  with 
southern  conditions  and  sentiment  the  witness,  a  New  Orleans 
banker,  reviewed  the  sugar  situation  with  particular  reference  to 
Cuban  prices.  He  wished  to  have  it  clearly  understood  that  a  large 
majority  (80  or  90  per  cent)  of  southern  bankers  are  in  favor  of 
high  protection,  for  the  coming  year  at  any  rate.  A  duty  of  1.6 
cents  per  pound  on  sugar  is  not  enough  to  encourage  bankers  to 
make  loans  to  the  industry.  If  sugar  is  to  live  in  Louisiana,  the 


274  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

duty  must  be  such  as  will  maintain  that  commodity  at  4  cents  per 
pound. 

The  idea  that  the  American  people  are  ordained  to  save  the  entire 
world  is  a  type  of  national  egotism.  It  is  now  necessary  to  save 
southern  and  western  industries  if  financial  institutions  are  to  re- 
main solvent. 

Witness:  The  Chamber  of  Commerce  of  Honolulu.  (Brief;  no 
appearance  at  hearings.) 

Rates  suggested. — A  powerful  effort  is  being  made  to  induce  the 
United  States  Government  to  grant  a  reduction  on  the  present  tariff 
duty  on  Cuban  sugars,  in  order  to  relieve  the  present  financial  dis- 
tress of  Cuba,  without  regard  to  the  effect  that  such  reduction  would 
have  upon  the  American  industry.  In  spite  of  the  present  tariff 
protection,  the  producers  of  sugar  in  the  United  States  are  strug- 
gling to  carry  on  their  industry,  with  production  cost  in  excess  of 
the  market  value,  due  to  overproduction.  Domestic  producers  would 
undoubtedly  be  ruined  if  the  desired  reduction  of  the  present  tariff 
rate  on  Cuban  sugars  should  be  granted.  The  chamber  of  commerce 
petitions  the  United  States  to  maintain  the  present  tariff  on  foreign- 
produced  sugar  as  a  necessary  protection  to  the  home  consumer,  re- 
garding a  nucleus  of  home  production  as  an  essential  protection  of 
the  American  consumer  against  control  of  the  foreign  sugar  trade. 

Witness:  The  North  Platte  Water  Users'  Association.  (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — The  association  indorses  the  2  cents  per  pound 
duty  on  sugar  as  proposed.  THe  beet-sugar  industry  of  Nebraska 
and  17  other  beet-sugar  producing  States  is  facing  a  desperate  emer- 
gency. It  would  be  detrimental  to  that  interest  that  any  reduction- 
in  the  tariff  be  made,  or  that  any  increase  beyond  the  present  20  per 
cent  preferential  should  be  granted  to  Cuba. 

Witness:  Mr.  R.  D.  Bowen.  (Brief;  no  appearance  at  hearings.) 
Rates  suggested. — The  witness  is  convinced  that  the  tariff  duty  on 
sugar  should  not  be  less  than  2£  cents  per  pound.  Men,  women,  and 
children  work  in  the  Louisiana  cane  fields  from,  be  fore  daylight  to 
long  after  nightfall,  and  sometimes  into  the  night.  They  are  doing 
this  to  furnish  the  American  people  with  sugar,  and  he  does  not  be- 
lieve that  the  people  of  America  would  oppose  the  duty  of  2i  cents 
per  pound  if  they  knew  what  the  cane  and  beet  producers  of  this 
country  are  up  against.  A  tax  on  sugar  is  the  most  evenly  divided 
tax  that  can  possibly  be  levied  on  American  industries. 

Hearings :  Pages  2184-2208. 

Witness :  Mr.  Henry  A.  Rubino,  representing  the  Miranda  Sugar 
Co.,  Oriente,  Cuba. 

Size  of  industry. — The  witness,  in  his  testimony  and  in  a  submitted 
brief,  showTed  that  over  $1,000,000,000  of  American  capital  was  in- 
vested in  the  sugar  industry  in  Cuba,  while  the  total  amount  of 
American  capital  invested  in  the  domestic  sugar  industry — the  beet- 
sugar  industry  in  the  United  States  and  the  cane-sugar  industry  in 
Porto  Rico,  in  the  Hawaiian  Islands,  and  in  the  Philippine  Islands — 
was  only  $545,258,476.  About  2.100,000  tons  of  sugar  is  produced 
in  the  United  States  and  insular  possessions  annually.  Of  the  4,- 
500,000  tons  of  sugar  consumed  in  the  United  States.  Cuba  furnished 


DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456.  275 

about  2,500,000  tons.  Cuba  is  conceded  to  be  the  largest  sugar-pro- 
ducing country  in  the  world. 

Kates  suggested. — The  company  opposes  a  tariff  increase  on  sugar. 
The  Fordney  emergency  tariff  increased  the  duty  on  raw  sugar  from 
1  cent  per  pound  to  2  cents  per  pound,  and,  with  the  differential  of 
20  per  cent  in  favor  of  Cuban  sugars,  brought  the  duty  to  1.16  cents 
a  pound,  or  six-tenths  of  a  cent  a  pound  higher  than  before. 

Remarks. — The  argument  of  the  witness  was  to  the  effect  that 
American  investments  in  Cuba  deserved  equal  consideration  with 
investments  in  the  United  States,  that  the  duty  of  $1.60  per  100 
pounds  levied  upon  Cuban  sugar  under  the  emergency  tariff  had  been 
borne  by  the  Cuban  producer  without  benefit  to  the  American  con- 
sumer, and  if  continued  under  the  Fordney  bill  would  continue  to 
be  borne  by  the  Cuban  producer ;  and  that  this  burden  would  "  ruin^ 
our  industry  in  Cuba  and  utterly  destroy  our  American  investment 
there."  Details  of  American  interests  in  Cuba  are  given  in  tables 
on  pages  2198-2201. 

Hearings :  Pages  2210-2215. 

Witness :  Mr.  Edwin  P.  Shattuck,  representing  the  Cuban- Ameri- 
can Sugar  Co.,  the  Francisco  Sugar  Co.,  the  Tuinucu  Sugar  Co.,  and 
the  Tacajo  Sugar  Co. 

Size  o\f  industry. — American  producers  of  sugar  in  Cuba  repre- 
sent more  than  50  per  cent  of  the  production  of  the  island.  Cuba 
supplies  the  United  States  with  about  50  per  cent  of  its  annual 
consumption.  The  capital  investment  of  United  States  citizens  in 
Cuba  is  estimated  at  over  $1,000,000,000,  being  more  than  the  com- 
bined American  investments  in  the  sugar  industry  of  the  United 
States,  the  Philippines,  Ha\vaii,  and  Porto  Rico. 

Rates  suggested. — A  differential  of  1  cent  per  pound  between  Cuban 
sugars  and  those  of  the  United  States  is  sufficient;  more  is  unwar- 
ranted. 

Remarks. — The  increased  duty  affects  only  Cuba,  as  imports  from 
other  countries  are  negligible.  Cuba  is  under  the  protection  of  the 
United  States  and  her  sovereignty  is  restricted  by  treaty,  thus  plac- 
ing upon  the  United  States  heavy  moral,  if  not  legal,  obligations. 
Imports  into  Cuba  from  the  United  States  amounted  last  year  to 
over  $515,000.000.  Of  all  countries,  Cuba  stands  fourth  in  absorb- 
ing United  States  exports.  To  destroy  or  lessen  the  prosperity  of  the 
Cuban  sugar  industry  will  decrease  United  States  exports  of  food 
and  manufactured  products  to  Cuba.  The  Cuban  trade  is  of  im- 
mense value  to  United  States  shipping  interests.  The  action  of  Cuba 
in  immediately  following  the  United  States  in  declaring  war  on 
Germany  was  of  great  importance.  With  her  long  coast  line,  she 
prevented  the  use  of  harbors  by  the  German  fleet;  she  also  sup- 
pressed enemy  propaganda  in  her  own  territory  and  in  adjoining 
countries.  Slie  furnished  sugar  to  the  United  States  during  the  war 
at  a  low  rate.  The  offer  of  the  1919-20  crop  was  not  accepted,  but 
it  showed  her  desire  and  purpose.  The  failure  to  accept  it  and  the 
fear  of  sugar  scarcity  drove  the  price  of  sugar  to  23|  cents  per  pound 
in  this  country. 

The  increased  duty  under  the  emergency  tariff  was  a  severe  blow 
to  Cuba.  It  became  operative  in  the  last  part  of  May,  during  the 
peak  of  the  Cuban  crop  and  during  the  stagnation  of  the  sugar  mar- 


276  DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456. 

ket.  The  producer  in  Cuba  was  compelled  to  absorb  the  additional 
duty  of  0.6  cent  per  pound.  The  day  before  the  act  was  signed  Cuban 
sugars  were  selling  at  3.875  cents  per  pound  and  on  the  following 
day  at  3.275.  The  act  depreciated  the  value  of  sugar  in  Cuba 
$35,000,000. 

For  a  few  years  after  the  passage  of  the  reciprocity  act  in  1903 
Cuban  producers  received  the  benefit  of  the  20  per  cent  concession, 
but  after  a  few  years  this  benefit  was  transferred  to  consumers  in  the 
United  States.  On  the  other  hand,  producers  in  the  United  States 
who  export  to  Cuba  have  received  continuously  the  free  benefit 
of  the  concession  of  20  per  cent  upon  imports  into  Cuba.  If  Cuba 
is  to  be  denied  the  reciprocal  advantages  which  she  supposed  she 
would  receive  under  the  reciprocity  treaty,  she  will  be  compelled  to 
jnodify  her  own  tariff  schedule  and  increase  her  duties  against  Ameri- 
can goods  in  order  to  be  in  a  position  to  buy  cheaper  elsewhere. 

Hearings :  Pages  2241-2250. 

Witness :  Mr.  F.  L.  Craycraft,  representing  the  Pressed  Steel  Co. 
of  Cuba. 

Rates  suggested. — A  full-duty  rate  of  1.256  cents  per  pound,  a 
Cuban  rate  of  1.0048  cents  per  pound  or,  if  a  higher  full-duty  rate 
be  established,  a  sufficient  preferential  to  make  the  Cuban  rate  1.0048 
cents  per  pound. 

Remarks. — The  witness,  in  addition  to  testimony,  submitted  a  brief. 
His  chief  emphasis  was  placed  on  the  value  of  Cuba  as  a  market  for 
American  goods  and  the  injury  to  the  American  producer  which 
would  result  from  injury  to  Cuba  and  its  ability  to  purchase — condi- 
tions already  resulting  from  the  duty  imposed  in  the  emergency  tariff 
and  likely  to  result  from  the  Fordney  bill  should  the  latter  become 
a  law.  Imports  from  the  United  States  in  1920  were  valued  at 
$515,000,000  and  exports  to  the  United  States  at  $720,000,000.  The 
witness  submitted  elaborate  tables  showing  article  by  article  for  the 
years  1919  and  1920  the  total  export's  of  the  United  States  and  the 
exports  to  Cuba.  In  the  case  of  many  products  Cuba  stood  first 
among  all  nations  as  a  consumer  of  American  products.  He  raised 
the  question  whether  a  country  which  had  proved  itself  such  a  valu- 
able customer  should  have  its  chief  industry — the  one  upon  which 
it  relies  to  pay  for  its  imports — killed  by  the  proposed  tariff.  He 
further  pointed  out  that  the  concessions  made  by  Cuba  in  favor  of 
United  States  imports  ranged  from  20  to  40  per  cent,  while  the  con- 
cession received  by  the  island  on  sugar  was  only  20  per  cent.  Finally, 
because  of  Cuba's  peculiar  relation  to  the  United  States,  she  deserves 
special  consideration. 

Witness :  Mr.  E.  A.  S.  Clarke.    (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — The  witness  urges  that  the  duty  of  2  cents  per 
pound  on  sugar  now  in  force  under  the  emergency  tariff  be  reduced 
to  a  permanent  tariff  of  1  cent  per  pound  for  Cuba.  Under  present 
conditions  of  small  demand  and  large  crop  the  Cuban  producer  has 
had  practically  to  assume  the  increase  in  duty,  with  the  result  that 
his  selling  price,  far  from  showing  him  a  profit,  shows  in  substan- 
tially all  cases  an  actual  loss.  If  the  prosperity  of  Cuba  is  to  be 
shut  off  by  the  high  tariff,  American  producers  will  be  unable  to  do 
business  and  will"  lose  a  large  profitable  and  permanent  market. 
This  is  one  of  the  effects  on  the  general  economic  prosperity  of  the 
country  which  can  result  from  an  unduly  high  tariff. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  277 

Remarks. — Any  action  which  reduces  the  profit  of  the  Cuban  sugar 
producer  is  a  blow  to  the  American  capital  which  has  been  invested 
in  such  large  quantities  in  sugar  production  in  Cuba.  Cuba  ex- 
panded and  increased  her  sugar-producing  capacity  during  the  war 
at  the  instance  of  the  United  States,  and  her  ability  to  market  her 
crop  should  not  be  curtailed  in  an  unfriendly  way  by  a  Government 
which  owes  a  peculiar  duty  to  Cuba  and  is  bound  not  to  discrimi- 
nate economically  against  her. 

Witness:  Mr.  William  W.  Matos.  (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — A  2-cent  tariff  on  Cuban  sugar  will  be  ruinous 
and  will  seriously  injure  American  capital  invested  in  the  island. 
As  the  rate  of  exchange  between  the  two  countries  is  equal.  Cuba 
offers  the  best  foreign  market  to-day  for  all  American  goods.  A 
tariff  increase  on  sugar  would  largely  destroy  this.  A  2-cent  tariff 
will  quickly  curtail  sugar  production,  will  reduce  Cuba's  capacity 
to  buy  and  pay,  and  will  open  the  way  for  foreign  merchants  to  do 
big  business  in  Cuba,  securing  much  of  the  American  business. 

Remarks. — In  1920  the  value  of  American  products  sent  to  Cuba 
exceeded  $500,000,000,  more  than  the  total  of  all  products  sent  by  the 
United  States  into  Spanish  America.  During  the  World  War  Cuba 
sold  sugar  to  the  American  Government  with  very  small  profits, 
while  paying  American  sellers  the  full  prices  charged  for  manufac- 
tured goods  and  food  products. 

Witness:  Mr.  Samuel  M.  Vauclain,  representing  the  Baldwin  Lo- 
comotive Works.  (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — The  company  objects  to  the  2-cent  tariff  pro- 
posed on  Cuban  sugar.  They  have  a  total  of  approximately  $3,000,- 
000  credits  among  Cuban  railways  and  plantations,  and  if  the  United 
States  be  curtailed  as  an  outlet  for  sugar  by  a  high  tariff,  the  com- 
pany's interests  w7ould  suffer  heavily;  many  of  the  Cuban  plantations 
whose  notes  the  company  holds  would  be  forced  into  bankruptcy. 

Witness:  E.  Atkins  &  Co.  (Brief;  supplementing  appearance  at 
hearings.) 

Rates  suggested. — The  company  does  not  favor  an  increase  in  the 
tariff  on  Cuban  sugar.  The  emergency  act  of  May,  1921,  advanced  the 
tariff  on  it  by  60  per  cent,  making  the  present  tariff  on  sugar  much 
higher  than  it  had  been  for  many  years.  The  domestic  sugar  industry 
is  firmly  .established  and,  in  conjunction  with  Cuba,  assures  an  annual 
supply  of  sugar  greater  than  the  consumption.  The  tariff  tax  cannot 
be  defended  as  a  revenue  measure,  because  its  annual  cost  to  the  con- 
sumer will  be  over  $150,000,000,  of  which  approximately  only  one- 
half  will  find  its  way  into  the  United  States  treasury.  An  excise  tax 
of  one-half  cent  per  pound  assessed  on  all  sugars  consumed,  in  ad- 
dition to  the  old  tariff,  would  produce  about  $45,000,000.  This  would 
give  ample  protection  to  the  domestic  industry  and  would  yield  the 
Government  approximately  $90,000,000,  which  is  more  than  will  be 
secured  through  the  proposed  tariff  bill,  while  its  cost  to  the  con- 
sumer would  be  less.  A  message  to  the  Cuban  Congress  asks  that  a 
tariff  duty  of  30  per  cent  be  placed  on  articles  preceding  from 
countries  raising  the  duties  on  Cuban  sugar  and  tobacco. 
77134_22 19 


278  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    745(5. 

PARAGRAPHS  501  AND  502. — SUGAR. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Edwin  F.  Atkins,  representing  E.  Atkins  Co.,  New  York  City. 
Arbuckle  Bros.,  New  York  C.ty.     (Brief.) 

Mr.  H.  S.  Rubens,  representing  the  American  committee  on  Cuban  emer- 
gency, New  York  City. 
The  Hershey  Chocolate  Co.,  Hershey,  Pa.     (Brief.) 

Hearings :  Pages  2173-2184. 

Witness :  Mr.  Edwin  F.  Atkins,  representing  E.  Atkins  &  Co.. 
Boston  and  Xew  York. 

fiemarks. — The  witness  holds  that  rates  under  H.  R.  7456  are  higher 
than  rates  under  preceding  acts  for  30  years :  that  they  would  check 
importations  and  reduce  revenue.  Pointing  out  that  Cuba  was  in 
financial  straits,  he  rehearsed  the  relations  between  the  United  States 
and  Cuba,  leading  to  the  reciprocity  treaty,  and  claimed  that  these 
relations  placed  upon  the  United  States  an  obligation  to  aid  Cuba. 
He  feared  that  the  disastrous  situation  in  Cuba  might  lead  to  polit- 
ical disturbance  calling  for  intervention.  The  proposed  rates  would 
tend  to  make  the  situation  worse.  Cuba  was  a  large  purchaser  of 
American  commodities,  ranking  in  fact  as  fourth  among  all.  the 
value  of  such  imports  exceeding  $500,000,000.  The  Fordney  bill 
would  reduce  the  buying  power  of  Cuba,  with  the  inevitable  loss  of 
trade  to  American  concerns. 

If  the  Fordney  bill  is  enacted,  domestic  manufacturers  or  refiners 
coming  within  the  scope  of  paragraph  502  would  be  able  to  import 
full-duty-paying  sugars  at  25  per  cent  less  than  the  full  tariff  rates :. 
these  sugars  could  be  imported  by  the  beet-sugar  factories  or  by 
Louisiana  refiners  at  a  duty  of  1.50  cents  per  pound,  while  Cuba 
would  pay  1.60  cents.  The  object  of  the  treaty  with  Cuba  was  to 
give  the  island  a  preference  of  20  per  cent  over  all  like  imports  from 
other  countries.  Any  tariff  act  that  prevents  the  complete  carrying 
out  of  treaty  obligations  with  Cuba  would  manifestly  be  a  breach  of 
international  faith,  which  it  is  not  believed  the  Government  of  the 
United  States  intends  to  commit. 

Hearings :  Pages  2208-2210. 

Witness :  Arbuckle  Bros.,  Xew  York  City. 

(Brief  submitted  by  Mr.  M.  E.  Goetzinger.) 

hates  suggested. — Same  as  before  the  passage  of  the  emergency 
tariff ;  ultimately  to  come  on  the  free  list. 

Remarks. — The  witness  represents  refiners  pure  and  simple,  having 
no  interest  in  sugar  production.  The  refiners  are  dependent  upon 
Cuban  sugar,  being  unable  to  use  domestic  raw  beet  sugar  because 
none  is  made  in  this  country  for  sale.  They  can  not  often  use 
Louisiana  cane  sugar,  because  little  comes  north.  They  do  use  some 
sugars  from  Porto  Rico,  Hawaii,  and  the  Philippines,  but  these  are 
insufficient  to  satisfy  the  eastern  demand.  The  use  of  Cuban  raw 
sugar  is  consequently  not  a  matter  of  choice  but  of  necessity.  If  the 
cost  of  the  raw  material  were  to  be  legislated  out  of  line  with  the  law 
of  supply  and  demand,  there  would  result  a  depression  in  the  refining 
industry^  involving  unemployment,  idle  capital,  diminished  supplies. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456.  279 

and  increased  cost  to  consumers.  The  unemployment  would  affect 
some  six  or  eight  thousand  employees  in  New  York  alone,  to  say 
nothing  of  employees  in  other  refining  centers — Boston,  Philadelphia. 
Baltimore,  and  Savannah. 

To  raise  the  duty  will  not  do  away  with  the  surplus  now  existing 
in  Cuba.  80  long  as  that  surplus  remains  it  will  depress  the  sugar 
market.  The  faster  it  is  consumed  the  more  quickly  will  the  crisis 
be  passed  and  a  return  to  normal  conditions  brought  about. 

Freight  charges  establish  natural  zones  for  the  product  of  the  beet 
sugar  manufacturers  on  the  one  hand  and  the  eastern  refiners  on  the 
other,  with  a  neutral  zone  between.  When  an  increase  in  the  duty 
makes  it  possible  for  the  domestic  industry  to  penetrate  the  eastern 
cane  sugar  zone  the  eastern  consumer  who  pays  a  large  part  of  the 
tariff  bill  has  just  cause  to  hold  up  a  warning  finger  and  ask  to  be 
heard  from. 

Speaking  of  paragraph  502.  the  witness  pointed  to  "  a  new  and 
truly  startling  innovation  in  the  present  bill  (H.  R.  7456)  in  its 
proposed  discrimination  against  the  eastern  refiners  by  giving  to  beet 
factories  and  to  refiners  of  domestic  cane  a  substantial  reduction  in 
the  duty  on  all  foreign  sugars  which  they  may  choose  to  use  in  their 
establishments.  A  more  brazen  and  un-American  proposal  scarcely 
can  be  conceived,  nor  can  we  believe  that  it  will  receive  serious  con- 
sideration." 

Hearings :  Pages  2215-2240. 

Witness:  Mr.  Horatio  S.  Rubens,  representing  the  American  com- 
mittee on  Cuban  emergency,  New  York  City. 

Costs  and  selling  prices. — Cuban  sugar  is  now  (December,  1921)  be- 
ing quoted  for  January  delivery  in  New  York  at  2  cents  per  pound. 
This  is  not  a  reflex  of  the  cost  of  production.  There  has  not  been 
a  sale  of  Cuban  sugar  on  the  New  York  market  since  the  beginning 
of  the  year  that  has  not  been  below  the  cost  of  production. 

Size  of  industry. — The  witness  called  attention  to  large  American 
investments  in  the  Cuban  sugar  industry  which,  he  claimed,  should 
have  equal  consideration  with  American  investments  in  the  beet 
sugar  industry,  especially  in  view  of  the  peculiar  relation  of  wardship 
in  which  Cuba  stands  to  the  United  States.  He  pointed  out  that  the 
refining  interest,  having  an  investment  of  between  $400.000.000  and 
$500,000,000  as  compared  with  $175,000,000  in  the  beet  sugar  interest, 
and  employing  tens  of  thousands,  of  American  laborers,  was  de- 
pendent upon  Cuba  for  its  raw  material  and  that  this  at  least  was  an 
American  industry  employing  American  capital. 

Rates  suggested. — One  cent  per  pound. 

Remarks. — In  reply  to  the  charge  that  Cuban  labor  was  receiving 
only  65  cents  per  day.  the  witness  stated  that  labor  in  Porto  Rico  was 
receiving  only  50  to  60  cents.  The  truth  was  that  there  was  no  work 
at  that  season  and.  rather  than  permit  people  to  starve,  labor  was 
"  invented."  The  65  cents  per  day  did  not  represent  the  wage  rate 
through  the  year.  The  witness  also  called  attention  to  the  employ- 
ment, of  child  labor  in  the  beet  fields.  The  children  so  employed  are 
not  American  citizens:  they  are  Japanese.  Mexicans,  and  Russians 
of  a  type  who  will  not  become  citizens  or,  if  they  do,  will  become 


280  DIGEST   OF   TARIFF    HEARINGS.    H.   R.    7456. 

parents  of  children  that  for  lack  of  education  will  be  a  menace  to  the 
community.  He  was  fearful  of  the  rate  proposed  in  the  Fordney 
bill,  not  so  much  with  reference  to  the  emergency  brought  about  by 
present  conditions,  but  because  it  might  become  permanent  and  pre- 
vent Cuba  from  ever  coming  back  to  prosperity.  He  pointed  out  the 
great  value  of  a  prosperous  Cuba  to  the  United  States  as  a  market  for 
its  goods,  both  manufactures  and  farm  products. 

On  paragraph  502  the  question  raised  the  provision  under  which 
25  per  cent  reduction  should  be  allowed  to  certain  American  pro- 
ducers of  sugar  if  they  imported  a  certain  quantity  of  sugar,  this  to 
be  twice  as  much  as  they  produced  or  refined  from  'American  produc- 
tion. The  situation  now  is  that  the  full-duty-paid  sugar  is  sold  on 
the  basis  of  Cuban  sugar,  so  that  the  full  duty-paid  sugar  must  ab- 
sorb the  difference  between  the  Cuban  rates  and  the  full  rate.  The 
refiner  buys  the  sugar  at  a  lower  price  and  then  adds  the  full  duty, 
or  2  cents,  to  it,  and  that  sum  total  is  not  more  than  the  Cuban  sugar 
with  $1.60  added  to  it.  As  the  refiners  get  a  drawback,  the  refiner 
will  buy  only  the  full-duty  sugar.  He  will  not  buy  the  Cuban  sugar, 
because  he  will  get  2  cents  a  pound  drawback  for  what  he  pays  H 
cents  for.  In  the  other  case  he  will  get  onlv  $1.60  for  what  he  paid 
$1.20  for. 


In  a  brief  dated  August  5,  1921,  the  witness  contributes  observa- 
tions summarized  below : 

When  the  United  States  entered  the  World  War  Cuba  was  asked 
officially  whether  she  would  sell  that  years  entire  sugar  crop  to  the 
United  States.  She  voluntarily  agreed  to  the  plan,  ignoring  the  law 
of  supply  and  demand,  which  would  have  enriched  her  beyond  her 
dreams,  and  accepted  the  price  fixed  by  the  United  States, '4.6  cents 
per  pound.  In  the  following  year  the  United  States  again  purchased 
the  entire  Cuban  crop  at  the  fixed  price  of  5.5  cents  per  pound. 
These  sugars  were  handled  by  the  Sugar  Equalization  Board,  which 
resold  them  at  a  profit  of  over  $30,000,000  at  the  expense  of  the  Cuban 
producer  and  to  the  advantage  of  the  United  States  Treasury. 
During  this  period  everything  was  done  to  induce  Cuba  to  increase 
to  the  uttermost  her  production  of  sugar,  deemed  so  important  an 
aid  to  winning  the  war.  So  far  from  Cuba  being  responsible  for  the 
rise  in  the  price  of  sugar  in  1920,  she  offered  her  sugar  to  the  United 
States  at  a  very  reasonable  price.,  but  the  Government  refused  it. 
Now,  when  sugar  is  low  because  of  her  great  production,  the  United 
States  proposes  to  penalize  her  by  an  increase  of  duty.  Sujrar  is 
Cuba's  principal  staple,  upon  which  her  economic  future  depends. 
The  island  has  in  the  past  20  years  been  a  most  valuable  customer 
of  American  interests,  but  she  can  neither  pay  her  debts,  nor  purchase 
as  in  the  past,  if  her  sugar  crop  is  rendered  unprofitable  or  heavily 
curtailed.  A  falling  off  of  revenue  will  seriously  cripple  the  Cuban 
Government  at  the  risk  of  governmental  bankruptcy.  If  the  United 
States  were  to  annex  Cuba,  because  of  distress  brought  about  through 
American  tariff  action,  the  result  would  be  free  entry  of  sugar  into 
the  United  States,  and  the  condition  of  American  producers  who  so 
thoughtlessly  demanded  this  increase  of  2  cents  per  pound  duty 


DIGEST   OF   TARIFF   HEARINGS,   H.   E.    1456.  281 

would  be  the  reverse  of  what  they  are  seeking.  If  Cuba  should  be 
reduced  to  a  state  of  control  or  ownership  by  the  United  States,  the 
rest  of  the  Latin-American  world  might  consider  the  proposed  tariff 
as  a  means  to  an  end — the  end  of  the  independent  Republic  of  Cuba. 

Witness:  The  Hershey  Chocolate  Co.  (Brief;  no  appearance  at 
hearings.) 

Kates  suggested. — The  company  opposes  the  2  cents  per  pound 
tariff  on  sugar  as  proposed,  and  is  opposed  to  anything  above  1.256 
cents  per  pound  for  Cuba.  The  company  is  a  producer  of  sugar  in 
Cuba  for  its  own  manufacturing  operations  in  the  United  States, 
and,  as  such,  is  opposed  to  the  principle  embodied  in  the  provision  of 
paragraph  502,  permitting  the  importation  of  sugar,  for  certain  pur- 
poses specified,  at  three-fourths  the  rate  of  duty.  Unless  a  similar 
provision  for  reduction  of  duty  is  made  applicable  to  manufacturing 
consumers  of  sugar  in  the  United  States,  producing  sugar  for  their 
own  use  in  Cuba  or  elsewhere,  the  provision  is  inequitable.  Such 
persons,  including  the  company  itself,  would  have  to  sell  their  sugar 
abroad,  and  repurchase  it  in  the  United  States  from  some  other  manu- 
facturer of  sugar  privileged  to  avail  himself  of  the  benefit  of  the 
proposed -new  paragraph. 

PARAGRAPH  502. — SUGAR. 
WITNESSES,  AND  INTERESTS  BEPKESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

The   United    States    Sugar   Manufacturers'    Association,    New    York    City. 

(Brief.) 

The  Porto  Rican  sugar  producers.     (Brief.) 
Mr.  Frank  J.  DilHnghain,  representing  the  South  Porto  Rican  Sugar  Co. 

Hearings :  Pages  2302-2303. 

Witness :  Brief  submitted  by  Mr.  Henry  T.  Oxnard  for  the  United 
States  Sugar  Manufacturers'  Association. 

Rates  suggested. — Referring  to  H.  R.  7456,  which  provides  for  the 
importation  of  double  the  amount  of  domestic  manufactured  sugar 
at  three-fourths  of  the  regular  rate  on  other  sugars,  the  witness  states 
that  such  a  provision  would  be  class  legislation  and  would  also  be 
abortive  so  far  as  any  permanent  good  to  any  portion  of  the  domestic 
sugar  industry  is  concerned.  Owing  to  the  geographical  location 
and  prohibitive  freight  rates,  there  would  be  no  possibility  of  the 
great  bulk  of  the  domestic  producers,  especially  of  beet  sugar,  availing 
themselves  of  any  of  the  benefits  of  this  provision.  With  few  excep- 
tions, none  of  the  American  beet  sugar  factories  are  near  enough  to 
the  coast  or  the  Great  Lakes  to  be  able  to  import  and  refine  foreign 
sugar.  The  effect  of  the  adoption  of  paragraph  502  would  be  detri- 
mental to  both  the  domestic  beet  and  cane  sugar  industries.  The  do- 
mestic beet-sugar  industry  is  practically  opposed  to  the  incorporation 
of  this  paragraph  in  the  proposed  tariff  bill. 

Hearings:  Pages  2251-2255. 

Witness:  The  Porto  Rican  sugar  producers.     (Brief.) 
>'/.?«•.'  (>j  'm<l nxtni. — The  crop  of  the  1920-21  campaign  is  estimated 
at  practically   10*  per  cent  less  than  that  of   1919-20.     Since  the 


282  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

American  occupation  the  crop  has  grown  from  54.000  to  485,000  tons, 
representing  approximately  80  per  cent  of  the  value  of  the  output  of 
the  soil.  Reports  show  that  field  labor  has  received  as  high  as 
$2.75,  and  practically  none  of  the  field  hands  were  paid  less  than 
$1.50  per  day. 

Rates  suggested. — An  effective  tariff  of  2  cents  per  pound  is  sug- 

fested  as  necessary  to  equalize  the  high  cost  of  production,  increased 
reight  rates,  and  the  differential  which  the  refiners  have  established 
against  Porto  Rican  sugar  in  favor  of  Cuba  through  existing  regula- 
tions governing  the  drawback  on  sugar. 

The  Porto  Rican  sugar  industry  opposes  paragraph  502.  Aside 
from  the  questionable  legality  of  such  a  provision,  it  is  so  unfair  to 
domestic  producers,  living  beyond  the  limits  of  continental  United 
States,  that  it  is  difficult  to  understand  the  policy  that  prompts  it. 
It  would  further  aggravate  the  intolerable  condition  in  which  Porto 
Rican  sugars  find  themselves  by  broadening  the  market  for  foreign 
dutiable  sugars  at  the  expense  of  the  domestic  product,  as  the  great- 
est profit  would  accrue  in  working  up  those  dutiable  sugars  for 
export  so  as  to  receive  90  per  cent  of  the  duty  as  drawback. 

Remarks. — Porto  Rico  suffers  from  the  unjust  freight  discrimina- 
tion laid  down  in  Chicago;  that  is,  she  is  compelled  to  pay  practi- 
cally 100  per  cent  more  on  her  product  to  seaboard  refining  points 
than  is  charged  the  competitive  foreign  Cuban  sugars  for  an  iden- 
tical service.  Since  the  war,  there  have  been  numerous  readjust- 
ments of  these  sugar  rates  from  all  West  India  ports,  but  instead  of 
a  parity  being  maintained  between  Porto  Rico  and  Cuba,  the  Cubans 
have  secured  a  rate  almost  50  per  cent  cheaper  than  that  allowed 
Porto  Rico.  The  rate  from  the  domestic  island  to-day  on  full  and 
broken  cargoes  is  27  cents  a  hundred  pounds,  while  from  northside 
Cuban  ports  it  is  only  14|  cents.  Efforts  to  equalize  this  condition 
have  been  in  vain. 

Some  of  the  Porto  Rican  fields  have  been  in  continuous  use  for 
more  than  400  years,  and  her  depleted  soil  calls  for  continuous  and 
costly  applications  of  commercial  fertilizers. 

Hearings:  Pages  2255-2256. 

Witness:  Mr.  Frank  J.  Dillingham.  president,  representing  the 
South  Porto  Rican  Sugar  Co.,  New  York  City. 

Costs  and  selling  prices. — Figures  of  16  factories,  producing  about 
50  per  cent  of  the  output  of  sugar  in  Porto  Rico,  show  that  pro- 
duction costs  varied  in  1920  from  44  to  5^  cents  per  pound,  an 
average  of  5.03  cents.  The  estimated  costs  for  1921  are  from  3.5  to 
4.6  cents  per  pound,  an  average  f.  o.  b.  in  Porto  Rico  of  3.89  cents. 

Size  of  inrfusti-y. — The  production  of  sugar  in  Porto  Rico  has  in- 
creased from  371.000  tons  in  1912  to  489,000  tons  in  1921. 

Rates  suggested.—^  tariff  rate  of  2  cents  per  pound  is  necessary 
to  equal' ze  ccsts  between  Cuba  and  Porto  Rico. 

Remarks. — The  lack  of  virgin  land  in  Porto  Rico  is  the  greatest 
factor  in  making  the  cost  of  sugar  production  so  high;  fertilizing 
and  cultivating  is  quite  an  expense,  as  is  also  the  need  of  replanting 
on  an  average  of  every  two  years.  The  witness  submitted  tables 
showing  the  cost  of  production  in  several  sections  in  1920-21,  and 
estimated  cost  for  1921-22. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  283 

PARAGRAPH  503. — MOLASSES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  George  A.  Chapman,  representing  the  American  Feed  Manufacturers' 

Association  and  others. 
Mr.  George  H.  Forsee,  representing  hay  dealers,  Kansas  City,  Mo.,  and 

Missouri  River  feed  manufacturers. 
Mr.    Floyd   M.    Wilson,   representing  Denver   Alfalfa   Milling  &   Products 

Co.,  Lamar,  Colo. 
Mr.  Frank  C.  Jones,  secretary,  representing  the  Eastern  Federation  Feed 

Merchants,  Bullville,  N.  Y. 
Mr.  »J.   B.   Edgar    (including  statement   in   writing),    representing   Edgar 

Morgan  Co.,  Memphis,  Tenn. 

Mr.  L.  H.  Robertson,  cattle  feeder  and  farmer,  Abingdon.  111. 
Mr.   E.   Wilkinson,   representing   the  American   Cotton   Growers'   Associa- 
tion, Birmingham,  Ala.     (Brief.) 
Mr.  B.  T.  Manard,  representing  Penick  &  Ford  (Ltd.),  New  Orleans,  La. 

(Brief.) 
Mr.  Dwight  E.  Hamlin,  representing  the  Dwight  Hamlin  Co.,  Pittsburgh, 

Pa.     (Brief.) 
Mr.  A.  F.  Seay,  St.  Louis,  Mo.,  representing  St.  Louis  (Mo.)   and  East  St. 

Louis  (111.)  feed  manufacturers. 
The  American  Sugar  Refining  Co.     (Brief.) 
The  Publicken  Commercial  Alcohol  Co.     (Brief.) 
The  Ralston  Purina  Co.     (Brief.) 
The  Colorado  Alfalfa  Milling  Co.     (Brief.) 
Hon.  Lawrence  C.  Phipps,  Colorado.     (Brief.) 
E.  R.   Smead  &  Co.     (Brief.) 
Dwight  Hamlin,  (Inc.).     (Brief.) 

Hearings :  Pages  2354-2373. 

Witness:  Mr.  George  A.  Chapman,  representing  the  American 
Feed  Manufacturers'  Association  and  others. 

Costs  and  selling  prices. — Blackstrap  costs  1  cent  per  gallon  in 
Cuba,  but  the  price  to  the  American  consumer  Varies  according  to 
the  freight  rates;  4-|-  gallons  of  blackstrap  is  obtained  from  1  ton  of 
cane  sugar.  Cane  is  worth  $3.85  per  ton.  Black  strap  was  sold  in 
1921  at  2|  cents  per  gallon. 

Size  of  industry. — The  United  States  produces  about  8  per  cent 
molasses ;  the  other  92  per  cent  is  imported.  The  feed  manufactur- 
ing industry  has  been  built  up  within  the  past  15  years  with  a  capi- 
tal now  of '$200,000,000  at  least,  and  an  annual  output  of  3,000,000 
tons  of  ready  rations.  It  employs  thousands  of  persons. 

Rates  suggested. — In  the  interest  of  manufacturing  business  and 
of  American  farmers  blackstrap  molasses  should  be  permitted  free 
entry.  If  free  entry  can  not  be  given,  the  rate  of  duty  on  blackstrap 
molasses  should  not  be  in  excess  of  one-fourth  cent  per  gallon,  flat. 
Paragraph  503  now  specifies  one-fourth  cent  per  gallon  based  on 
48  per  cent  total  sugars,  and  an  additional  two  hundred  and  seventy- 
five  one-thousandths  of  1  cent  for  each  per  cent  of  total  sugars  over 
48.  The  tariff  has  never  before  been  based  on  total  sugar  content ;  it 
has  been  based  on  a  polariscope  test  of  40°.  The  association  suggests 
an  amendment  to  this  paragraph,  which  will  be  found  on  page  2373. 
The  Fordney  bill  would  assess  a  duty  on  the  average  blackstrap 
molasses  of  If  cents  per  gallon  or  over.  Basing  it  on  the  average  of 
54  per  cent  total  sugars  and  slightly  more  than  one-fourth  cent  of 
each  1  per  cent  total  sugars  over  48  per  cent,  there  would  be  6  addi- 
tional quarter  cents. 


284  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Remarks. — The  "  balanced  ration  "  for  live  stock  is  manufactured 
from  various  commodities,  of  which  blackstrap  molasses  is  the  basic 
material.  The  feed  manufacturers  make  a  ration  to  balance  the 
home-raised  feeds,  and  the  balanced  rations  carry  20  to  60  per  cent 
molasses.  While  it  formerly  required  about  a  year  to  fatten  or  finish 
cattle  for  the  market,  they  can  now  be  fattened  in  75  to  120  days  by 
using  molasses  as  a  supplemental  feed.  Some  molasses  runs  as*  high 
as  60  per  cent  sugar.  The  association  submitted  a  statement,  with 
tables,  in  regard  to  changing  the  basis  for  assessing  duty  on  black- 
strap molasses  as  proposed  in  H.  R.  7456. 

Hearings :  Pages  2373-2378. 

Witness :  Mr.  George  H.  Forsee,  representing  hay  dealers,'  Kansas 
City,  Mo.,  and  Missouri  River  feed  manufacturers. 

Rates  suggested. — The  interests  represented  look  with  alarm  upon 
a  tariff  which  will  further  handicap  their  operations;  they  do  not 
wish  an  ad  valorem  rate,  and  would  be  satisfied  with  the  "tariff  of 
about  one-fourth  cent  per  pound,  which  previous  bills  approximately 
represent. 

Remarks. — The  biggest  customers  for  molasses  feed  are  the  largest 
users  of  corn.  Corn  has  a  digestible  value  of  about  79  per  cent ;  black- 
strap molasses,  about  90  per  cent.  Molasses  used  as  a  concentrate  has 
proved  both  profitable  and  cheap,  animals  fed  on  cane  molasses 
fattening  in  75  to  100  days.  The  concentrated  feed  is  a  product  that 
has  been  sold  to  the  farmer  for  some  time  to  meet  a  long- felt  want; 
under  the  proposed  sliding  scale  that  will  amount. to  a  duty  of  from 
one-fourth  cent  up  to  2.75  cents,  the  tariff  will  make  it  almost  impos- 
sible to  merchandise  the  material.  Beet  molasses  feed  is  not  good 
for  cattle-fattening  purposes,  as  it  has  a  very  laxative  quality.  Large 
quantities  of  beet  molasses  are  used  in  the  making  of  vinegar  and 
yeast.  Large  importations  of  cane  blackstrap  will  not  affect  the 
value  or  the  quantity  of  beet  molasses  used. 

Hearings :  Pages  2378-2379. 

Witness :  Mr.  Floyd  M.  Wilson,  representing  alfalfa  milling  indus- 
try of  Colorado,  Wyoming.  Xew  Mexico,  and  Kansas. 

"Remarks. — The  use  of  alfalfa  meal  is  dependent  almost  wholly 
upon  the  use  of  blackstrap  molasses.  If  the  molasses  industry  is 
affected,  and  if  the  tariff  is  such  as  to  prohibit  the  importation  of 
blackstrap  for  feeding  purposes,  the  big  alfalfa  milling  industry  in 
the  West  will  have  to  go  out  of  business. 

Hearings:  Pages  2380-2382. 

Witness:  Mr.  Frank  C.  Jones,  secretary,  representing  the  Eastern 
Federation  of  Feed  Merchants,  Bullville,'N.  Y. 

Size  of  industry. — There  are  more  than  6.000  feed  dealers  in  nine 
States;  of  these  4,000  handle  molasses  and  molasses  feed.  These 
dealers  require  approximately  22,000,000  gallons  of  molasses  in  feed 
and  in  liquid  molasses.  The  average  blackstrap  contains  from  54  to 
55  per  cent  of  total  sugars.  Under  the  proposed  schedule  this  would 
pay  1^  cents  per  gallon  duty,  which,  applied  to  the  22.000,000  gallons, 
would  amount  to  a  trifle  over  $330.000.  This  amount  maj7  seem 
small,  but  it  is  to  be  placed  on  dairy  farmers,  engaged  in  an  industry 
which  is  unable  to  stand  this  burden. 

Rates  suggested. — The  interests  represented,  especially  the  dairy 
industry,  oppose  a  duty  on  blackstrap  molasses. 


DIGEST  OF   TARIFF    HEARINGS,   H.   R.    7456.  285 

Remarks.- — In  answer  to  a  questionnaire  sent  to  feed  merchants, 
the  Federation  found  that  200  firms  handle  a  total  of  14,839  tons  of 
molasses  feed  and  358,300  gallons  of  raw  molasses.  It  is  fair  to 
assume  that  the  4.000  feed  dealers  sold  296.780  tons  of  molasses  feed 
and  7,166,000  gallons  of  molasses.  The  average  amount  of  molasses 
used  in  molasses  feeds  is  30  per  cent  of  the  weight,  or  50  gallons  per 
ton  of  feed. 

Hearings :  Page  2382. 

Witness:  Mr.  J.  B.  Edgar  (including  statement  in  writing),  rep- 
resenting Edgar  Morgan  Co..  Memphis,  Tenn. 

Size^  of  industry. — There  are  12  mixed-feed  mills  in  Memphis,  rep- 
resenting an  investment  of  $6,000.000,  employing  more  than  1,000 
people,  and  with  a  capacity  of  some  3,500  tons  of  feed  daily. 

Rates  suggested. — Feed  manufacturers  of  Memphis  ask  that  black- 
strap molasses  be  placed  on  the  free  list,  in  order  that  the  feed  in- 
dustry and  the  live-stock  feeders  may  be  protected  on  their  basic 
raw  material.  The  mixed-feed  industry  has  developed  under  a 
tariff  of  approximately  one-fourth  cent  per  gallon.  If  that  duty  is 
retained  it  should  be  made  a  specific  duty,  as  buyers  of  blackstrap 
can  not  afford  to  import  it  if  the  duty  is  based  on  a  sliding  scale  yield- 
ing from  1  to  3  cents  per  gallon,  depending  on  sugar  content. 

Remarks. — The  American  producer  of  blackstrap  molasses  is 
already  protected  by  the  high  cost  of  transportation  in  Cuba,  the 
ocean  freight,  and  handling  charges,  aggregating  several  times  the 
value  of  blackstrap  in  Cuba.  Blackstrap  is  not  bought  by  feeders 
or  manufacturers  on  the  basis  of  sugar  content. 

Hearings :  Pages  2397-2398. 

Witness :  Mr.  L.  H.  Robertson,  representing  cattle  feeders  and 
farmers,  Abingdon,  111. 

Rates  suggested. — The  interests  represented  desire  that  Cuban 
blackstrap  molasses  be  placed  on  the  free  list. 

Remarks. — To-day,  by  using  feeds  containing  blackstrap  molasses, 
steers  can  be  fattened  into  very  good  beef  in  70  to  120  days,  where 
formerly  it  took  six  months  to  one  year.  Blackstrap  molasses  is  in- 
valuable in  feeding  cattle  for  fattening  purposes. 

Hearings :  Pages  2398-2401. 

Witness:  Mr.  E.  Wilkinson,  representing  the  American  Cotton 
Growers'  Association,  Birmingham,  Ala.  (Brief.) 

Costs  and  selling  prices. — A  high-grade  molasses  mixed  feed  man- 
ufactured under  the  present  duty  sells  in  Birmingham  for  $30  per 
ton. 

Rates  suggested. — The  duty  on  blackstrap  molasses  for  animal 
food  to  be  not  more  than  one-fourth  of  1  cent  per  gallon.  A  slid- 
ing scale,  rendering  uncertain  the  delivered  price,  is  not  desirable. 
A  duty  above  one-fourth  cent  per  gallon  would  render  less  valuable 
to  States  in  the  Southeast  all  State  and  Federal  aid  to  good-roads 
construction.  The  necessity  of  good  roads  in  Alabama  is  manifest, 
and  their  construction  will  grant  material  relief  to  cotton  growers 
and  their  families. 

Remarks. — The  members  of  the  association  are  buyers,  not  pro- 
ducers, of  feedstuff's,  and  desire  to  call  attention  to  the  increased 
costs  of  those  feeds  and  the  effects  it  will  have  upon  the  cotton- 


286  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   1456. 

growing  industry.  Any  increase  in  the  cost  of  existence  of  cotton 
growers  will  mean  greater  disaster  and  increased  suffering  for  many 
thousands  of  families.  Molasses  mixed  feeds  are  the  cheapest  source 
of  supply  under  present  conditions,  and  have  been  for  years  past. 
High  freight  rates  and  transportation  costs  prevent  imported  mo- 
lasses from  seriously  injuring  the  beet  product  in  the  northern  and 
western  markets,  and  the  same  influence  prevents  the  beet  product 
from  being  a  large  factor  on  the  eastern  seaboard  and  in  the  South- 
ern States.  It  costs,  in  rail  charges,  2f  cents  per  gallon  to  move 
imported  blackstrap  from  Mobile  to  Birmingham,  a  distance  of 
240  miles. 

Hearings :  Page  2402. 

Witness :  Mr.  B.  T.  Manard,  representing  Penick  &  Ford,  Xew  Or- 
leans. La.  (Brief.) 

Rates  suggested. — The  addition  to  paragraph  503  of  the  words 
"  Molasses  testing  not  above  40  per  cent  sucrose,  one-fourth  of  1  cent 
per  gallon,"  would  permit  the  entry  of  only  that  grade  of  molasses 
known  as  "blackstrap"  at  the  specific  rate  of  one-fourth  cent  per 
gallon. 

Remark*. — Blackstrap  is  handled  by  dealers  in  large  volumes  and 
a  close  margin  which  requires  terms  of  draft  attached  to  bill  of  lad- 
ing. To  enable  feed  manufacturers  to  conduct  their  business  effi- 
ciently, blackstrap  dealers  contract  ahead  for  Cuban  molasses  and 
supply  their  customers  as  their  requirements  demand.  In  the  spring 
of  1920  the  sinking  of  two  molasses  tank  ships  caused  serious  inter- 
ruption to  the  industry.  Buyers'  contracts  at  that  time  called  for 
imported  blackstrap  at  8  cents  per  gallon  and  feed  manufacturers 
had  orders  for  feed  which  had  to  be  filled.  As  a  result,  domestic 
producers  secured  as  high  as  22  cents  per  gallon  for  the  blackstrap. 

Hearings :  Page  2408. 

Witness :  Mr.  Dwight  Hamlin.  representing  the  Dwight  Hamlin 
Co.,  Pittsburgh,  Pa.  (Brief.) 

Rates  suggested. — The  company  would  have  the  basis  changed, 
so  that  all  blackstrap  molasses  can  come  in  at  the  basic  rate  of  not 
to  exceed  one-fourth  cent  per  gallon. 

A  tariff  of  one-fourth  cent  per  gallon  on  48  per  cent  total  sugars, 
and  an  additional  two  hundred  and  seventy-five  one-thousandths  of 
1  cent  for  each  additional  1  per  cent  sugars  on  blackstrap  molasses, 
would  put  the  feed  business  out  of  business.  On  60  per  cent  sugars, 
a  rate  as  high  as  3^  cents  per  gallon  would  be  required. 

Hearings :  Pages  2409-2410. 

Witness:  Mr.  A.  F.  Seay.  representing  St.  Louis  (Mo.)  and  East 
St.  Louis  (HI.)  feed  manufacturers. 

/Size  of  industry. — The  witness  stated  that  his  own  company  alone 
employs  some  200  traveling  representatives  and  gives  employment 
to  hundreds  of  others  in  its  mills  and  offices.  When  the  moiasses- 
feed  manufacturers  are  considered  as  a  whole,  their  total  business 
runs  into  a  tremendous  volume.  This  is  an  industry  worth  pro- 
tecting, because  it  renders  an  economic  service  to  the  country  at 
large. 

Rates  suggested. — The  company  objects  to  the  basis  of  the  Ford- 
ney  tariff  bill,  which  calls  for  a  maximum  of  48  per  cent  total  sugars 


DIGEST  OF  TARIFF  HEARINGS,  H.  R.  7456.  287 

and  a  penalty  for  every  I  per  cent  over  this  amount.  Imported 
blackstrap  molasses  vanes  considerably  in  total  sugar  content,  most 
cargoes  running  from  50  per  cent  to  over  60  per  cent,  yet  in  the 
manufacture  of  molasses  feed  it  is  not  possible  to  get  more  for  that 
testing  60  per  cent  total  sugar  than  that  testing  50  per  cent. 

Remarks. — By  combining  certain  feed  materials  and  blackstrap 
molasses,  fed  in  conjunction  with  all  home-grown  grains,  farmers 
are  enabled  to  produce  meat  and  dairy  products  in  a  shorter  period 
of  time  and  at  a  lower  cost  per  pound  and  at  the  same  time  get 
more  out  of  their  home-grown  grain  than  would  be  the  case  if  they 
fed  them  without  the  molasses- feed  mixture.  Blackstrap  molasses 
is  the  basic  raw  material  for  the  feed  manufacturing  industry. 

Witness:  The  American  Sugar  Refining  Co.  (Brief;  no  appear- 
ance at  hearings.) 

Rates  suggested. — The  company  desires  that  reasonable  tariff  rates 
on  molasses  be  based  upon  polariscopic  tests,  rather  than  total  sugars. 
The  bill  H.  R.  7456  provides  for  a  duty  of  one-fourth  cent  per  gallon 
for  molasses  containing  48  per  cent  or  less  of  total  sugars,  and  two 
hundred  and  seventy-five  one  thousandths  of  1  cent  additional  for 
each  additional  1  per  cent  of  total  sugars  and  fractions  of  1  per  cent 
in  proportion.  As  waste  molasses  contains  over  48  per  cent  total 
sugar,  the  two  hundred  and  seventy-five  one  thousandths  of  1  cent 
will  become  applicable. 

Remarks. — Waste  molasses  is  practically  valueless  in  Cuba  (it  is 
appraised  at  2  cents  per  gallon),  and  its  ultimate  value  is  almost 
entirely  reflected  in  the  cost  of  handling  and  transportation.  It  is 
largely,  if  not  exclusively,  used  for  stock  feeding. 

Witness:  The  Publicken  Commercial  Alcohol  Co.  (Brief;  no  ap- 
pearance at  hearings.) 

&ize  of  industry. — The  company  is  one  of  the  largest  distillers  of 
commercial  alcohol  in  Pennsylvania,  and  has  invested  much  money 
in  plant  and  properties. 

Rates  suggested. — The  company  states  that  a  tariff  of  1£  cents  per 
gallon  on  refuse  molasses  would  unquestionably  force  it  out  of 
business. 

Witness:  The  Ralston  Purina  Co.  (Brief;  no  appearance  at  hear- 
ings.) 

Size  of  industry. — Hundreds  of  millions  of  dollars  have  been  in- 
vested in  feed-manufacturing  plants  using  blackstrap  molasses  as  the 
basis  of  the  finished  product.  In  this  connection  many  other  by- 
products, more  or  less  unpalatable,  but  containing  good  feed  value, 
have  been  utilized.  A  list  of  cities  in  the  United  States  is  given  in 
which  important  feed  plants  are  located.  American  blackstrap  mo- 
lasses production  is  confined  almost  entirely  to  Louisiana. 

Rates  suggested. — The  company  states  that  its  contracts  with  the 
farmers  who  raise  the  grain  and  the  feeders  who  consume  it  convince 
it  that  blackstrap  should  be  on  the  free  list.  Blackstrap  molasses  is 
a  by-product  which  can  not  be  brought  into  America  unless  it  is  very 
low  in  cost,  and  it  is  only  during  recent  years  that  it  has  been  brought 
into  this  country  for  feed  purposes.  Prior  to  the  development  of  the 
feed  business  enormous  quantities  were  wasted,  but  during  1918  and 
1919  almost  1,000,000  tons  of  blackstrap  molasses  were  imported. 
When  the  price  of  materials  came  down  and  freight  rates  went  up 


288  DIGEST    OF    TARIFF    HEARINGS.    H.    R.    "4-56. 

this  enormous  business  fell  off  to  extremely  small  amounts.  A  tariff 
on  this  commodity  would  still  further  restrict  its  importation  and 
defeat  one  object  of  an  import  duty — namely,  revenue. 

Witness:  The  Colorado  Alfalfa  Milling  Co.  (Brief;  no  appear- 
ance at  hearings.) 

Rates  suggested. — In  the  interests  of  about  200  mixed-feed  plants 
of  America,  representing  a  business  of  $200.000.000  per  year,  the 
company  desires  that  paragraph  503  be  changed  to  read  "  54  per  cent 
total  sugars  "  instead  of  "48  per  cent,"  as  proposed.  With  this 
change,  these  plants  will  be  able  to  continue  their  business,  and  the 
general  tax  paid  by  the  mixed-feed  industry  of  America  will  be 
much  larger  than  the  Government  could  possibly  collect  with  a  pro- 
hibitive duty  as  proposed  in  H.  R.  7456. 

Remarks. — Of  the  250.000  tons  of  alfalfa  meal  annually  produced 
in  the  West,  97  per  cent  is  used  in  the  form  of  mixed  feed,  having 
refuse  molasses  as  its  basis.  In  1919-20,  when  the  total  production 
of  cane  and  beet  sirups  in  the  United  States  was  about  200.000  tons, 
about  1,000,000  tons  of  blackstrap  molasses  were  imported  from  Cuba. 
as  it  was  not  possible  for  the  sirup  industries  of  the  United  States 
to  supply  the  demand  for  molasses  used  for  mixed  feeds  and  other 
products. 

Witness:  Hon.  Lawrence  C.  Phipps,  Colorado.  (Brief:  no  ap- 
pearance at  hearings.) 

Rates  suggested. — The  witness  recommends  that  paragraph  503 
be  changed  to  read  "  54  per  cent  total  sugars  "  instead  of  i;  48  per 
cent."  This  will  permit  manufacturers  of  feedstuffs  and  others  to 
continue  the  use  of  blackstrap  molasses  without  decreasing  the 
amount  which  they  would  import.  The  run  of  blackstrap  exceeds 
48  per  cent  sugar 'content,  averaging  about  51  or  52  per  cent,  and 
running  in  some  cases  in  excess  of  54  per  cent  sugar  content. 

Remarks. — Blackstrap  molasses  is  largely  consumed  in  the  manu- 
facture of  alfalfa  meal,  used  in  feeding  live  stock.  Its  consumption 
by  alfalfa  meal  mills  in  Colorado  totals  a  very  large  tonnage. 

Witness:  E.  R.  Smead  Co.  (Brief;  no  appearance  at  hearings.) 
Rates  .suggested. — The  tariff  duty  on  blackstrap  molasses  should 
be  reduced  to  one-half  cent  per  gallon.  At  this  rate  it  would  be  paying 
about  25  per  cent  ad  valorem,  and  no  surtax  should  be  imposed  un- 
less the  molasses  contains  over  56  per  cent  of  total  sugars.  Molasses 
containing  over  56  per  cent  of  total  sugars  is  often  good  enough  for 
human  consumption  and  may.  therefore,  be  competitive  with  sugar. 
A  corresponding  duty  may  not  be  unreasonable,  but  no  molasses 
testing  56  per  cent  or  under  can  be  used  in  place  of  sugar.  A  million 
or  more  barrels  of  molasses  are  used  by  American  farmers,  for 
which  they  are  paying  about  $5  per  barrel.  With  the  passing  of 
H.  R.  7456  they  will  pay  at  least  $6,  and  for  the  increased  price  will 
get  seawater  instead  of  molasses.  Take  all  the  sugar  out  of  molasses 
and  it  is  worthless.  The  company  does  not  see  why  molasses  should 
pay  a  duty  on  all  the  kinds  of  sugars  it  may  contain,  or  at  the  rate 
of  about  2.75  cents  per  pound,  when  sugar  pays  duty  only  on  its 
crystallizable  content,  or  at  the  rate  of  2  cents  per  pound. 


DIGEST   OF    TARIFF    HEARINGS,    H.    R.    "456.  289 

Witness:  Dwight  Hamlin  (Inc.).  (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — The  best  interests  of  all  concerned  would  be 
served  by  changing  the  basis  on  blackstrap  molasses  to  54  per  cent 
total  sugars,  so  that  the  average  blackstrap  could  come  in  at  one- 
fourth  cent  per  gallon.  If  the  tariff  is  fixed  as  proposed  in  H.  R. 
7456,  at  one-fourth  cent  per  gallon  containing  48  per  cent  sugar  with 
an  additional  two  hundred  and  seventy-five  one-thousandths  of  a 
cent  for  each  additional  1  per  cent  total  sugars,  many  feed  manufac- 
turers and  other  plants  will  be  compelled  to  go  out  of  business. 
Molasses  containing  less  than  52  per  cent  sugar  causes  the  feed  to 
heat  and  spoil,  owing  to  the  excessive  moisture. 

PARAGRAPH  506. — CONFECTIONERY. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Walter  C.  Hughes,  representing  the  National  Confectioners'  Associa- 
tion. 

Hearings :  Pages  2410-2417. 

Size  of  industry. — According  to  the  1919  census,  there  are  about 
3,150  manufacturers  in  the  National  Confectioners'  Association,  rep- 
resenting an  investment  of  about  $315,000,000.  In  addition,  there 
are  3.500  candy  jobbers  and  about  75,000  candy  retailers,  these  not 
including  the  wholesale  druggists  and  grocers,  who  are  large  distrib- 
utors of  candy.  The  total  sale  of  candy  in  1919  was  about  $450.000,- 
000.  The  total  number  of  employees  in  the  industry  is  about  250.000. 
Exports  of  candy  in  1914  were  valued  at  $1.329.000;  in  1918,  $1.856,- 
000.  The  value  of  imports,  for  10  months  of  1921,  was  only  $157,000. 

Comparability. — There  are  many  large  manufacturers  in  Germany, 
England.  France,  and  Canada  who,  prior  to  the  war,  produced 
candies  in  large  quantities.  Economic  conditions  in  these  countries 
are  such  at  the  present  time  that  these  manufacturers  are  going  to 
seek  foreign  markets  for  the  output.  Unless  there  is  an  import  duty 
which  will  protect  the  American  industry,  it  is  going  to  face  very 
serious  competition.  About  80  per  cent  of  the  entire  production  in 
America  is  in  low-priced  candies,  on  which  the  keenest  competition 
is  feared.  Low  wages  and  cost  of  materials,  together  with  the  draw- 
back allowed  on  exports,  enable  foreign  countries  to  place  their 
candies  on  the  market  at  much  lower  figures  than  those  produced  in 
America.  Wages  in  Germany  are  4  to  11  cents  per  hour;  in  France, 
4  to  13.5  cents  per  hour;  in  England,  14  to  26  cents  per  hour.  Wages 
for  the  same  class  of  workers  in  the  United  States  range  from  25 
cents  to  $1  per  hour.  Japan  is  also  seeking  markets  in  America  for 
her  candies.  Their  up-fo-date  machinery  and  the  low  cost  of  raw 
materials  and  labor  permit  her  to  sell  at  much  lower  figures  than 
America.  The  average  wages  paid  male  employees  is  $1  per  day,  or 
$20  per  month  with  board,  as  compared  with  $4  to  $10  per  day  for 
male  workers  in  America.  The  Morinaga  Confectionery  Co.  (Ltd.) 
of  Tokyo,  employs  2,000  male  and  female  workers  and  'is  one  of  the 
largest  ^concerns  of  its  kind  either  in  Europe  or  Asia. 

Rates  suggested. — The  duty  on  candy  proposed  in  H.  R.  7456  is 
30  per  cent  ad  valorem.  The  association  recommends  that  it  be 
made  50  per  cent  ad  valorem.  With  free  sugar  contemplated,  the 


290  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    "456. 

duty  on  candy  valued  at  15  cents  per  pound  or  less  was  2  cents  per 
pound,  and  valued  at  more  than  15  cents  per  pound,  25  per  cent 
ad  valorem.  On  this  same  basis,  if  the  duty  is  to  remain  at  2  cents 
per  pound  on  96°  test  sugar  and  2.16  per  pound  on  refined  sugar, 
then  the  duty  on  candy  should  be  50  per  cent  ad  valorem.  (See  p. 
2415  for  table  "  Duty  on  cand}'  as  compared  with  the  duty  on 
sugar.") 

Remarks. — There  are  approximately  165  different  kinds  of  raw 
materials  used  by  candy  manufacturers  on  which  duties  have  been 
increased  anywhere  from  10  to  400  per  cent,  adding  that  much  to 
their  cost  of  production.  These  include  such  supplies  as  essential 
oils,  flavoring  extracts,  colors,  and  materials  of  that  kind  which  in- 
crease the  cost  of  the  finished  product. 

SCHEDULE  6.— TOBACCO   AND   MANUFACTURES   OF. 

PARAGRAPH  601. — TOBACCO. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Hon.  S.  M.  Shortrldge,  United  States  Senator  from  California. 

Mr.  Alfred  Aram,  representing  the  Associated  Tobacco  Growers  of  Cali- 
fornia, Fresno,  Calif. 

Mr.  Charles  Fox,  representing  the  National  Cigar  Leaf  Tobacco  Associa- 
tion, New  York  City. 

Mr.  Marcus  S.  Floyd,  representing  the  New  England  Tobacco  Growers' 
Association  and  others. 

FAVORING  HIGHER  DUTIES  : 

Hon.  Duncan  U.  Fletcher,  United  States  Senator  from  Florida. 

Cigar  Manufacturers'  Association  of  Tampa,  Fla.     (Brief.) 

Mr.  Junius  Parker,  representing  tobacco  manufacturers. 

Tobacco  Merchants'  Association  of  the  United  States.     (Brief.) 

Mr.  E.  Pendas,  representing  manufacturers  of  Havana  cigars. 

Mr.  Joseph  F.  Cullman,  sr.,  representing  the  National  Cigar  Leaf  Tobacco 

Association. 

Mr.  J.  B.  Duke,  New  York  City.     (Brief.) 
The  Alston  Tobacco  Co.,  New  York  City.     (Brief.) 
E.  A.  Calves  &  Co.,  Philadelphia,  Pa.     (Brief.) 

Hearings :  Pages  2433-2441. 

Witness:  Hon.  S.  M, Shortridge,  Senator  from  California. 

/Size  of  industry. — Turkish  tobacco  is  produced  in  some  10  coun- 
ties in  California.  Production  grew  from  500  pounds  in  1906  to 
1,525,000  pounds  in  1919,  dropping  to  700,000  pounds  in  1920. 

Comparability. — In  the  term  "  Turkish  tobacco  "  are  included  some 
20  varieties.  California  produces  Turkish  tobacco  which  comes  into 
competition  with  the  imported. 

Hates  suggested. — The  Senator  desires  the  rate  on  Turkish  tobacco 
to  remain  at  $1  per  pound  as  in  the  Fordney  bill. 

Remarks. — Since  1912  the  consumption  of  cigarettes  has  increased 
in  number  from  11,000,000,000  to  50,000,000,000  and  exports  from 
1,600,000,000  to  15,800,000,000. 

'Hearings :  Pages  2441-2499. 

Witness :  Mr.  Alfred  Aram,  representing  the  Associated  Tobacco 
Growers  of  California. 

Costs  and  selling  prices. — The  average  cost  of  production  of  Turk- 
ish type  tobacco  in  California  for  the  seven  years  ending  1920  was 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  291 

$1.34  per  pound.  For  the  war  and  postwar  period,  the  cost  of  pro- 
duction in  Macedonia  and  Thrace  averaged  $0.52  per  pound,  which 
is  higher  than  the  prewar  cost.  The  California  tobacco  has  been 
sold  at  from  25  cents  to  $1.25— whatever  the  large  manufacturers 
would  offer. 

Size  of  industry. — About  400  farmers  in  California  are  produc- 
ing Turkish  tobacco.  The  maximum  production  was  1,525,000 
pounds  in  1919.  Because  of  lack  of  market,  only  48,000  pounds 
were  produced  in  1921. 

Comparability. — The  witness  claims  that  California  tobacco  is  as 
good  as  the  imported  and  can  be  substituted  for  it,  and  that  it  has 
been  bought  by  manufacturers  of  pure  Turkish  cigarettes. 

Kates  suggested. — The  witness  desires  the  $1  per  pound  duty  on 
Turkish  tobacco  provided  in  the  Fordney  bill. 

Remarks. — Turkish  type  tobacco  has  a  smaller  yield  per  acre,  re- 
quires more  labor  in  handling,  and  is  very  different  in  character 
from  other  filler  tobacco  imported  under  the  same  paragraph. 

About  85  per  cent  of  the  present  consumption  of  cigarettes  is 
made  of  domestic  tobaccos  blended  with  Turkish.  Blended  cigarettes 
average  10  per  cent  Turkish,  and  on  this  basis  the  duty  of  $1  per 
pound  on  Turkish  tobacco  would  amount  to  $0.0032  per  package 
of  20  blended  cigarettes. 

The  American  smoker  is  taxed  less  on  his  tobacco  and  gets  less 
for  his  money  than  the  people  in  any  other  civilized  country  where 
there  is  not  a  Government  tobacco  monopoly.  Some  American 
brands  sell  in  England  for  the  same  or  at  a  less  retail  price  than 
here,  while  the  British  tax  is  considerably  heavier. 

The  large  American  cigarette  manufacturers  do  not  want  to  en- 
courage the  growing  of  Turkish  type  tobacco  in  California  for  two 
reasons :  In  the  first  place,  they  know  that  it  can  not  be  produced  as 
cheaply  in  California  as  in  the  Levant  and  they  fear  the  establish- 
ment of  the  industry  in  California  as  a  basis  for  a  demand  for  a 
protective  duty;  secondly,  with  the  control  of  the  imports  of  Turk- 
ish tobacco  and  with  the  present  demand  for  blended  cigarettes,, 
they  feel  that  they  have  some  protection  against  manufacturing 
competition. 

Hearings :  Page  2530. 

Witness:  Mr.  Charles  Fox,  representing  the  National  Cigar  Leaf 
Tobacco  Association. 

Remarks. — Commenting  on  the  testimony  of  previous  witnesses, 
the  witness  thinks  the  50  per  cent  allowance  of  wrapper  tobacco  is 
not  too  high.  Under  the  present  law,  if  a  mixed  bale  contains  more 
than  15  per  cent  wrapper  it  is  all  assessed  at  the  wrapper  rate;  this 
is  unfair  to  the  importer  of  Havana  tobacco.  The  increase  in  duty 
to  50  per  cent  will  allow  the  importation  of  certain  grades  which  now 
can  not  be  brought  in  economically.  The  Treasury  Department  has 
recommended  this  change. 

Mr.  Fox  also  submitted  briefs,  letters,  etc.     (See  pp.  2538-2547.) 

Hearings:  Pages  2547-2554. 

Witness:  Mr.  Marcus  L.  Floyd,  representing  the  New  England 
Tobacco  Growers'  Association  and  the  Florida  and  Georgia  Tobacco- 
Growers'  Association. 


292  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

Costs  and  selling  prices. — The  present  cost  of  labor  in  manufac- 
turing cigars  is  about  20  per  cent  less  than  in  1919  and  1920.  De- 
creases in  average  prices  in  different  kinds  of  cigar  tobacco  from 
1919  to  1921  have  ranged  from  10  to  28  per  cent. 

Rates  suggested. — A  rate  of  $2.50  per  pound  on  unstemmed 
wrapper  tobacco.  This  would  mean  only  half  a  cent  on  a  cigar. 

Remarks. — The  claim  of  the  manufacturers  that  the  proposed  in- 
crease in  duty  will  force  the  8-cent  cigar  into  the  9-cent  'class  is 
not  justified,  considering  the  decline  in  tobacco  prices. 

Inasmuch  as  Congress  apparent!}7  desires  to  increase  the  revenue 
from  tobacco,  why  not  do  it  through  an  import  duty  which  will 
benefit  the  domestic  tobacco  growing  industry? 

Hearings:  Pages  2510-2514. 

Witness:  Hon.  Duncan  U.  Fletcher,  United  States  Senator  from 
Florida. 

Costs  and  selling  prices. — The  internal-revenue  tax  and  duties 
on  raw  materials  have  so  increased  that  the  manufacturers  can  not 
put  out  a  two-for-a-quarter  clear  Havana  cigar. 

Size  of  industry. — Key  West  and  Tampa  are  largely  dependent 
upon  the  cigar  industry.  In  Key  West  the  average  annual  produc- 
tion is  60.000,000  to  '70,000,000  cigars.  In  Tampa  as  many  as 
400,000,000  clear  Havana  cigars  have  been  manufactured  annually 
as  compared  with  220.000.000  in  Cuba. 

Rates  suggested. — The  Senator  desires  that  the  rates  on  cigar 
filler  and  Havana  wrapper  tobacco  be  not  raised  above  the  1909  and 
1913  rates. 

Remarks. — During  the  war.  when  wage  earners  and  business  men 
were  receiving  high  returns,  there  was  a  good  market  for  20  and 
25  cent  cigars,  but  the  demand  has  now  fallen  off.  There  are 
15,000  people  engaged  in  the  industry  in  Tampa  and  5.000  in  Key 
West,  and  the  manufacturers  feel  sure  that  the  proposed  increase 
in  duties  will  seriously  injure,  if  not  ruin,  the  industry. 

Sumatra  and  Java  wrapper  tobacco,  rather  than  Havana  wrap- 
per, constitutes  the  real  competition  writh  Florida  and  Connecti- 
cut wrapper.  Whatever  the  duties  on  Sumatra  and  Java  wrapper 
tobacco  may  be,  the  duties  on  Cuban  wrapper  and  filler  ought  not 
to  be  raised,  but  lowered. 

Increased  importation  of  Havana  filler  tobacco  helps  the  growo.- 
of  American  Sumatra  wrapper  because  the  Cuban  filler  is  wrapped 
with  it. 

Hearings :  Pages  2514-2521. 

Witness :  The  Cigar  Manufacturers'  Association  of  Tampa,  Fla. 
(Brief.) 

Costs  and  selling  prices. — An  example  is  given  of  a  pure  Havana 
cigar  made  to  retail  at  15  cents.  The  manufacturer's  cost  was 
$102.46  per  1,000  and  his  selling  price  $105,  leaving  a  profit  of 
$i2.54.  The  increase  in  duty  under  the  proposed  rates  would  be 
$2.73. 

Size  of  industry. — The  production  of  cigars  in  Tampa  increased 
from  147.000,000  in  1901  to  423.000,000  in  1919. 

Rates  suggested. — The  association  desires  that  the  rates  on  leaf 
and  scrap  tobacco  remain  as  in  the  act  of  1913  or  be  reduced.  This 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  293 

is  necessary  in  order  to  maintain  the  domestic  clear  Havana  cigar 
industry. 

Remarks. — Under  the  present  internal-revenue  system,  the  rates 
are  graded  according  to  the  retail  price.  An  increased  duty  would 
necessitate  a  higher  retail  price,  which  might  mean  throwing  the 
cigar  into  the  next  higher  class,  with  an  increase  of  $3  in  internal 
revenue.  The  trade  would  not  stand  this  increase  and  business 
would  be  cut  down. 

Great  Britain,  in  1920,  increased  the  duty  on  cigars  to  such  an 
extent  that  the  trade  was  killed  and  the  revenue  greatly  reduced. 

Cuban  tobacco  is  used  not  only  in  the  Florida  clear  Havana 
cigar  industry  but  also  on  a  large  scale  as  filler  with  Connecti- 
cut shade-grown  wrapper.  Havana  filler  is  also  used  with  Pennsyl- 
vania, Ohio  and  Wisconsin  filler  and  binder  tobacco  and  greatly 
improves  the  market  for  them. 

Scrap  tobacco  is  blended  with  domestic  filler  tobacco  to  give  the 
Havana  flavor  in  cheaper  cigars.  The  proposed  duty  on  scrap  to- 
bacco would  greatly  reduce  imports  and  revenue. 

Hearings :  Pages  2419-2433. 

Witness:  Mr.  Junius  Parker,  representing  the  American  Tobacco 
Co.,  R.  J.  Reynolds  Tobacco  Co.,  Ligget  &  Myers  Tobacco  Co.,  P. 
Lorillard  Co.  (Inc.),  the  Tobacco  Products  Corporation.  Larus  & 
Bro.  Co.,  Block  Bros.  Co.,  the  Tobacco  Merchants'  Association. 

Costs  and  selling  prices. — The  average  price,  in  bond,  of  Turkish 
tobacco  in  1920  was  94  cents,  or  about  $1.35  per  pound,  duty  paid. 

Size  of  industry. — The  annual  production  of  cigarettes  is  around 
50,000,000. 

Comparability. — No  tobacco  of  Turkish  type  has  ever  been  grown 
in  California.  California  tobacco  differs  from  other  domestic  ciga- 
rette tobacco  in  the  same  way  that  Burley  differs  from  Virginian. 
The  large  manufacturers  have  themselves  tried  to  raise  Turkish 
tobacco  in  California  and  other  States  and  have  come  to  the  con- 
clusion that  Turkish  tobacco,  or  tobacco  that  could  be  substituted 
for  it,  can  not  be  raised  in  this  country.  This  is  substantiated  by 
experience  with  tobacco  bought  from  California  growers. 

There  are  as  many  as  42  varieties  of  Turkish  tobacco  in  one  brand 
of  cigarettes ;  different  kinds  are  used  to  give  the  different  qualities — 
aroma,  burning,  taste — that  are  desired. 

Rates  suggested. — Elimination  of  clauses  applying  specifically  to 
Turkish  tobacco,  which  would  then  come  in  at  the  same  rate  as  cigar 
filler,  for  which  35  cents  per  pound  is  recommended. 

Remarks. — Imports  of  Turkish  tobacco  amount  to  about  40,000,000 
pounds.  An  advance  of  65  cents  in  duty,  as  proposed,  would  mean 
an  added  tax  on  $26,000,000  on  the  cigarette  industry — approxi- 
mately 50  cents  per  thousand  on  the  whole  number  of  cigarettes  pro- 
duced. Treasury  officials  have  said  that  taxes  on  tobacco  were  as 
high  as  profitable  for  revenue  purposes.  Production  has  fallen  from 
53,000.000  in  1919  to  47,000,000  in  1920. 

Since  particular  brands  of  cigarettes  use  different  proportions  of 
Turkish  tobacco  and  to  change  the  formula  would  ruin  the  valuable 
brand,  an  increased  tax  on  Turkish  would  fall  unevenly  and  be  dis- 
criminatory, as  between  brands.  If  it  is  imperative  that  the  tax  on 
77134—22 20 


294  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

cigarettes  be  increased,  manufacturers  would  prefer  a  flat  increase 
in  the  internal  revenue  tax,  since  that  would  bear  evenly  on  the 
whole  industry. 

The  only  tobacco  grower  who  has  asked  an  increased  duty  on 
Turkish  is  Mr.  Aram,  of  California;  southern  cigarette  tobacco 
growers  realize  that  blending  with  Turkish  helps  to  sell  their  tobacco. 

Only  700,000  pounds  of  tobacco  is  grown  in  California  as  com- 
pared with  an  annual  requirement  of  40,000,000  pounds  of  Turkish. 

Hearings :  Pages  2499-2510. 

Witness :  Tobacco  Merchants'  Association  of  the  United  States. 
(Brief.) 

Costs  and  selling  prices. — The  average  price  paid  for  Turkish  to- 
bacco in  1920  was  91.5  cents  per  pound  plus  the  duty  of  35  cents  per 
pound. 

Size  of  industry. — Cigarette  manufacturers  use  annually  150,000,- 
000  pounds  of  tobacco,  valued  at  $62,000,000.  The  annual  volume  of 
business  at  consumers'  prices  is  over  $500,000,000.  The  California 
growers  claim  a  maximum  production  of  1,500,000  pounds,  valued  at 
$2,250,000.  The  average  requirements  of  Turkish  are  40,000,000 
pounds. 

Comparability. — Some  of  the  large  manufacturers  have  experi- 
mented with  California  tobacco,  but  none  of  £hem  would  dare  sub- 
stitute it  for  Turkish  in  any  of  their  valuable  or  well-known  brands. 

Rates  suggested. — The  brief  protests  against  any  increase  in  the 
duty  on  Turkish  tobacco  over  the  present  rate  of  35  cents  per  pound. 

Remarks. — Taxes  on  the  cigarette  industry  have  already  reached 
the  point  of  diminishing  returns,  and  the  Treasury  experts  have  so 
advised  Congress. 

To  protect  what  Mr.  Aram  claims  as  a  possible  industry  with  a 
possible  income  of  $375,000  per  year,  he  seeks  to  tax  the  cigarette 
industry  to  the  additional  extent  of  $26,000,000  annually.  If  Cali- 
fornia can  not  produce  tobacco  to  compete  with  Turkish  tobacco, 
costing  $1.26  per  pound,  while  the  highest  average  price  that  do- 
mestic tobacco  ever  sold  for  was  41  cents  per  pound,  it  is  impossible 
to  produce  any  tobacco  on  a  commercial  basis. 

Cigarette  manufacturers  have  no  sinister  motive  in  not  using  Cali- 
fornia tobacco;  they  have  no  other  interest  than  to  get  their  raw 
material  at  a  fair  price  and  without  embarrassment.  No  American 
manufacturer  is  consciously  selling  his  product  in  foreign  countries 
at  lower  rates  of  profit  than  in  this  country. 

Hearings :  Pages  2521-2530. 

Witness:  Mr.  E.  Pendas,  representing  manufacturers  of  Havana 
cigars,  Florida. 

Costs  and  selling  prices. — On  the  two-for-a-quarter  pure  Havana 
cigars  it  was  found  that  the  cost  per  1,000  would  be  $90.50  while 
they  would  have  to  be  sold  at  $85. 

Comparability. — The  better  quality  of  pure  Havana  cigars  made 
in  Florida  compares  very  favorably  in  quality  with  the  Cuban-made 
cigars. 

Rates  suggested. — The  Florida  manufacturers  protest  against  any 
increase  in  duties  on  cigar  wrapper  or  filler  tobaccos;  an  increased 
duty  would  mean  decreased  revenue. 


DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456.  295 

Remarks. — The  witness  thinks  that  the  allowance  of  50  per  cent 
of  wrapper  tobacco  in  mixed  bales  would  be  unfair  to  the  Govern- 
ment and  that  35  per  cent  would  be  ample. 

Before  the  war.  80  to  85  per  cent  of  the  cigars  produced  in  Florida 
retailed  at  10  cents.  During  the  war,  rawr  materials,  taxes,  and 
wages  so  increased  that  the  10-cent  cigar  disappeared  and  the  produc- 
tion of  two-for-a-quarter  cigars  was  negligible.  Now,  while  the 
demand  for  high-priced  cigars  has  fallen  off,  it  is  impossible  to  pro- 
duce 10-cent  or  two-for-a-quarter  Havana  cigars,  although  wages 
have  been  lowered  about  17  per  cent  since  the  high  point.  For  a 
cigar  sold  at  15  cents  before  the  war  the  cigar  maker  got  $17,  dur- 
ing the  wTar  $24,  and  now  $21  per  thousand. 

An  increased  duty  would  force  the  manufacturer  to  increase  the 
retail  price  of  the  cigar  in  order  to  come  out  even.  But  this  might 
throw  the  cigar  into  the  next  higher  internal  revenue  class  and  mean 
an  addition  of  $3  per  1,000  in  internal  revenue. 

Havana  tobacco  does  not  compete  with  any  domestic  leaf,  but 
when  blended  with  the  domestic  it  increases  the  value  of  the  latter. 

Hearings:  Pages  2531-2538. 

Witness:  Mr.  Joseph  F.  Cullman,  sr.,  representing  the  Xational 
Cigar  Leaf  Tobacco  Association. 

Costs  and  selling  prices. — The  production  of  cigars  has  practically 
stood  still  for  the  last  20  years,  despite  the  enormous  increase  in 
population.  In  1920.  8,500,000,000  cigars  were  manufactured. 

Rates  suggested. — Restoration  of  the  1913  rates  on  filler  and  scrap 
tobacco  (unstemmed  filler  tobacco,  35  cents  per  pound;  stemmed,  50 
cents  per  pound ;  scrap,  35  cents  per  pound) ,  and  a  rate  not  exceed- 
ing $1.85  per  pound  on  wrapper  tobacco. 

Remarks. — Nearly  one-half  of  the  cigars  made  in  the  United 
States  are  covered  wTith  Sumatra  wrappers.  The  proposed  increase 
of  25  cents  per  pound  on  wrapper  tobacco  would  mean  50  cents  per 
1,000  cigars,  which  would  have  to  be  passed  on  to  the  consumer 
through  increased  retail  prices.  An  increased  retail  price  might 
mean  that  a  cigar  of  a  particular  grade  would  be  thrown  into  the 
next  higher  class  for  internal  revenue.  Then  $3  per  1,000  internal 
revenue  would  be  added.  The  only  way  to  avoid  this  would  be  to 
reduce  wages  or  to  cut  the  price  paid  for  domestic  filler  and  wrapper 
tobacco. 

The  shade-grown  wrapper  tobacco  industry  of  Xew  England  is 
a  growing  and  prosperous  business,  largely  in  the  hands  of  six  or 
eight  large  concerns. 

The  increased  duty  on  filler  tobacco  would  be  even  more  disastrous 
to  the  cigar  industry  than  that  on  wrappers.  Havana  fillers  do  not 
compete  with  domestic  tobaccos,  but  the  importation  of  this  tobacco 
stimulates  the  production  of  domestic  leaf  for  wrapper  and  for  filler 
to  blend  with  Havana. 

The  proposed  increase  in  duty  on  scrap  tobacco  would  be  prohib- 
itory. Imports  of  scrap  are  mostly  of  Havana  tobacco  used  to  give 
low -'priced  cigars  Havana  flavor. 


296  DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456. 

Witness:  The  New  York  special  agent  of  the  United  States  cus- 
toms service.  New  York.  (Brief:  no  appearance  at  hearings.) 

fifties  suggested. — The  Xew  York  supervising  examiner  of  tobacco 
had  suggested  to  the  writer  that  a  simple  change  in  paragraph  181 
tact  of  1913)  would  afford  about  $5.000,000  additional  revenue. 
That  is.  adding  after  "  35  cents  per  pound  "  the  phrase  "  if  suitable 
for  use  without  being  stemmed,  or  if  stemmed.  50  cents  per  pound." 
This  would  make  dutiable  at  the  stemmed  rate  all  Turkish  tobacco, 
Latakia  tobacco,  and  so-called  "  pigtail  *'  tobacco,  suitable  without 
stemming  for  use  in  making  cigarettes,  snuff,  and  pipe  mixtures. 

Another  suggestion  is  that  the  line  of  demarcation  of  15  per  cent 
should  be  raised  to  50  per  cent  on  mixed  bales  containing  wrapper 
tobacco.  This  would  permit  the  importation  of  higher-grade  Cuban 
tobacco. 

Witness:  Mr.  J.  B.  Duke,  Xew  York  City.  (Brief;  no  appearance 
at  hearings.) 

Remarks. — Inclosed  with  the  brief  is  a  series  of  charts  designed  to 
show  that  the  tobacco  industry  is  bearing  more  than  its  fair  share 
of  taxation  and  is  being  -endangered  thereby.  The  internal-revenue 
tax  on  cigarettes  amounts  to  about  one-third  of  the  retail  price.  The 
volume  of  tobacco  products  is  declining  and  many  factories  have  been 
closed. 

Witness:  The  Alston  Tobacco  Co..  Xew  York  City.  (Brief;  no. 
appearance  at  hearings.) 

C0mjHxrcilbUtiy. — All  attempts  to  grow  Turkish  type  tobacco  in  this 
country  have  met  with  failure,  since  "  nowhere  "  do  there  appear  to 
exist  soil  and  climatic  conditions  similar  to  those  in  the  tobacco- 
growing  regions  of  Turkey  and  Greece.''  The  best  grades  of  tobacco 
produced  in  this  country  have  not  equaled  in  quality  the  lowest  grades 
grown  in  Turkey. 

Rates  suf/f/esfecf. — The  writer  protests  aijainst  the  proposed  increase 
in  duty  on  Turkish  tobacco,  a  raw  material  essential  to  the  cigarette 
industry. 

Witness :  A.  A.  Calves  &  Co.,  importers  of  Havana  tobaccos,  Phila- 
delphia. Pa.  (Brief:  no  appearance  at  hearings.) 

Rates  $i/f/</exted. — The  company  protests  against  any  increase  in 
duties  on  Cuban  tobacco,  especially  on  Cuban  filler  tobacco.  An 
increase  in  duty  would  mean  a  tremendous  decrease  in  consumption 
or  would  reduce  the  price  which  the  manufacturer  could  pay  for  do- 
mestic filler. 

Rernarl-*. — The  leaf-tobacco  and  cigar  industries  have  been  at  a 
standstill  for  the  last  20  years  through  being  overburdened  with 
taxes.  Most  of  the  imported  filler  tobacco  comes  from  Cuba.  It  is 
used  principally  to  blend  with  domestic  filler  and  thus,  instead  of 
competing  with  domestic  filler,  increases  the  sale  of  the  American 
leaf. 

A  copy  of  resolutions  adopted  by  the  Xational  Cigar  Leaf  Tobacco 
Association,  protesting  against  any  increase  in  internal-revenue  tax 
on  cigars,  accompanies  the  brief. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  297 

SCHEDULE    7. — AGRICULTURAL    PRODUCTS    AND    PROVISIONS. 
HEARINGS  RELATING  GENERALLY  TO  FARM  PRODUCTS 

WITNESSES.'  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Prof.  Thomas  C.  Atkeson,  representing  the  National  Grange,  Patrons  of 

Husbandry,  Washington,  D.  C. 

Mr.  Gray  Silver,  representing  the  American  Farm  Bureau  Federation. 
Mr.  John  H.  Kirby,  president  of  the  Southern  Tariff  Association,  Houston, 

Tex. 
Mr.  Charles  DeB.  Claiborne,  representing  southern  and  national  banking 

interests,  New  Orleans,  La. 
Mr.  Henry  N.  Pharr,  Olivier,  La. 

FAVORING  LOWER  DUTIES  : 

Mr.  L.  J.   Scaramelli,  representing  the  Italian  Chamber  of  Commerce  of 
New  York,  New  York  City. 

Hearings :  Pages  2555-2557. 

Witness:  Prof.  Thomas  C.  Atkeson,  representing  the  National 
Grange.  Patrons  of  Husbandry. 

Remarks. — Although  absolutely  a  nonpolitical  organization,  the 
National  Grange  demands  for  agriculture  and  agricultural  products 
a  fair  and  equal  protection  so  long  as  protection  is  the  tariff  policy 
of  the  Government.  It  is  unfair  to  apply  arguments  for  free  raw 
materials  to  farm  products;  to  the  farmer  these  products  are  fin- 
ished materials,  upon  which  his  labor  has  been  expended. 

Hearings :  Pages  2557-2560. 

Witness:  Mr.  Gray  Silver,  representing  the  American  Farm 
Bureau  Federation.  (Brief.) 

Remarks. — ';  The  farmer's  interest  in  the  tariff  question  in  the  past 
has  been : 

"(1)  As  a  producer,  he  desires  protection  in  fair  relation  to  the 
protection  given  to  manufacturing  industries  from  the  competition 
of  foreign  products,  produced  under  conditions  of  natural  advantage 
or  very  cheap  labor. 

"(2)  As  a  consumer,  he  is  opposed  to  excessively  high  tariffs  which 
would  unduly  increase  the  price  of  the  supplies  which  enter  into  the 
cost  of  his  product,  and  rates  which  unduly  increase  the  cost  of  man- 
ufactured products  which  farmers  use  as  a  part  of  the  general  con- 
suming public. 

"(3)  As  an  exporter  of  over  half  of  the  Nation's  excess  balance  of 
exports,  he  is  interested  in  the  effect  of  the  tariff  on  foreign  demands 
for  his  products  and  in  maintaining  the  balance  of  exports  over 
imports." 

Rates  of  duty  should  be  only  high  enough  to  prevent  the  depres- 
sion of  domestic  markets  by  the  importation  of  large  quantities  of 
foreign  goods.  Excessive  tariffs  which  would  increase  all  prices 
would  not  be  to  the  ultimate  advantage  of  the  nation  or  of  producers. 

A  means  of  tariff  adjustment  which  will  operate  quickly  is  needed. 
The  extension  of  the  powers  of  the  President  or  the  Tariff  Commis- 
sion to  meet  any  emergency,  operating  within  limits  fixed  by  Con- 
gress, would  aid  greatly  in  increasing  the  protective  services  of  the 
tariff. 


298  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   74-56. 

The  agricultural  products  upon  which  a  protective  tariff  is  effec- 
tive are  relatively  few.  There  must  be  reasonable  limits  to  protec- 
tion in  order  not  to  foster  profiteering. 

Hearings :  Pages  2561-2566. 

Witness:  Mr.  John  H.  Kirby,  president  of  the  Southern  Tariff 
Association.  Houston,  Tex. 

Remarks. — The  Southern  Tariff  Association  grew  largely  out  of 
the  distress  of  the  agricultural  elements  of  the  South  under  the  ap- 
plication of  the  new  doctrine  of  free  raw  materials. 

The  cotton  farmer  in  the  South  found,  in  1920,  that  his  cotton 
seed  had  undergone  a  frightful  shrinkage,  amounting  to  about 
$300.000.000.  partly  because  of  the  deflation  policy  of  the  Federal 
reserve  bank  but  mostly  because  of  free  importation  of  oriental  vege- 
table oils.  Largely  from  the  same  cause,  the  value  of  the  peanut  crop 
dropped  in  the  same  year  from  $100.000.000  to  less  than  $10,000,000. 
Southern  poultry  producers,  who  enjoyed  some  prosperity  prior  to 
1920,  found  themselves  unable  to  keep  their  hens,  largely  because  of 
free  imports  from  China. 

Texas  wool  growers  were  unable  to  sell  their  spring  and  fall  clips 
because  of  free  imports  of  Argentine  and  Australian  wool. 

Texas  cattle  raisers  found  that  meat  values  shrunk  because  of  the 
free  importation  of  cheaply  produced  Argentine  meats ;  freight  from 
Argentina  is  less  than  that  from  Fort  Worth  to  the  principal  Ameri- 
can markets.  Free  imports  of  hides  have  made  it  unprofitable  to 
skin  an  animal,  and  imports  of  mutton  have  destroyed  the  market  for 
American  sheep. 

For  these  reasons,  the  association  has  been  organized  to  ask  for 
southern  industries  equal  tariff  treatment  with  that  accorded  indus- 
tries in  other  sections. 

Panic  and  distress  have  followed  the  enactment  of  every  low 
tariff.  The  business  men  of  the  South  are  behind  the  policy  of  pro- 
tection. 

Hearings:  Pages  2343-2346. 

Witness:  Mr.  Charles  De  B.  Claiborne,  of  Xew  Orleans,  La.. 
representing  southern  and  national  banking  interests. 

The  witness  appeared  as  a  banker  to  confirm  the  statement  that, 
irrespective  of  any  showing  at  the  polls,  the  overwhelming  number 
of  banks  in  the  South  favor  protection.  By  this,  no  halfway  meas- 
ures are  meant:  there  is  no  use  in  a  duty  that  will  barely  permit 
populations  to  live.  Examples  supporting  this  thesis  were  given  by 
the  witness. 

The  duty  on  sugar  in  the  past  has  never  been  sufficient,  no  matter 
what  statisticians  or  experts  or  anybody  else  may  have  to  say  on  the 
subject.  People  are  heard  saying  that  1.60  cents  duty  against  Cuba 
is  enough  on  sugar,  but  it  is  at  least  doubtful  whether  such  people 
are  called  upon  to  lend  money  on  that  assumption.  The  necessary 
margin  must  exist  if  money  is  to  be  put  out. 

Nor  are  these  conditions  confined  to  sugar.  Bankers  know  that 
there  is  no  hope  for  success  unless  ^sugar,  cotton,  wheat,  corn,  and 
every  ether  commodity  are  on  their  feet. 

The  witness  feels  that  this  country  is  going  too  far  with  the  idea 
that  its  mission  is  to  help  out  the  entire  world  and  regards  this  mani- 
festation as  simply  national  vanity  or  some  type  of  egotism.  The 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  299 

present  need  is  to  save  this  country,  but  assistance  must  be  given 
along  intelligent  lines,  this  being  no  time  to  compromise  or  to 
equivocate. 

Hearings:  Pages  2346-2348. 

Witness :  Mr.  Henry  N.  Pharr,  Olivier,  La. 

The  witness  indorses  the  statements  of  Mr.  Claiborne  (supra)  as 
well  as  the  presentation  made  a  few  weeks  ago  by  other  representa- 
tives from  the  State  of  Louisiana. 

It  is  unfortunate  that  the  sugar  industry  has  been  the  football  of 
politics;  nobody  has  known  for  any  length  of  time  in  advance  what 
the  future  held  in  store  for  him  on  tariff  questions.  The  Louisiana 
sugar  industry  can  not  prosper  without  a  sufficiently  high  tariff; 
2|  cents  against  all  sugars  except  Cuban  and  2  cents  against  Cuban 
would  insure  a  slight  degree  of  prosperity.  The  sugar  industry  of 
the  world  owes  a  debt  to  Louisiana,  and  the  good  work  already  done 
bv  way  of  education  and  management  ought  not  to  be  interrupted. 
The  domestic  sugar  industry  is  absolutely  essential  for  the  protection 
of  the  American  consumer.  Its  destruction  means  placing  the 
American  consumer  absolutely  at  the  mercy  of  the  refiners.  Both 
the  Cuban  and  the  American  industries  should  continue,  the  differ- 
ence lying  in  the  fact  that  the  former  will  continue  despite  any  legis- 
lation that  may  be  enacted. 

The  witness  does  not  believe  that  funds  for  the  1922  crop  will  be 
forthcoming  in  the  absence  of  adequate  protection  for  sugar. 

PARAGRAPHS  710,  719,  720,  721,  726,  738,  743,  754,  755,  758,  763,  767, 
770,  AND  773. 

Hearings:  Pages  2567-2592. 

Witness :  Mr.  L.  J.  Scaramelli,  representing  the  Italian  Chamber 
of  Commerce  of  New  York. 


Costs  and  selling  prices. — Domestic  Swiss  sells  at  from  25  to  42 
cents  per  pound,  cheese  selling  at  the  latter  price  being  equal  in 
quality  to  that  of  the  imported  selling  at  72  cents.  Roman  cheese 
sells  at  63  cents. 

OomparcibUfoy. — Roman  cheese,  not  successfully  made  in  this 
country,  is  especially  desired  by  the  Italian  immigrant  who  has  a 
taste  for  that  particular  kind. 

Kates  suggested. — The  chamber  desires  a  specific  rate  of  5  or  not 
more  than  6  cents  per  pound.  An  ad  valorem  rate  is  particularly 
objectionable  in  the  case  of  cheese  because  of  the  difficulty  of 
determining  values  of  the  many  varieties.  Such  a  rate  would 
penalize  the  honest  importer. 


Costs  and  selling  prices. — Prices  have  fluctuated  greatly.  During 
the  hot  spell  last  summer,  in  the  absence  of  an  adequate  foreign 
supply — discouraged  by  the  high  duty — wholesale  prices  went  to 
$12  and  $15  per  box,  shortly  afterwards  falling  to  $3. 

Rates  suggested. — One  cent  per  pound,  or  no  higher  than  1|  cents 
per  pound. 


300  DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456. 

Remarks. — Importation  should  be  encouraged,  under  a  reason- 
able tariff,  for  the  protection  of  consumers.  Scarcity  would  be  espe- 
cially- acute  in  the  event  of  crop  failure  in  California. 

Prior  to  the  war  about  2,000,000,  out  of  a  total  consumption  of 
5,000,000  boxes,  came  from  Italy. 

The  seasonal  average  wholesale  price  of  Italian  lemons  in  New 
York  is  $4.08  per  box  against  an  average  selling  price  for  California 
lemons,  for  the  last  16  years,  of  $3.92. 

The  high  freight  rate  of  $1.50  per  box  from  California  to  the 
East  has  been  largely  overcome  by  transportation  through  the  Canal 
at  65  cents.  There  is  a  good  chance  for  further  reductions. 


Costs  and  selling  prices. — California  walnuts  sell  at  a  considerable 
premium  over  the  imported. 

Rates  suggested. — The  chamber  recommends  that  the  rates  of  2 
and  4  cents  per  pound  on  unshelled  and  shelled  walnuts  be  retained 
or,  at  least,  not  be  made  higher  than  3  and  5  cents,  the  duties  under 
the  Payne-Aldrich  Act. 

Remarks. — The  industry  has  greatly  prospered  under  the  present 
duty,  production  increasing  from  9,600  tons  in  1910  to  28,100  tons  in 
1919,  i.  e.,  at  a  much  faster  rate  than  imports. 

CHKKRIKS  IN   BRINE. 

Rates  suggested. — If  it  is  not  deemed  possible  to  return  them  to 
the  free  list,  they  should  be  assesssd  no  more  than  the  proposed  1£ 
cents  per  pound. 

Remarks. — Cherries  in  brine  are  raw  material  of  confectioners  and 
bakers.  The  variety  imported  are  smaller  than  the  domestic  and 
can  be  used  to  better  advantage.  Very  few  of  the  smaller  size  are 
produced  here. 

FILBERTS. 

Rates  suggested. — Two  cents  per  pound  for  unshelled  filberts  and 
4  cents  for  shelled. 

Remarks. — Filberts  are  not  produced  in  this  country  commercially ; 
experience  has  shown  the  present  rates  to  be  best  for  revenue  pur- 
poses. 

TOMATO   PASTE   OR    SAUCE. 

Costs  and  selling  prices. — Before  the  war  domestic  tomato  sauce 
sold  at  $4  per  case  and  imported  for  $8.  During  the  war  the  im- 
ported sold  at  $24  while  the  price  of  the  domestic  was  $12  to  $18. 
The  difference  is  due  to  the  lack  in  the  domestic  product  of  the  high 
flavor,  nourishing  qualities,  and  color  of  the  imported. 

Rates  suggested. — One  cent  per  pound. 

CANNED   TOMATOES. 

Rates  suggested. — One-half  cent  per  pound,  which  is  equivalent  to 
the  proposed  10  per  cent  ad  valorem  rate. 

Remarks. — The  imported  Italian  tomato  is  a  special  egg  or  pear- 
shaped  variety,  not  canned  here.  It  is  never  imported  in  quantity 
seriously  affecting  the  enormous  domestic  pack. 


DIGEST   OF   TAEIFF   HEARINGS,   H.    E.    74-56.  301 

ARTICHOKES,    PEPPERS,    AND    OTHER    PRESERVED    CANNED    VEGETABLES. 

Rates  suggested. — These  are  not  successfully  canned  in  any  quan- 
tity in  the  United  States  and  should  bear  1  cent  per  pound. 

PRESERVED   FISH. 

Rates  suggested. — Most  of  the  kinds  of  preserved  fish  imported  are 
either  not  found  or  not  produced  in  quantitj"  in  the  United  States. 
The  chamber  recommends  2£  cents  per  pound  duty  on  fish  in  oil,  1£ 
cents  per  pound  for  fish  in  brine,  except  salted  sardines  or  sardelles; 
on  the  latter,  which  is  a  cheap  variety  of  fish  not  produced  in  this 
country,  1  cent  per  pound. 

PEAS   AND   BEANS,   PREPARED   AND  PRESERVED. 

Rates  suggested. — The  Fordney  bill  raises  the  duty  on  these  com- 
modities from  1  to  2  cents  per  pound,  which  the  chamber  considers  ex- 
cessive because  there  is  no  question  that  prepared  vegetables  can  be 
packed  as  cheaply  here  as  in  any  country. 


Rates  suggested. — If  it  is  not  possible  to  maintain  the  present  rates 
of  3  cents  per  pound  on  unshelled  and  4  cents  on  shelled,  the  duties 
should  not  be  more  than  4  and  6  cents  respectively. 

Remarks. — The  industry  in  California  has  grown  considerably 
under  the  present  tariff.  There  is  no  wide  spread  between  cost  of 
production  here  and  abroad.  Labor-saving  machinery  is  used  in  till- 
age and  spraying.  The  alleged  disproportion  between  the  duties  on 
shelled  and  unshelled  almonds  is  justified  because  the  shelled  nuts  are 
a  necessary  raw  material  of  the  candy  trade  and  there  is  no  fear  of 
competition  to,  domestic  production  from  imported  shelled  almonds. 

MACARONI,   VERMICELLI,   AND    SIMILAR  PREPARATIONS. 

Costs  and  selling  prices. — The  present  selling  price  of  imported 
macaroni  is  $2.50  per  box,  compared  with  $1.87  for  domestic.  Even 
before  the  war  Italian  macaroni  commanded  a  premium  of  1  cent  per 
pound. 

Comparability. — Domestic  macaroni  now  compares  very  favorably 
with  imported,  especially  at  the  present  time,  when  it  is  made  entirely 
of  semolina,  while  Italian  macaroni  is  not.  Some,  however,  still 
prefer  the  imported  product. 

Rates  suggested. — One  cent  per  pound  or  at  any  rate  not  more  than 
1|  cents. 

Remarks. — At  present  the  domestic  manufacturer  is  master  of  the 
domestic  market  and  is  looking  toward  an  export  trade. 

The  industry  has  greatly  grown  a/id  prospered  during  the  war. 

PARAGRAPH  701. — CATTLE. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Col.  Ike  T.  Pryor,  representing  the  American  National  Live  Stock  Asso- 
ciation, San  Antonio,  Tex. 


302  DIGEST   OF   TARIFF   HEARINGS,    H.   R.   7456. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES — Continued. 

Mr.   Samuel  H.  Cowan,   representing  the  American  National  Live   Stock 

Association,  Fort  Worth,  Tex. 
Mr.  J.  H.  Mercer,  representing  the  Kansas  Live  Stock  Association,  Topeka, 

Kans. 
Mr.  E.  B.  Spiller,  representing  the  Texas  and  Southwestern  Cattle  Raisers' 

Association,  Fort  Worth,  Tex. 
Mr.  George  W.  Armstrong,  representing  himself  and  other  cattlemen,  Fort 

Worth,  Tex. 

FAVORING  LOWER  DUTIES  : 

Mr.  Charles  E.  Wiswall,  representing  the  Association  of  American  Cattle- 
men in  Mexico. 

Hearings :  Pages  264T-2650,  2685-2690. 

Witness :  Col.  Ike  T.  Pry  or,  representing  the  American  Live  Stock 
Association. 

Costs  and  selling  prices. — Wages  paid  in  competing  countries  are 
much  lower  than  in  the  United  States.  In  Mexico  they  are  $7.50 
per  month  as  compared  with  $30  a  month  in  Arizona.  Farm  laborers 
in  Argentina  receive  $10  to  $20  per  month  and  board.  Prices  have 
so  declined  that  T  cents  per  pound  live  weight  now  looks  as  good 
as  15  cents  -in  the  spring  of  1919. 

Size  of  industry. — Argentina,  Uruguay,  Brazil,  and  Australia, 
with  a  total  population  of  41,176,000,  have  91,342,000  cattle  as  com- 
pared with  the  United  States  having  100,000,000  people  and  67.866,000 
cattle. 

Rates  suggested. — Twenty  per  cent  ad  valorem  on  cattle  hides,  all 
live  stock,  all  fresh  or  prepared  meats;  the  last  named  duty  to  be 
subject  to  a  minimum  of  4  cents  per  pound. 

Remarks. — The  duty  on  live  stock  and  live-stock  products  should 
be  high  enough  to  cover  the  maximum  domestic  cost  of  production 
compared  With  foreign  costs.  With  encouragement  to  do  it,  this 
country  could  easily  produce  100,000,000  cattle. 

Producers  in  competing  countries,  besides  paying*  lower  wages, 
still  have  large  tracts  of  free  grazing  land  and  pasture  charges  are 
much  lower  than  here. 

In  1919  and  1920  over  3,000  carloads  of  cattle  and  10,000  carloads 
of  mutton  and  lamb  were  imported.  If  this  had  been  produced  in 
the  United  States,  not  only  American  producers  but  everyone  en- 
gaged in  the  handling  would  have  been  benefited. 

Hearings :  Pages  2606-2612. 

Witness :  Mr.  Samuel  H.  Cowan,  representing  the  American  Live 
Stock  Association. 

Rates  suggested. — On  hides,  20  per  cent  ad  valorem ;  on  live  stock, 
on  the  basis  of  20  per  cent  ad  valorem ;  on  fresh  and  prepared  meats, 
20  per  cent  ad  valorem  subject  to  a  minimum  of  4  cents  per  pound. 

Remarks. — Mr.  Cowan  submitted  for  reprinting  an  argument  for 
a  duty  on  hides  presented  to  the  Ways  and  Means  Committee  in  1908; 
he  also  submitted  a  brief  of  the  American  National  Live  Stock  Asso- 
ciation before  the  present  Ways  and  Means  Committee,  favoring  a 
duty  on  hides  and  on  meats;  also  a  statement  favoring  duties  on  meat 

Eroducts  by  Col.  Ike  T.  Pryor,  representing  the  American  National 
ive  Stock  Association,  etc.;  finally,  statistical  memoranda  relating 
to  the  production  and  trade  in  live  stock  and  live-stock  products. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  303 

ABSTRACT  OF   ARGUMENTS    IN   FAVOR  OF   A  DUTY   ON   HIDES. 

1.  The  contention  that  the  stockman  would  not  benefit  from  a  duty 
on  hides  is  invalid,  since  there  is  real  competition  for  hides  and  the 
value  of  the  hide  (in  normal  times  13  to  15^  per  cent  of  the  gross 
value  of  the  animal)  is  taken  into  consideration  by  buyers. 

2.  Compared  with  the  great  benefit  to  producers,  the  duty  on  hides 
on  a  pair  of  shoes  would  be  insignificant.    Assuming  that  the  whole 
amount  would  be  passed  on  to  the  consumer,  it  would  amount  to  from 
2  to  4-i  cents  per  pair  of  shoes. 

3.  Putting  hides  on  the  free  list  in  1909  did  not  result  in  reduced 
prices  to  consumers  of  shoes,  traveling  bags,  harness,  etc. 

4.  A  20  per  cent  duty  on  hides  would  do  something  toward  aiding 
the  producers  to  recover  from  the  frightful  depression  of  the  last 
few  years. 

5.  A  duty  on  hides  would  yield  considerable  revenue ;  a  15  per  cent 
duty  since  "1910  would  have  averaged  about  $13,000,000  annually. 

6!  The  claim  of  the  leather  manufacturers  and  independent  tan- 
ners that  the  packers  control  the  supply  of  domestic  hides  is  not 
borne  out  by  the  figures.  If  it  were  true,  the  remedy  should  be  sought 
by  changing  home  conditions  rather  than  by  making  hides  free. 

7.  In  1919  the  value  of  leather  manufactures  exported  at  least 
equaled  the  value  of  imports  of  hides. 

8.  The  same  arguments  apply  in  favor  of  a  duty  on  sheep  pelts. 

ARGUMENTS  IN  FAVOR  OF  A  DUTY  ON  CATTLE  AND  MEAT  PRODUCTS. 

1.  The  cost  of  production  of  beef  and  mutton  is  enormously  greater 
here  than  in  other  surplus-producing  countries. 

2.  Free  competition  with  these  countries  means  increased  imports, 
wholly  at  the  will  of  the  American  packers,  and  the  consumer  will 
become  dependent  on  foreign  production.     Only  the  most  favorably 
situated  domestic  producer  could  remain  in  business. 

3.  A  review  of  prices  since  1910  indicates  that  a  duty  on  foodstuffs 
is  not  borne  by  the  consumer.     Retail  price  does  not  necessarily  fol- 
low the  wholesale  price. 

4.  It    is    an    alarming    fact   to    live-stock    producers    that    while 
throughout  the  war  there  was  a  great  export  market  and  imports 
were  kept  out.  immediately  thereafter  exports  decreased  and  im- 
ports increased,  so  that  imports  again  exceed  exports. 

5.  Other  surplus-producing  countries  have  a  much  larger  number 
of  cattle  and  sheep  per  1,000  population  than  has  the  United  States. 

6.  Immediately  after  the  passage  of  the  Underwood  bill  large 
quantities  of  frozen  beef  and  mutton  began  to  be  diverted  from 
Europe  to  this  country.     This  movement  was  halted  only  by  the 
war. 

7.  Recent  heavy  imports  of  mutton  and  lamb  afford  an  illustration 
of  the  difference  between  an  imported  and  a  domestic  meat  supply. 
In  the  latter  case,  not  only  is  the  American  producer  benefited,  but, 
in  addition  to  the  railroads'  receipts  for  freight,  the  charges  for  bed- 
ding the  cars,  feed,  yardage,  attendance,  war  tax,  and  commission  are 
distributed  among  the  various  domestic  interests. 

8.  There  is  no  millionaire  farmer.     The  farmer  furnishes  the  basic 
raw  materials  for  the  manufacturing  industries  and  ought  to  receive 
equal  consideration  with  them  when  it  comes  to  fixing  duties. 


304  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    74-56. 

Hearings :  Pages  2674-2683. 

Witness :  Mr.  J.  H.  Mercer,  representing  the  Kansas  Live  St6*ck 
Association,  Topeka,  Kans.  * 

Costs  and  selling  prices. — Since  the  beginning  of  1919  there  is  no 
farm  product  which  has  not  depreciated  more  than  one-half.  To 
produce  a  three-year-old  steer  costs  $120  to  $135  per  head.  During 
1918  beef  steers  were  selling  for  $16  to  $18  per  hundred,  but  for  the 
last  10  to  12  months  at  from  $6  to  $9. 

Remarks. — As  prices  of  things  the  farmer  has  to  buy  have  not  de- 
creased like  the  prices  of  farm  products,  the  farmer  has  been  left  in 
a  desperate  situation.  The  time  has  come  when  every  article  pro- 
duced on  the  farm  should  be  protected  to  some  amount.  Because  of 
the  tremendous  spread  between  wholesale  and  retail  prices,  such  pro- 
tection would  not  mean  higher  prices  to  the  consumer. 

Hearings :  Pages  2683-2685. 

Witness :  Mr.  E.  B.  Spiller,  representing  the  Texas  and  Southwest- 
ern Cattle  Raisers'  Association. 

Remarks. — Every  cattle  producer  in  this  country  has  felt  the  effects 
of  foreign  competition  and  wants  the  protection  of  duties  on  dressed 
meat  and  hides.  With  the  disappearance  of  the  free  range,  costs 
have  increased  and  protection  has  become  more  necessary. 

Hearings :  Pages  2691-2700. 

Witness:  Mr.  George  W.  Armstrong,  Fort  Worth,  Tex.,  repre- 
senting himself  and  other  cattlemen. 

Costs  and  selling  prices. — Cattle  can  be  raised  in  Colombia  for  2 
or  3  cents  per  pound,  while  it  is  doubtful  if  beef  can  be  produced 
anywhere  in  this  country  for  7  cents. 

Remarks. — Land  is  very  cheap  in  Colombia,  and  the  tall  Para 
grass  is  so  luxuriant  that  there  is  no  difficulty  in  fattening  cattle. 
Cattle  are  infected  with  rinderpest  and  could  not  be  brought  into 
this  country  on  the  hoof.  There  were  no  packing  plants  in  Colom- 
bia in  1915,  although  some  were  proposed;  when  built,  that  country 
will  be  a  large  source  of  supply  for  beef. 

The  American  packers  dominate  the  beef  business  in  other  coun- 
tries and  so  control  imports.  A  duty  on  beef  would  restrict  their 
power.  The  Government  will  have  to  go  farther  than  the  tariff  to 
save  the  cattle  business. 

There  have  been  three  calf-killing  years  on  the  Forth  Worth 
market,  caused  by  drought  and  financial  stringency.  Within  two 
years  the  country' will  have  to  import  beef  and  will  be  at  the  mercy 
of  the  foreign  producer. 

The  witness  advocates  letting  the  packers  go  into  the  retail  meat 
business. 

Hearings :  Pages  2594-2606. 

Witness:  Mr.  Charles  E.  Wiswall.  representing  the  Cananea  Cattle 
Co.,  Cananea,  Sonona,  Mexico,  and  the  Association  of  American 
Cattlemen  in  Mexico. 

Costs  and  selling  prices. — In  June,  1921.  the  Cananea  Co.  shipped 
1.010  yearlings,  paid  $3.50  per  head  Mexican  export  tax,  $3.90  per 
head  duty  and  received  $19  per  head  or  $11.60  net  after  taxes  had 
been  paid.  Twelve  months  before  the  company  received  $39  net  for 
the  same  class  of  cattle.  In  1920  the  average  'cost  of  yearlings  was 
$20  per  head. 


DIGEST  OF   TARIFF    HEARINGS,   H.    R.    74-56. 


305 


/Size  of  industry. — There  are  about  25  men  in  the  association,  who 
own  8,500.000  acres  of  land  and  95,000  head  of  cattle. 

Rates  suggested. — The  witness  favors  the  proposed  division  at 
2  years  because  the  age  can  be  accurately  determined  by  the  teeth. 
He  favors  a  lower  rate  on  cattle  under  2  years  old  since  they  are 
mostly  stockers  and  feeders  which  have  to  be  finished  in  the  United 
States. 

Remarks. — The  administration  of  the  duty  on  live  cattle  in  the  act 
of  1909  gave  much  trouble,  to  importers  and  customs  officials  alike, 
in  determining  the  age  and  value  of  animals.  After  the  passage  of 
the  act  of  1913  imports  greatly  increased  but  have  fallen  off  since 
the  emergency  act  went  into  effect. 

The  witness  thinks  that  light  cattle  ought  to  be  let  in  at  a  lower 
rate,  because  there  is  no  overproduction  of  cattle  in  the  United 
States.  Imports  from  Mexico  in  the  next  few  years  will  be  limited 
in  any  case,  because  of  that  country's  depleted  stocks.  The  break 
in  cattle  prices  in  1919,  1920,  and  1921  was  caused  by  bad  credit 
conditions  which  forced  liquidations.  Imports,  as  compared  with 
market  receipts,  are  too  small  to  affect  the  general  price  level. 

PARAGRAPH  701. — TALLOW. 


WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Prank  M.  Barnes,  representing  Proctor  &  Gamble  Co.,  Cincinnati.  Ohio. 
The  N.  K.  Fairbanks  Co.,  Milwaukee,  Wis.     (Brief.) 

Hearings :  Pages  2701-2711. 

Witness :  Mr.  Frank  M.  Barnes,  representing  Proctor  &  Gamble  Co. 

Costs  and  selling  prices. — 

Market  prices  on  inedible  tallows,  1921   (per  100  pounds). 


January. 

February 

March,   j    April. 

May. 

June. 

July. 

Citv  special  tallow  
Prime  city  tallow 

16.15 
5.33 

$5.61 
4.69 

$5.09          $5.00 
4.10            4.00 

$5.22 
4.00 

$4.80 
3.&i 

54.51 
3.51 

Rates  suggested. — The  soap  manufacturers  ask  that  tallow  remain 
on  the  free  list. 

Remarks. — Tallow  makes  up  about  25  per  cent  of  the  raw  material 
of  the  soap  industry.  In  1913,  the  price  of  white  laundry  soap  was 
6.4  cents  per  pound;  it  went  up  to  12^  cents  and  is  now  7^  cents. 
Yellow  laundry  soap  in  1913  sold  at  7^  cents;  at  the  peak  of  prices 
it  was  10  cents,  and  is  now  6  cents.  The  soap  maker  is  interested 
only  in  inedible  tallow,  of  which  the  average  steer  will  produce  7 
to  8  pounds.  One-half  cent  increase  in  price  would  mean  only  3J 
cents  on  the  price  of  a  steer.  Practically  all  imported  tallow  is 
inedible.  Two-thirds  of  the  inedible  tallow  rendered  is  made  from 
city  butchers'  scraps.  Renderers  are  subsidiaries  of  Chicago  packers. 
The  witness  claims  that  a  duty  of  one-half  cent  per  pound  on  tallow 
would  be  prohibitive.  Under  that  duty  in  the  act  of  1909  imports 
were  very  small. 


306  DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456. 

Witness:  The  N.  K.  Fairbanks  Co.,  Milwaukee.  Wis.  (Brief; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — At  the  1920  rate  of  import,  the  proposed 
duty  of  one-half  cent  per  pound  on  tallow  would  cost  the  American 
public  $1,420,000  annually,  but  as  an  exportable  surplus  of  tallow 
is  produced,  part  of  this  would  probably  be  substituted  for  that  now 
imported,  with  a  corresponding  decrease  in  revenue  and  in  the 
amount  exported. 

PARAGRAPH  706. — SAUSAGE  CASINGS. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

William  Trostal  &  Sons.  Scranton,  Pa.'  (Brief;  no  appearance  at  hear- 
ings.) 

Rates  suggested. — Sausage  casings  to  remain  on  the  free  list. 
Sausage  casings  have  been  free  of  duty  for  more  than  50  years  and 
the  entire  sausage  industry  depends  on  having  this  raw  material 
free.  A  duty  on  casings  would  not  benefit  the  farmer,  because  the 
intestines  in  the  raw  state  are  an  insignificant  part  of  the  value  of 
the  animal. 

Remarks. — Imported  sheep  casings  are  necessary  for  Frankfurter 
sausages;  domestic  sheep  casings  are  inferior  and  insufficient  in 
quantity.  Sausage  casings  produced  in  the  United  States,  chiefly 
hog  and  beef  casings,  require  no  protection,  since  there  is  a  large 
exportable  surplus  of  them.  A  duty  on  casings  would  mean  an 
addition  of  about  one-half  cent  per  pound  on  the  cost  of  producing 
sausage,  equivalent  to  1  to  2  cents  per  pound  to  the  consumer. 
Sausage  is  the  meat  of  the  poorer  classes — those  least  able  to  pay  an 
increased  price  caused  by  a  duty.  As  substantial  quantities  of  sheep 
casings  are  used  in  the  manufacture  of  surgical  ligatures,  the  pro- 
posed tax  would  burden  every  hospital  in  the  country. 

PARAGRAPHS  707-710. — MILK  AND  MILK  PRODUCTS. 

WITNESSES,  A^STD  INTERESTS  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Brief  presented  by  the  New  England  Dairy  Tariff  Committee,  representing' 
State  dairymen's  associations.  State  granges,  State  agricultural  colleges, 
and  the  New  England  Milk  Producers'  Association. 

Mr.  Charles  D.  Holman,  representing  the  National  Milk  Producers'  Federa- 
tion, 1731  I  Street,  Washington,  D.  C. 

Mr.  George  N.  Putnam,  representing  the  New  Hampshire  State  Farm  Bu- 
reau Federation,  Concord,  N.  H. 

Brief  of  the  National  Milk  Producers'  Federation. 

Mr.  John  A.  Ness,  representing  the  Maine  Dairymen's  Association,  Au- 
burn. Me. 

Mr.  James  A.  Lesch,  representing  the  Bennington  County  Farm  Dairy  As- 
sociation, Pawlet,  Vt. 

Mr.  W.  H.  Bronson,  representing  the  New  England  Milk  Producers'  Asso- 
ciation, Boston,  Mass. 

Brief  of  Mr.  W.  W.  Hovey,  general  manager  the  Dairymen's  League  (Inc.) 
and  the  Dairymen's  League  Cooperative  Association  (Inc.),  Utica,  N.  Y. 

Brief  of  Mr.  Gray  Silver,  American  Farm  Bureau  Federation,  Washing- 
ton, D.  C. 

Brief  of  the  Associated  Dairymen  of  California  and  the  California  Central 
Creameries, 

Hon.  Tasker  L.  Oddie,  United  States  Senator  from  Nevada. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  307 

FAVORING  PROPOSED  OR  HIGHER  DUTIES — Continued. 

Mr.  O.  M.  Cainburn,  representing  the  New  England  Dairy  Tariff  Committee. 

Mr.  J.  R.  Morley.  representing  the  Minnesota  Dairy  Association,  Owottona, 
Minn. 

Mr.  A.  M.  Loomis,  representing  the  National  Dairy  Union,  630  Louisiana 
Avenue  NW.,  Washington.  D.  C. 

Mr.  R.  W.  Balderston,  representing  the  Interstate  Milk  Producers'  Asso- 
ciation. 

FAVORING  LOWER  DUTIES  : 

Mr.  Theodore  P.  Grant,  representing  the  Theodore  P.  Grant  Co.,  Boston, 

Mass. 

Mr.  Cornelius  A.  Parker,  representing  the  Cream  Dealers'  Association  of 
New  England,  Boston,  Mass. 

Hearings :  Pages  2782-2800. 

Witness:  The  New  England  Dairy  Tariff  Committee.     (Brief.) 

Costs  and  selling  prices. — The  Quebec  cost  of  production  of  3.7 
per  cent  milk,  delivered  in  Boston,  is  3.45  cents  per  gallon  less  than 
the  New  England  cost.  The  cost  of  36  per  cent  butter-fat  cream  is 
39.40  cents  per  gallon  less,  and  of  butter,  9.97  cents  per  pound  less. 

Size  of  industry. — The  dairy  products  sold  from  New  England 
farms  in  1919  were  valued  at  oVer  $94,000,000. 

Rates  suggested. — For  milk,  3£  cents  per  gallon;  for  cream,  35 
cents  per  gallon ;  for  butter,  10  cents  per  pound. 

Remarks. — The  New  England  farmer  can  supply  New  England's 
needs  in  butter  and  cream.  In  1919,  when  416.000  gallons  of  cream 
were  shipped  from  Canadian  points  to  Boston,  the  butter  produced  by 
New  England  creameries  would  have  produced  4,500,000  gallons  of 
36  per  cent  cream,  or  11  times  the  amount  necessary  to  replace  the 
Canadian  shipments. 

Hearings :  Pages  2745-2751. 

Witness :  Mr.  Charles  D.  Holman,  representing  the  National  Milk 
Producers'  Federation,  1731  I  Street,  Washington,  D.  C. 

Costs  and  selling  prices. — In  April,  1921,  the  cost  of  producing 
100  pounds  of  milk  in  different  sections  of  the  United  States  ranged 
from  $2.53  to  $3.12,  with  an  average  of  $2.80.  Costs  in  Quebec  were 
$2.37  per  100  pounds,  48  cents  below  the  New  England  cost.  The 
cost  of  producing  one  gallon  of  cream  in  Quebec  is  40  cents  below  the 
New  England  figure.  The  cost  of  producing  butter  in  Quebec  is  10 
cents  lower  than  in  New  England,  while  the  cost  in  Denmark  is  12-J 
to  164  cents  lower  than  in  this  country.  Butter  can  be  landed  in  New 
York  from  Denmark  as  cheaply  as  from  Wisconsin. 

Rates  suggested. — Paragraph  707 :  Whole  milk,  sweet  or  sour,  3^ 
cents  per  gallon ;  cream,  sweet  or  sour,  having  not  more  than  20  per 
centum  of  butter  fat.  15  cents  per  gallon,  for  each  additional  5  per 
centum  or  fraction  thereof  of  butter  fat.  5  cents  per  gallon  additional; 
skim  milk,  1  cent  per  gallon;  ice  cream  mixtures,  unfrozen,  having 
not  more  than  15  per  centum  of  butter  fat,  15  cents  per  gallon,  for 
each  additional  5  per  centum  or  fraction  thereof  of  butter  fat,  5  cents 
per  gallon  additional;  frozen,  not  having  more  than  15  per  centum 
of  butter  fat,  9  cents  per  gallon,  for  each  additional  5  per  centum  or 
fraction  thereof  of  butter  fat,  3  cents  per  gallon  additional. 

Paragraph  708 :  Milk,  condensed  or  evaporated.  In  hermetically 
sealed  containers.  unsAveetened,  1  cent  per  pound ;  sweetened,  1^  cents 
per  pound;  all  other,  If  cents  per  pound;  whole  milk  powder,  3£ 
cents  per  pound;  cream  powder,  8  cents  per  pound;  and  skimmed 


308  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

milk  powder,  1-i  cents  per  pound ;  malted  milk  and  compounds  of  or 
substitutes  for  milk  or  cream,  20  per  centum  ad  valorem. 

Paragraph  709 :  Butter,  10  cents  per  pound ;  butter  substitutes,  10 
cents  per  pound. 

Paragraph  710 :  Cheese,  valued  at  less  than  30  cents  per  pound,  5 
cents  per  pound ;  valued  at  30  cents  or  more  per  pound,  25  per  centum 
ad  valorem ;  cheese  substitutes,  5  cents  per  pound ;  lactarene  or  casein, 
4|  cents  per  pound  (this  article  now  appears  on  the  free  list)  ;  all 
other  dairy  products  not  otherwise  provided  for,  20  per  centum  ad 
valorem. 

Remarks. — Mr.  Holman  included  in  his  testimony  "A  preliminary 
report  of  the  United  States  Milk  Producers'  Dairy  Tariff  Committee'" 
and  a  brief  of  the  Associated  Dairymen  (Inc.),  of  California. 

The  United  States,  in  1920,  changed  from  a  net  exporting  country 
to  a  net  importing  country  in  its  butter  trade.  Protection  is  needed 
to  save  American  standards  of  living.  Protection  is  also  requested 
against  increasing  imports  of  vegetable  oils  used  in  butter  substitutes 
and  thus  displacing  butter. 

NOTE. — See  also  pp.  2800-2806  of  Schedule  7  (Paragraph  1598 — Casein.) 

Hearings.  Pages  2756-2763. 

Witness:  Mr.  George  M.  Putnam,  representing  the  New  Hamp- 
shire State  Farm  Bureau  Federation. 

Costs  and  selling  prices. — The  average  cost  of  producing  100 
pounds  of  milk  by  12  herds  in  New  Hampshire,  1920-21.  was  $3.87. 
The  average  selling  price  was  $3.25,  a  loss  of  62  cents  per  hundred. 

Size  of  the  industry. — Dairying  is  the  most  important  farm  in- 
dustry in  New  England. 

Rates  suggested. — Ten  cents  per  pound  on  butter,  and  equivalent 
duties,  based  on  butter- fat  content,  on  milk  and  other  milk  products. 

Remarks. — In  the  last  10  years  the  average  of  improved  land  in 
farms  in  New  England  has  decreased.  Many  farms  have  been  aban- 
doned, while  the  mortgage  debt  has  increased  greatly.  These  are 
indications  of  a  declining  agriculture. 

Hearings :  Pages  2753-2756. 

Witness:  National  Milk  Producers'  Federation.  (Brief.) 
Remarks. — This  association  of  over  200,000  members  protests 
against  any  attempt  to  place  upon  the  free  list,  or  near  free  list,  the 
products  of  the  farmer  in  order  to  gain  trade  from  protected  indus- 
tries. The  farmer,  especially  the  dairy  farmer,  stands  in  great  need 
of 'protection.  With  no  allowance  for  investment,  farmers  are  not 
receiving  this  year  a  dollar  a  day  for  their  labor.  It  is  this  paralysis 
of  the  home  market,  caused  by  the  falling  away  of  effective  farm  de- 
mand, that  has  closed  the  factories  of  the  country.  The  association 
asks  a  duty  on  milk  and  milk  products,  and  on  competing  vegetable 
oils  and  other  cheap  fats,  high  enough  to  protect  the  dairymen  in 
their  most  essential  field  of  toil. 

Hearings :  Pages  2763-2767. 

Witness:  Mr.  John  A.  Ness,  representing  the  Maine  Dairymen's 
Association,  Auburn,  Me. 

Costs  and  selling  prices. — The  average  cost  per  100  pounds  of  milk, 
the  product  of  17  Maine  herds  in  1920-21,  was  $3.76,  while  the 
selling  price  was  $3.08.  Detailed  figures,  covering  all  items,  includ- 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  309 

ing  depreciation  in  the  value  of  the  cows,  showed  a  net  loss  of  $38.21 
per  cow. 

Rates  suggested. — The  witness  supports  the  schedule  of  rates  for 
dairy  products  proposed  by  the  New  England  Tariff  Committee. 

Hearings:  Pages  2767-2775. 

Witness :  Mr.  James  A.  Leach,  representing  Bennington  County 
Farm  Dairy  Association. 

Costs  and  selling  prices. — In  the  year  ending  July,  1921,  the  wit- 
ness had  a  herd  of  43  Holstein  cows.  The  total  receipts  were  $7,898, 
while  the  total  expenditures  were  $9,904.  Feed  raised  on  the  farm  is 
charged  at  market  prices.  The  present  price  paid  for  3.7  butter-fat 
milk  at  his  shipping  station  is  $2.855  per  100  pounds  (about  6  cents 
per  quart). 

Remarks. — Canada  and  Denmark  are  the  main  sources  of  foreign 
competition.  The  French  Canadians  raise  large  families,  and  women 
and  children  work  in  the  dairies. 

Hearings :  Pages  2775-2800. 

Witness:  Mr.  W.  H.  Bronson,  representing  the  New  England  Milk 
Producers'  Association,  Boston,  Mass. 

Costs  and  selling  prices. — The  average  cost-  of  producing  100 
pounds  of  milk  in  the  New  England  States  is  $2.93  ($0.252  per  gal- 
lon) compared  with  $2.45  ($0.211  per  gallon)  in  Quebec.  Based  on 
milk  costs,  the  cost  of  producing  1  gallon  of  cream  in  New  England 
would  be  $2.04  and  of  1  pound  of  butter  $0.55,  compared  with  $1.64 
and  $0.45,  respectively,  for  Quebec.  The  advantage  in  transportation 
costs  offsets  only  a  small  fraction  of  the  difference  in  costs.  The 
difference  favoring  the  center  of  production  in  New  England,  as 
compared  with  Quebec,  is  $0.0065  per  gallon  on  milk,  $0.006  per  gal- 
lon on  cream,  and  $0.0003  per  pound  on  butter.  The  weighted  aver- 
age cost  of  keeping  a  cow  in  the  United  States  is  135  per  cent  of  that 
in  Denmark. 

.Size  of  the  industry. — Dairying  provides  the  main  source  of  -in- 
come for  the  New  England  farmer.  In  1919  the  sale  of  dairy  prod- 
ucts amounted  to  $94,000,000. 

Rates  suggested. — This  association  favors  the  same  schedule  of 
rates  as  Mr.  Holrnan.  (Hearings,  p.  2747.) 

Remarks. — Under  the  rates  proposed  in  the  Fordney  bill  on  milk 
and  cream,  it  would  pay  to  import  cream  from  Canada  for  man- 
ufacture for  butter  in  the  United  States  rather  than  to  import  butter. 
The  gain  per  gallon  in  shipping  cream  would  be  21  cents. 

Proper  protection  of  dairy  products  would  do  much  to  halt  the 
decline  in  the  number  of  farms  in  the  New  England  States,  which 
has  ranged  from  11  to  24  per  cent  in  the  last  10  years. 

The  standard  of  living  in  competing  sections  in  Quebec  is  lower 
than  in  New  England,  as  is  shown  by  the  far  greater  proportion 
of  women  and  children  doing  milking. 

In  1919  Canada  shipped  about  1  per  cent  of  Boston's  milk  supply 
and  12  per  cent  of  the  cream,  the  largest  shipments  of  cream  coming 
in  midsummer. 

Hearings :  Pages  2806-2808. 

Witness :  W.  W.  Hovey,  general  manager,  the  Dairymen's  League 
(Inc.)  and  the  Dairymen's  League  Cooperative  Association   (Inc.), 
Utica,  N.  Y.     (Brief.) 
77134—22 21 


310  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Size  of  industry. — These  two  associations  represent  80,000  actual 
milk  producers  owning  approximately  1,000,000  dairy  cows. 

Rates  suggested. — Whole  milk,  sweet  or  sour,  3^  cents  per  gallon. 

Cream,  sweet  or  sour,  having  not  more  than  20  per  cent  of  butter 
fat,  15  cents  per  gallon;  for  each  additional  5  per  cent  or  fraction 
thereof  of  butter  fat,  5  cents  per  gallon  additional. 

Skim  milk,  1  cent  per  gallon. 

Ice-cream  mixtures,  unfrozen,  having  not  more  than  15  per  cent 
of  butter  fat,  15  cents  per  gallon ;  for  each  additional  5  per  cent  or 
fraction  thereof  of  butter  fat,  5  cents  per  gallon  additional ;  frozen, 
having  not  more  than  15  per  cent  of  butter  fat,  9  cents  per  gallon ; 
for  each  additional  5  per  cent  or  fraction  thereof  of  butter  fat,  3 
cents  per  gallon  additional. 

Milk,  condensed  or  evaporated,  in  hermetically  sealed  containers, 
unsweetened,  1  cent  per  pound;  sweetened,  1^  cents  per  pound;  all 
other,  If  cents  per  pound. 

Whole-milk  powder,  3^  cents  per  pound. 

Cream  powder,  8  cents  per  pound. 

Skimmed-milk  powder,  1£  cents  per  pound. 

Malted  milk  and  compounds  of,  or  substitutes  for  milk  or  cream, 
20  per  cent  ad  valorem. 

Butter,  10  cents  per  pound. 

Butter  substitutes,  10  cents  per  pound. 

Cheese,  valued  at  less  than  30  cents  per  pound,  5  cents  per  pound ; 
valued  at  30  cents  or  more  per  pound,  25  per  cent  ad  valorem. 

Cheese  substitutes,  5  cents  per  pound. 

Lactarene  or  casein,  4J  cents  per  pound. 

Sugar  of  milk,  4|  cents  per  pound. 

All  dairy  products  not  otherwise  provided  for,  20  per  cent  ad 
valorem. 

Remarks. — The  country  is  self-sustaining  in  dairy  products;  im- 
ports are  unnecessary. 

There  are  a  number  of  manufacturing  plants  just  on  this  side  of 
the  border  to  which  Canadian  cream  or  milk  can  be  economically 
transported  for  manufacture.  This  condition  necessitates  the  in- 
creases in  duties  sought  on  milk,  cream,  and  other  products  on  a  basis 
equal  to  that  provided  for  butter. 

Hearings:  Pages  2822-2832. 

Witness :  Mr.  Gray  Silver,  American  Farm  Bureau  Federation. 
(Brief.) 

Size  of  industry. — The  number  of  milk  cows  in  the  United  States 
increased  from  20,625,000  in  1910  to  23,619,000  in  1920,  but  declined 
to  23,321,000  in  1921. 

Rates  suggested. — "  The  Fordney  bill  proposes  1  cent  per  gallon. 
It  may  be  entirely  adequate  in  the  end.  One  cent  on  milk  and  5  cents 
on  cream  would  be  near  enough  equivalent.  Physical  equivalence, 
assuming  40  per  cent  on  cream,  would  make  24.4  cents  per  gallon 
(on  cream)  equal  to  6  cents  per  pound  on  butter."  There  is  more 
purpose  in  the  method  of  physical  equivalents  in  the  case  of  cream 
than  of  whole  milk.  But  cream  will  only  be  shipped  across  the 
border  for  butter  making  when  the  price  of  butter  in  the  United 
States  is  sufficiently  higher  than  the  Canadian  price  to  justify  the 
business.  Even  then,  the  volume  of  business  would  be  small  and- 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  311 

the  dairy  interests  of  the  country  can  not  afford  to  ask  for  the  25 
cents  per  gallon  duty  on  cream  which  would  be  necessary  to  stop  such 
imports. 

"  I  am  of  the  opinion  that  6  cents  per  pound  (on  butter)  is  about 
all  that  is  wise. 

";  The  5-cent  rate  (on  cheese)  is  therefore  satisfactory. 

"  The  Fordney  rates  (on  evaporated  and  condensed  milk)  are  1  and 
14  cents  per  pound.  They  are  satisfactory. 

"  The  Fordney  rates  on  milk  powders  are  based  on  equivalents 
and  in  proportion  to  those  on  condensed  and  evaporated  milk." 

Remarks. — The  billion  pounds  of  milk  imported  into  the  United 
States  in  the  form  of  butter,  cheese,  cream,  etc.,  in  the  fiscal  year 
1921,  is  onh"  1  per  cent  of  the  domestic  production. 

"  There  is  always  a  deficit  of  milk  and  cream  in  the  New  England 
States.  Even  though  much  milk  and  cream  comes  from  Canada, 
prices  are  always  considerably  higher  there  than  in  New  York. 
The  effect  of  a  duty  will  be  to  raise  prices  on  milk  and  cream  to  a 
still  higher  level  in  Boston.  *  *  *  But  the  total  effect  of  the 
Canadian  butter  that  comes  to  the  United  States  is  practically  noth- 
ing so  far  as  price  is  concerned.  It  is  a  case  of  taking  a  cent  or  two 
of  local  advantage  away  from  a  few  Canadian  dairymen  for  the 
sake  of  an  imagined  advantage  to  us." 

Hearings :  Pages  2800-2806. 

Witness :  The  Associated  Dairymen  of  California  and  the  Cali- 
fornia Central  Creameries.  (Supplementary  brief.) 

Costs  and  selling  prices. — The  Northern  California  Milk  Pro- 
ducers' Association 'reported  as  an  average  cost  per  pound  for  skim 
milk  powder,  in  1920,  11.14  cents;  in  1921.  12.81  cents.  The  Cali- 
fornia Central  Creameries'  costs  in  1920  were  11.57  cents  and  in 
1921,  8.59  cents. 

Size  of  industry. — In  the  first  six  months  of  1920,  the  production 
of  skim  milk  was  24,953,000  pounds  compared  with  16,891,000 
pounds  for  the  same  period  in  1920. 

Rates  suggested. — On  skim  milk  powder,  3  cents  per  pound. 

Remarks. — There  are  three  methods  of  utilizing  skim  milk;  (1) 
Feeding  to  hogs  and  other  stock,  (2)  manufacturing  into  skim- 
milk  powder,  and  (3)  manufacturing  into  casein  and  sugar  of 
milk.  The  first  method  is  a  very  wasteful  process. 

Theoretically,  8^  to  9  pouncls  of  skim-milk  powder  should  be 
produced  from  100  pounds  of  milk,  but  in  actual  practice  the  re- 
covery is  from  7  to  8  pounds. 

The  proposed  duty  of  8  cents  per  pound  on  butter  is  equivalent 
to  40  cents  per  100  pounds  on  the  milk  from  which  it  is  produced, 
while  the  combined  duty  on  cream  and  skim  milk  powder  equals 
22.1  cents  per  100  pounds  of  milk. 

Witness :  Hon.  Tasker  L.  Oddie.  United  States  Senator  from  Xe- 
vacla.  (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Milk.  3^  cents  per  gallon;  cream,  35  cents  per 
gallon;  butter,  10  cents  per  pound:  cheese,  5  cents  per  pound;  con- 
densed milk.  2  cents  per  pound:  casein,  5  cents  per  pound. 

Remarks. — Nevada  is  producing  a  relatively  small  surplus  of  but- 
ter, which  is  shipped  to  Sacramento.  The  Sacramento  price  is  de- 


312  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

pendent  on  the  San  Francisco  price,  which  in  turn  fluctuates  with 
the  New  York  price.  The  New  York  price  is  largely  affected  by 
imports  of  Danish  and  other  butter.  There  should  be  an  addition 
to  the  duty  to  make  up  for  the  difference  in  exchange. 

Hearings:  Pages  2832-2840. 

Witness:  Mr.  O.  M.  Camburn,  representing  the  New  England 
Dairy  Tariff  Committee. 

Costs  and  selling  prices. — It  costs  55  cents  per  pound  to  produce 
butter  in  New  England  and  45  cents  in  Quebec.  It  costs  35  per  cent 
more  to  produce  butter  in  New  England  than  in  Denmark.  In  1897, 
when  butter  was  about  20  cents  per  pound,  a  6-cent  duty  was  put  on 
it.  Now  prices  range  from  40  to  50  cents  per  pound. 

Size  of  industry. — In  New  England,  in  1920,  15,750,000  pounds  of 
butter  were  produced,  about  10  per  cent  of  the  consumption.  In  the 
same  year,  the  total  domestic  production  was  1,600.000,000  pounds, 
imports  were  19,857,000  pounds,  and  exports  27,156,000  pounds. 

Comparability. — Danish  butter  is  of  the  very  highest  quality  and 
the  keenest  competition  comes  from  that  country. 

Rates  suggested. — Ten  cents  per  pound  for  butter.  Such  a  rate 
would  be  justified  by  the  difference  between  domestic  and  foreign 
costs;  also,  because  of  the  increase  in  the  price  of  butter,  it  would 
amount  to  no  higher  ad  valorem  than  the  6-cent  rate  in  1897. 

Remarks. — The  shipping  zone  in  Quebec  is  from  280  to  300  miles 
from  Boston,  while  the  center  of  the  source  for  the  New  England 
States  is  the  200-mile  zone.  Boston  cream  dealers  could  get  an  ade- 
quate supply  of  sweet  cream  in  New  "England  and  would  not  have  to 
go  to  Canada  for  it  if  they  would  give  the  dairymen  notice  long 
enough  beforehand. 

Hearings :  Pages  2840-2844. 

Witness:  Mr.  J.  R.  Morley,  representing  the  National  Dairy 
Union,  Minnesota  Dairy  Association. 

Costs  and  selling  prices. — The  average  price  of  92  score  butter 
("extras")  in  1920  was  61  cents;  Danish  butter,  duty  paid,  would 
average  about  the  same.  Demoralization  of  the  New  York  market 
in  June,  1921,  was  caused  by  heavy  importations  from  Denmark  and 
the  price  went  down  to  28  cents. 

Freight  rates  favor  Danish  shippers.  For  example,  the  rate  from 
Denmark  to  New  York  is  $1.15  per  100  pounds  less  than  that  from 
St.  Paul. 

Comparability. — Danish  butter  commands  about  the  same  price  as 
92  score  (high-grade)  domestic. 

Rates  suggested. — The  witness  favors  the  rates  proposed  by  Mr. 
Holman  (p.  2747). 

Remarks. — Canadian  cream  is  not  necessary  for  ice-cream  manu- 
facture ;  domestic  sweet  butter  can  be  easily  substituted.  If  the 
price  of  butter  goes  up,  the  rate  provided  in  the  emergency  tariff 
(6  cents)  would  not  effectively  limit  imports. 

Hearings :  Pages  2845-2857. 

Witness :  Mr.  A.  M.  Loomis,  representing  the  National  Dairy 
Union.  (Brief.) 

Costs  and  selling  prices. — Witness  submits  a  table  of  New  York 
prices  for  1920,  showing  the  effect  of  shipments  of  Danish  butter. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  313 

Size  of  industry. — There  are  24.720.000  dairy  cows  in  the  United 
States  and  7.857  establishments  manufacturing  dairy  products  hav- 
ing a  value  of  over  $1.000.000.000.  Half  of  this  is  the  butter  busi- 
ness of  the  country-. 

Rates  suggested. — Ten  cents  per  pound  on  butter  and  equivalent 
duties  on  other  milk  products. 

Remarks. — The  rate  of  duty  on  butter  should  be  the  basis  of  duties 
on  other  milk  products,  because  the  price  of  butter  is  the  controlling 
factor  in  fixing  the  prices  of  the  other  products.  The  continuance 
of  considerable  imports  of  butter  from  Denmark  after  the  passage 
of  the  emergency  act  shows  that  a  6-cent  duty  is  not  satisfactory 
with  present  price  levels.  The  comparatively  small  shipments  of 
butter  reaching  Xew  York  have  large  results  because  of  the  wide 
influence  of  Xew  York  prices.  A  duty  would  protect  the  market 
from  sudden  fluctuations  caused  by  the'  arrival  of  foreign  consign- 
ments. 

SUPPLEMENTARY    TESTIMONY. 

Hearings :  Pages  2853-2857. 

Witness:  Mr.  "A.  M.  Loomis.  representing  the  National  Dairy 
Union. 

Rates  suggested. — Butter.  10  cents  per  pound. 

Remarks. — The  tariff  is  necessary  to  prevent  a  disaster  to  the  dairy 
interests  such  as  has  already  overtaken  a  large  part  of  the  other 
industries  in  agriculture. 

During  the  period  of  high  winter  prices,  a  6-cent  duty  would 
not  afford  enough  protection.  Imports  are  received  from  the  South- 
ern hemisphere  during  the  winter — the  period  of  chief  production 
in  that  region. 

The  whole  dairy  industry  in  the  United  States  rests  on  the  daily 
price  of  butter  in  Xew  York.  Through  their  effect  on  this  price, 
imports  disproportionately  influence  the  prices  of  dairy  products 
throughout  the  country. 

The  interests  of  both  consumers  and  producers  are  best  served 
by  stabilizing  butter  prices. 

(The  brief  presented  was  previously  printed,  pp.  2845-2853.) 

Hearings :  Pao-es  2SOS-2821. 

Witness:  Mr.  R.  W.  Balderston.  representing  the  Interstate  Milk 
Producers'  Association,  the  Philadelphia  Interstate  Dairy  Coun- 
cil, the  Pennsylvania  State  Dairy  Council,  and  the  Middle 'Atlantic 
Dairy  Tariff  Committee. 

Costs  and  selling  prices. — The  cost  of  transportation  of  butter 
from  Minnesota,  one  of  the  important  butter-producing  States,  to 
the  eastern  markets  is  the  same  as  that  from  Denmark.  The 
average  cost  of  production  of  butter  in  Minnesota  for  the  year 
ending  March  31.  1921,  was  42  cents  per  pound  as  compared  with 
an  average  cost  in  Minnesota  of  56  cents,  the  latter  figure  being 
from  the  State  college  there. 

Rates  suggested. — Witness  favors  the  same  schedule  of  duties  as 
Mr.  Hovey.  (See  pp.  2806-2808.) 

Remarks. — Danish  producers  regard  England  as  their  legitimate 
market  for  bacon  and  butter.  But  Avhen  the  English  market  is 


314  DIGEST   OF   TARIFF    HEARINGS,    H.   R.   745(3. 

in  such  shape  that  they  do  not  want  to  demoralize  it,  they  ship 
their  surplus  to  this  country. 

The  cost  of  collecting  butter  in  Denmark  is  low  because  of  the 
numerous  small  harbors  near  the  farms. 

Hearings:  Pages  2740-2744. 

Witness :  Mr.  T.  P.  Grant,  representing  the  Theodore  P.  Grant  Co. 

Costs  and  setting  pieces. — Since  January  1,  1921,  Canadian  cream 
costs  the  company  more,  on  the  average,  than  New  England  cream. 
Freight  on  Canadian  cream  costs,  at  the  cheapest  rate  to  any  point, 
from  50  to  75  cents  per  can.  Exclusive  of  tariff,  it  costs  $1.50  per 
can  for  hauling  and  icing. 

Size  of  industry. — The  witness's  firm,  wholesale  dealers  in  cream, 
did  a  business  of  about  $750,000  in  1920. 

Rates  suggested. — The  witness  would  assent  to  a  rate  on  a  com- 
mercial cream  pasteurized  in  Canada  of  5  or  6  cents  a  gallon  up  to 
40  per  cent  butter  fat,  and  taxing  the  cream  coming  in  sour  or  sweet 
for  manufacturing  into  butter  at  10  cents. 

Remarks. — Xew  England  dairymen  have  specialized  more  in  but- 
ter and  milk  and  have  not  shipped  so  much  cream.  As  explained 
elsewhere  (p.  2726)  a  10-gallon  jug  contains  82  pounds  of  36  per 
cent  cream  and  29.5  pounds  of  butter  fat,  which  will  make  35.42 
pounds  of  butter. 

Hearings :  Pages  2717-2739. 

AVitness :  Mr.  C.  A.  Parker,  representing  the  Cream  Dealers'  Asso- 
ciation of  New  England. 

Size  of  industry. — In  1915,  seven-eighths  of  the  total  supply  of 
cream  coming  into  the  United  States  from  Canada  came  over  the 
New  England  border.  The  group  represented  by  the  witness  are 
dealers  specializing  in  the  sale  of  this  cream. 

Rates  suggested. — While  retaining  the  rate  of  5  cents  per  gallon,  as 
in  the  bill,  he  would  apply  it  up  to  40  per  cent,  instead  of  30  per  cent, 
butter- fat  content.  The  great  bulk  of  imported  cream  is  between 
25  and  40  per  cent.  A  rate  of  6  cents  per  pound  on  butter  is  high 
enough.  The  selling  price  of  cream  does  not  follow  exactly  the 
butter  market,  although  cream  is  bought  on  a  butter-fat  basis. 

PARAGRAPH  711. — BIRDS  AND  POULTRY. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  George  Cugley,   representing  the  American  Association  of  Incubator 
Manufacturers. 

FAVORING  LOWER  DUTIES  : 

Mr.  C.  E.  Richardson,   representing  importers  of  canary  birds,  Washing- 
ton, D.  C. 

Hearings :  Pages  2874-2877. 

Witness:  Mr.  George  Cugley,  representing  the  Buck-Eye  Incu- 
bator Co.  and  the  American  Association  of  Incubator  Manufacturers. 

Size  of  industry. — The  ramifications  of  the  poultry  industry  take 
in  a  good  many  things  beside-  the  immediate  producing  industry. 
There  are  56  incubator  manufacturers,  doing  an  annual  business 
of  $8,575,000.  The  brooder  industry  business  amounts  to  about 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    1456.  315 

$5,000,000.  About  $501,000,000  worth  of  poultry  feed  is  used  in  the 
United  States.  The  poultry  remedy  business  amounts  to  about 
$10,000,000  annually ;  the  chicken-crate  industry  to  about  $6,000,000 ; 
and  the  poultry- journal  business  to  $1,000,000. 

Remarks. — Imports  of  Chinese  eggs,  in  so  far  as  they  discourage 
poultry  production,  react  on  these  subsidiary  industries. 

Hearings :  Pages  2923-2924. 

Witness:  Mr.  C.  E.  Richardson,  representing  importers. 

Costs  and  selling  prices. — A  male  canary  during  the  summer 
months  costs  nominally  $3.50  (and  a  little  less  during  the  winter), 
but  in  reality  more  than  twice  that  when  freight,  feed,  and  care, 
etc.,  are  considered. 

Rates  suggested. — Canary  birds,  free. 

Remarks. — The  canary  brightens  the  nursery  and  cheers  the  bed- 
ridden sufferer.  The  imported  canary  does  not  compete  with  any 
domestic  trade.  It  is  said  that  40,000  people  derive  their  living  from 
bird  stores  and  that  many  would  be  closed  by  a  50-cent  duty  on 
canaries. 

PARAGRAPH  713. — EGGS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  Knox  Boude,  representing  the  American  Poultry  Association,  Petaluma, 
Calif. 

Mr.  Harry  Lewis,  representing  the  International  Baby  Chick  Association, 
Davisville,  R.  I. 

Professor  James  E.  Rice,  representing  the  American  Poultry  Association, 
Ithaca,  N.  Y. 

Mr.  B.  F.  Kaupp,  representing  the  North  Carolina  Department  of  Agri- 
culture. 

Hon.  Miles  Poindexter,  United  States  Senator  from  Washington. 

FAVORING  LOWER  DUTIES: 

Mr.  Ralph  D.  Ward,  representing  the  Ward  Baking  Co.,  New  York  City. 
Mr.  C.  E.  Richardson,  representing  dealers  in  frozen  and  dried  eggs. 
Mr.    John   M.   Hartley,    representing   the    Retail    Bakers'    Association    of 

America,  Chicago,  111. 
Mr.    Eugene   H.    Hickok,    representing    the    American    Association    of    the 

Baking  Industry,  New  York  City. 
Mr.    C.    Gordon    Wilson,    representing    the    Egg   Products    Association    of 

America. 

The  International  Co.,  Baltimore,  Md.   •  (Brief.) 
The  Seattle  Pacific  Shipping  and  Trading  Company.      (Brief.) 

Hearings:  Pages  2858-2866. 

Witness :  Mr.  Knox  Boude,  representing  the  American  Poultry 
Association  and  egg-marketing  associations. 

Costs  and  selling  prices. — Prices  of  Chinese  eggs  in  China  before 
the  war  varied  from  2  to  6  cents  per  dozen.  Under  pre-war  prices 
of  6  cents  per  dozen,  Chinese  eggs  could  be  laid  down  in  San  Fran- 
cisco for  19  cents  per  dozen.  The  freight  rate  from  San  Francisco 
to  New  York  is  $3.33  per  hundred  pounds  (about  6  cents  per  dozen), 
express  is  $6.66  per  hundred.  Freights  from  China  to  San  Francisco 
amount  to  between  4  and  5  cents  per  dozen,  about  6  cents  through 
the  Canal  to  Xew  York.  The  rate  on  train  loads  from  San  Francisco 
to  Xew  York  is  $2.61  per  ton. 

Size  of  industry. — About  1,767,000,000  dozen  eggs  produced  in  the 
United  States  are  marketed  each  year,  while  500,000,000  dozen  are 


316  DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456. 

used  on  the  farms.  There  has  been  a  surplus  for  export  of  from 
10,000,000  to  40.000,000  dozens  per  year.  The  amount  paid  farmers 
for  eggs  was  $782.000,000  and  for  poultry,  $441,750,000,  a  total  of 
$1,223,750,000. 

Comparability. — Importers  of  Chinese  eggs  are  receiving  them  in 
better  condition  all  the  time.  The  spoiled  ones  are  removed  by 
candling.  Chinese  eggs  are  six  weeks  and  sometimes  two  months  old 
when  they  arrive. 

Rates  suggested. — Eight  cents  per  dozen  on  shell  eggs. 

Remarks—  During  the  first  8  months  of  1921,  2,620,640  dozens 
were  imported,  also  eggs  in  dried  and  frozen  form  aggregating 
9,019,000  dozens.  Australia,  whose  season  is  the  opposite  of  Amer- 
ica's, has  a  prohibitive  duty  which  keeps  out  eggs  from  the  United 
States  during  the  surplus  season.  China  is  the  largest  potential 
producer  of  eggs  in  the  world ;  her  exports  are  increasing  and  pro- 
tection is  asked  for  the  future. 

Hearings :  Pages  2866-2874. 

Witness:  Mr.  Harry  Lewis,  representing  the  International  Baby 
Chick  Association  and  the  American.  Poultry  Association. 

Costs  and  selling  prices. — The  contract  price  on  dried  egg  runs 
from  $.90  to  $1  per  pound.  It  takes  about  3  dozen  Chinese  eggs,  at 
8  to  10  cents  per  dozen,  to  make  1  pound  of  dried  egg.  Chinese 
frozen  eggs  are  now  being  contracted  for  at  about  30  cents  per  pound. 

Rates  suggested. — Twenty-four  cents  per  pound  on  dried  eggs  and 
8  cents  per  pound  on  frozen  eggs. 

Remarks.— In  1920,  25,000,000  to  30,000,000  pounds  of  dried  and 
frozen  eggs  were  imported,  probably  one-fifth  of  which  where  dried. 
Beside  its  use  for  food,  dried  egg  is  used  for  fixing  dyes  in  cotton 
cloth  and  in  making  medicinal  preparations  for  skin  treatment. 
On  account  of  the  lower  wages  and  lower  prices  of  eggs  in  China, 
most  American  egg  drying  concerns  have  moved  their  machinery  to 
that  country. 

Hearings :  Pages  2877-2917. 

Witness:  Professor  James  E.  Rice,  representing  the  American 
Poultry  Association. 

Costs  and  selling  prices. — Egg  costs  per  dozen  in  1920  in  Indiana, 
Kentucky,  and  New  York  ranged  from  37  to  48  cents.  Prewar  costs 
were  from  25  to  30  cents  per  dozen,  and  present  indications  are  that 
costs  will  come  down  to  about  27  to  28  cents  within  a  few  years. 
On  this  basis  an  8  or  even  a  10  cent  duty  would  probably  permit  im- 
ports of  eggs,  which  have  sold  here  apparently  at  a  profit  of  15  to 
18  cents  per  dozen. 

Size  of  industry. — More  persons  are  directly  engaged  in  the  keep- 
ing of  poultry  than  in  any  other  kind  of  live-stock  production  or 
ether  single  agricultural  crop.  Poultry  production  equals  or  ex- 
ceeds in  importance  some  of  the  principal  farm  products  in  various 
sections. 

Rates  suggested. — The  rates  on  various  egg  products  should  be  in 
proportion  to  the  quantity  and  value  of  each  of  the  commodities, 
based  on  the  value  of  shell  eggs  during  the  months  when  the  largest 
number  are  purchased  for  drying  and  freezing.  Otherwise,  the  im- 
porter would  be  able  to  bring  in  eggs  in  the  form  paying  the  lowest 
duty.  On  the  basis  of  8  cents  per  dozen  on  eggs  in  the  shell,  the 


DIGEST   OF    TARIFF    HEARINGS,    H.    R.    7456.  317 

following  rates  are  suggested :  Frozen  or  liquid  whole  eggs,  8  cents 
per  pound ;  frozen  or  liquid  egg  yolks.  8  cents  per  pound ;  frozen  or 
liquid  egg  albumen,  8  cents  per 'pound;  dried  whole  eggs  24  cents 
per  pound;  dried  egg  yolks,  24  cents  per  pound;  dried  egg  albumen, 
24  cents  per  pound. 

Remarks. — The  great  bulk  of  imports  are  in  the  form  of  egg  prod- 
ucts (dried  or  frozen),  rather  than  eggs  in  the  shell,  and  come  largely 
from  the  Orient.  In  frozen  or  dried  eggs,  poorer  quality  eggs  and 
checked  eggs  can  be  used,  transportation  and  storage  costs  are  less, 
the  products  are  standardized  and  can  be  sold  under  a  year's  contract. 

The  problem  of  the  domestic  producer  is  to  meet  tlie  competition 
of  large  American  capitalists  syndicating  the  cheap  labor  and  nat- 
ural resources  of  China.  When  conditions  of  production  become 
more  normal  and  there  is  le^s  need  for  imported  egg  products,  there 
will  be  a  greater  tendency  for  China  exports  that  have  been  going 
to  London  to  find  an  outlet  in  America. 

In  contrast  to  the  import  trade,  American  exports  consist  almost 
entirely  of  eggs  in  the  shell,  going  largely  to  Cuba  and  Canada.  The 
Canadian  duty  is  3  cents  per  dozen. 

The  question  of  dressed-poultry  imports  is  a  serious  one,  as  big 
American  capitalists  are  preparing  to  go  on  a  large  scale  into  the 
business  of  fattening  chickens  in  China  and  Argentina  for  marketing 
in  the  United  States. 

This  country  is  producing  a  surplus  of  eggs;  exports  exceed  im- 
ports, but  the  importation  of  millions  of  dollars  worth  of  cheap 
Chinese  products  dropped  into  this  country  reduces  prices  and  dis- 
places the  same  amount  of  the  American  product.  Imports  in  the 
spring  of  the  year,  coming  onto  a  falling  market,  further  depress 
prices  out  of  proportion  to  the  amount  imported  and  make  possible 
a  manipulation  of  the  market  in  fayor  of  the  cold-storage  men. 

As  the  poultry  industry  is  very  sensitive  to  favorable  or  unfavor- 
able conditions,  the  number  of  birds  kept  may  be  greatly  changed  in 
a  single  year.  The  price  of  eggs  and  poultry  will  thus  not  remain 
higher  than  is  necessary  to  produce  sufficient  profits  to  keep  poul- 
trymen  in  the  business.  Millions  of  producers  and  laborers,  including 
farm  women,  are  the  ones  who  will  benefit  from  a  tariff. 

Hearings :  Pages  2917-2923. 

Witness:  Mr.  B.  F.  Kaupp,  representing  the  Xorth  Carolina  De- 
partment of  Agriculture. 

Costs  and  sewing  prices. — In  1920  the  average  cost  of  producing 
eggs  in  Xorth  Carolina  was  30  cents  per  dozen;  it  was  26  cents  in 
1921. 

Size  of  industry. — The  southern  poultry  business  is  part  of  the 
country's  billion-dollar  poultry  industry.  Large  sums  of  money  have 
been  spent  in  fostering  the  industry  in  the  Southern  States. 

Comparability. — Hens  in  China  scavenger  their  feed,  and  there  is 
reliable  information  to  the  effect  that  human  excretas  form  part  of 
the  foraged  food.  So  foul  and  polluted  are  these  eggs  that  they  have 
been  forbidden  entry  into  France. 

Rates  suggested.— Eight  cents  per  dozen  on  shell  eggs.  8  cents  per 
pound  on  frozen  eggs.  24  cents  on  dried  eggs,  4  cents  per  pound  on 
live  poultry,  and  5  cents  per  pound  on  dressed  poultry. 

Remarks. — Most  of  the  domestic  poultry  money  goes  to  the  women 
and  children  on  the  farms,  helping  to  provide  for  the  table  and  to 


318  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

clothe  and  send  the  children  to  school.  The  farmers,  the  manu- 
facturers of  food  for  the  Xation,  are  entitled  to  the  same  protection 
from  competition  as  other  manufacturers. 

^Witness:  Hon.  Miles  Poindexter.  United  States  Senator  from 
Washington.  (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — In  normal  times  eggs  are  produced  in 
China  for  around  6  cents  per  dozen.  If  a  duty  of  12  cents  per  dozen 
were  levied,  the  cost  delivered  in  this  countrj",  including  a  very  low 
freight  rate,  would  be  about  20  cents  per  dozen.  Domestic  eggs  can 
not  be  sold  with  a  reasonable  profit,  normally,  for  less  than  25  cents 
per  dozen. 

Size  of  industry. — Poultry  production  is  one  of  the  greatest  indus- 
tries of  the  United  States,  having  an  annual  value  of  $1,250,000.000. 

Rates  suggested. — Twelve  cents  per  dozen  on  shell  eggs ;  4  cents  on 
live,  and  7  cents  on  dressed  poultry :  proportionate  increases  on  other 
poultry  products. 

Remarks. — The  poultry  industry  on  the  Pacific  coast  has  grown  to 
large  proportions  in  the  last  few  years.  During  the  war,  the  inter- 
ruptions to  imports  afforded  protection,  but  now  6  cents  per  dozen 
will  not  be  sufficient. 

The  greatest  competitor  is  China,  whose  production  is  at  its  peak 
at  the  same  time  as  the  domestic.  There  is  no  danger  of  profiteering 
in  the  egg  industry,  because  of  the  large  number  of  small  producers. 
The  chief  opposition  to  adequate  protection  comes  from  American 
investors  who  have  built  up  the  Chinese  industry. 

Hearings :  Pages  2959-2964. 

Witness :  Mr.  Ralph  D.  Ward,  representing  the  Ward  Baking  Co. 

Costs  and  selling  prices. — The  average  price  of  Chinese  as  well  as 
American  frozen  eggs  is  25  cents  per  pound.  A  pound  is  about 
equal  to  a  dozen. 

Size  of  industry. — The  company  produces  more  than  1,000,000 
loaves  of  bread  a  day  and  at  least  half  a  million  cakes. 

Comparability. — Chinese  frozen  eggs  are,  if  anything,  slightly 
better  than  those  frozen  here.  The  latter  are  almost  entirely  from 
cracked  eggs. 

Rates  suggested. — The  company  asks  a  rate  of  2  cents  per  pound 
on  frozen  eggs,  which  is  somewhat  higher  than  the  present  rate. 

Remarks. — Cake  makers  prefer  to  use  frozen  eggs  because  they 
can  contract  for  their  year's  supply  in  the  spring  and  the  quality  is 
more  uniform  than  that  of  storage  "eggs. 

The  domestic  supply  of  frozen  eggs  is  inadequate  because  it  pays 
only  to  freeze  cracked  eggs  in  this  country. 

The  proposed  duty  of  8  cents  would  shut  out  Chinese  eggs.  This, 
while  increasing  the  price  of  domestic  frozen  eggs,  would  not  benefit 
the  farmer,  as  the  freezing  of  eggs  is  in  the  hands  of  the  big  packers. 

Hearings :  Pages  2964-2966. 

Witness:  Mr.  C.  E.  Richardson,  representing  dealers  in  frozen  and 
dried  eggs  in  the  United  States. 

Rates  suggested. — Seven  cents  per  pound  on  dried  whole  eggs,  dried 
egg  albumen,  and  dried  egg  yolk ;  2  cents  per  pound  on  frozen  eggs, 
not  including  the  weight  of  the  immediate  container. 

Remarks.— These  products  are  demanded  by  bakers  because  the 
quality  and  supply  are  uniform ;  a  year's  supply  can  be  contracted 


DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456.  319 

for  at  H  fixed  price.  The  Chinese  eggs  are  wholesome  and  are  in- 
spected by  United  States  Government  inspectors.  Their  importa- 
tion has  made  possible  a  great  development  in  the  baking  industry. 
They  have  not  displaced  shell  eggs. 

Hearings :  Pages  2926-2929. 

Witness :  Mr.  J.  M.  Hartley,  representing  the  Retail  Bakers'  Asso- 
ciation of  America. 

Remarks. — The  witness  asked  permission  to  file  a  brief.  He  said 
that  retail  bakers  were  especially  interested  in  imports  of  eggs, 
almonds,  filberts,  and  coconut.  The  average  cost  of  raw  material  in 
cake  is  50  per  cent  of  the  whole  and  a  large  proportion  of  this  is  for 
eggs. 

Hearings :  Pages  2933-2959. 

Witness:  Mr.  E.  H.  Hickok,  representing  the  American  Associa- 
tion of  the  Baking  Industry. 

Costs  find  selling  prices. — Various  factors,  including  ocean  and 
transcontinental  freight  and  additional  packing,  make  up  an  addi- 
tional cost  of  10  cents  per  pound  in  placing  Chinese  frozen  eggs  on 
the  eastern  United  States  market.  This  offsets  the  cheaper  supply 
of  eggs  at  the  source. 

ftize  of  industry. — The  bakeries  of  the  United  States  consume  annu- 
ally from  40.000^000  to  50,000,000  pounds  of  dried  and  frozen  eggs. 
Of  this  the  cracked  and  checked  eggs  from  the  packing  houses  in  the 
United  States  furnish  about  one-half. 

Memories. — A  high  duty  would  not  help  poultry  producers,  but 
would  help  the  large  Chicago  packers  who  produce  frozen  eggs. 

Hearings :  Pages  2929-2933. 

Witness:  Mr.  C.  Gordon  Wilson,  representing  the  Egg  Products 
Association  of  America. 

Costs  and  selling  prices. — The  present  price,  without  duty,  of  whole 
desiccated  egg  is  35  cents  per  pound ;  of  desiccated  yolk,  25  cents;  and 
of  desiccated  albumen,  50  cents. 

Kates  suggested. — Dried  egg  yolks,  7  cents  per  pound ;  whole  dried 
egg.  10  cents;  albumen,  12  cents. 

Kemarks. — The  duty  should  be  low  enough,  so  that  dried  eggs  can 
continue  to  be  imported. 

Witness:  The  International  Co.,  Baltimore,  Mel.,  importers  and 
manufacturers.  (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — The  company  protests  against  "the  proposed 
exorbitant  duty  on  dried  eggs,  amounting  to  between  400  and  500 
per  cent." 

Remarks. — Dried-egg  products  do  not  compete  with  shell  eggs, 
since  they  can  not  well  be  used  in  the  household.  The  proposed  duty 
would  not  benefit  the  farmer  but  would  constitute  a  heavy  burden  on 
the  cake  industry. 

Witness:  The  Seattle  Pacific  Shipping  &  Trading  Co.  (Brief:  no 
appearance  at  hearings.) 

Rates  suggested. — The  brief  is  a  protest  against  the  proposed  duties 
on  egg  products. 

Remarks.— The  Chinese  trade  in  eggs  runs  close  to  $100,000,000 
annually,  about  one  third  of  which  comes  to  this  country.  This  is 
the  basis  of  a  large  amount  of  commerce  with  China. 


320  DIGEST   OF   TARIFF    HEARINGS,   H.    R.    14-56. 

The  contention  that  the  American  poultryman  needs  protection 
is  fallacious.  His  best  customer  is  the  skilled  artisan,  whose  interests 
are  tied  up  with  the  export  trade. 

PARAGRAPH  715 ;  ALSO  1507  or  SCHEDULE  15. — BLACK  OR  SILVER  FOXKS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING   LOWER   DUTIES: 

Mr.  F.  E.  Muzzy,  representing  the  live  silver  and  black  fox  growing  indus- 
try ;  address.  Springfield.  Mass. 
The  Royal  Silver  Black  Fox  Co.,  Muskegon,  Mich.      (Brief.) 

Hearings :  Page  2969-2977. 

Witness :  Mr.  F.  E.  Muzzy,  Springfield,  Mass. 

Costs  and  selling  prices. — Breeding  foxes  range  in  value  from  $500 
to  $3,000  per  pair.  Pelts  range  from  $100  to  $1.000  each. 

Rates  suggested. — The  proposed  duty  of  $350  per  head  would  cut 
down  imports  to  not  more  than  200,  which  would  mean  not  more  than 
$70,000  revenue.  The  witness  desired  especially  that  the  Fordney 
bill  exemption  of  silver  foxes  from  the  provision  for  free  importa- 
tion of  breeding  animals  be  dropped,  and  claimed  that  75  per  cent  of 
the  breeders  want  free  importation  of  breeding  animals.  Hereto- 
fore, silver  foxes  have  come  in  under  the  provision  for  "  all  other 
animals."  They  could  not  be  brought  in  free  as  breeding  animals, 
because  no  Canadian  studbook  was  recognized  by  the  Department  of 
Agriculture.  It  seems  likely  that  a  studbook  will  soon  be  recognized, 
enabling  breeding  animals  to  be  imported  free  under  the  act  of  1913. 
Witness  would  drop  all  special  provision  for  silver  or  black  foxes  and 
classify  them  with  "  all  other  animals,"  the  proposed  duty  on  which 
is  15  per  cent. 

Witness:  Royal  Silver  Black  Fox  Co..  Muskegon.  Mich.  (Brief: 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — Foxes  bring  up  to  $2,000  to  $2.500  per 
pair  when  sold  for  future  delivery  with  one  year  of  free  ranrhinir 
and  a  guarantee  of  an  increase  of  at  least  100 "per  cent  in  the  stock, 
through  breeding,  prior  to  delivery. 

Rates  suggested. — Breeding  foxes  to  be  admitted  free. 

Remarks. — The  proposed  duty  of  $350  per  fox  is  at  least  100  per 
cent  on  the  average  selling  price.  Fully  90  per  cent  of  the  animals 
are  sold  to  gullible,  inexperienced  people  t»y  unscrupulous  dealers. 

Good  breeding  foxes  are  needed  in  this  country:  those  advocating 
the  proposed  tax  are  a  few  breeders  serving  their  selfish  interests. 
The  Government  should  prohibit  the  importation  of  foxes  for  breed- 
ing or  other  purposes  unless  they  measure  up  to  high  standards  of 
excellence. 

PARAGRAPHS  718-720. — FISH. 
WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Hon.  Dan  A.   Sutherland,  a  Delegate  in  Congress  from  the  Territory   of 

Alaska,  representing  Alaskan  fisheries. 

Mr.  Ashron  I).  Thomas,  representing  the  Pacific  Cured  Fish  Association, 
operating  in  Alaska. 


DIGEST   OF   TARIFF   HEARINGS,    H.    R.    74-36.  321 

FAVORING  LOWER  DUTIES  : 

Mr.    George   E.   Willey.    representing   the   Boston    Fish   Commission    Deal- 
ers' Association  and  other  salt-fish  dealers'  associations,  Boston,  Mass. 
Mr.  J.  L.  Fawsitt.  Irish  trade  commissioner  to  America,  representing  the 

Irish  salt-lish  industry. 

S.  H.  Levin's  Sons,  importers,  Philadelphia,  Pa.     (Brief.) 
The  Norwegian  Minister  to  the  United  States.     (Brief.) 

REQUESTING  RECLASSIEICATION  : 

Hon.  Frederick  Hale,  United  States  Senator  from  Maine,  representing  the 

herring  packers  of  Maine. 

Hon.  Wesley  L.  Jones,  United  States  Senator  from  Washington. 
The  Foreign  Commerce  Association  of  the  Pacific  Coast,  San  Francisco, 

Calif.     (Brief.) 
Mr.  H.  C.  Strong,  representing  the  Commercial  Club  of  Ketchikan,  Ketchi- 

kan.  Alaska. 

Witness:  Hon.  Dan  A.  Sutherland,  representing  Alaskan  fisheries. 

Hearings:  Pages  3007-3013. 

Costs  and  selling  prices. — The  average  price  of  halibut  in  1920  at 
Seattle  was  174  cents  per  pound.  This  is  the  highest-priced  deep- 
sea  fish  on  the  American  market. 

Size  of  industry. — In  1920,  the  Pacific  coast  produced  about  50,- 
000.000  pounds  of  halibut :  the  Atlantic  coast  about  4,000,000  pounds. 

Rates  suggested. — That  duties  in  paragraph  720  •  remain  as  pro- 
posed and  that  halibut,  fresh,  frozen,  or  packed  in  ice  be  dutiable  at 
2  cents  per  pound. 

Remarks. — The  witness  asks  for  an  administrative  provision  which 
would  confine  the  privilege  of  shipping  in  bond  to  the  United  States 
to  United  States  fishermen. 

Hearings :  Pages  2991-2993. 

Witness :  Mr.  Ashton  W.  Thomas,  representing  the  Pacific  Cured 
Fish  Association,  operating  in  Alaska. 

Costs  and  selling  prices. — Freight  from  Alaska  to  Seattle  is  $1.50 
per  barrel  and  from  there  to  Boston,  in  refrigerator  cars,  $6.50  per 
barrel.  Prices  range  from  $15  to  $17  per  barrel  of  250  pounds. 

Size  of  industry. — There  are  six  plants  in  Alaska,  emploving  about 
500  persons,  with  an  investment  of  about  $1,000,000. 

Rates  suggested. — Two  cents  per  pound  on  the  net  weight  of  fish 
or  1^  cents  on  the  gross  weight.  This  duty  is  necessary  for  the  con- 
tinued existence  of  this  new  industry. 

Hearings :  Pages  2993-3003. 

Witness:  Mr.  George  E.  Willey.  representing  the  Boston  Fish  Com- 
mission Dealers'  Association  and  other  salt  fish  dealers'  associations, 
Boston,  Mass. 

Costs  and  selling  prices. — The  average  price  of  a  barrel  of  herring 
is  $8  and  of  mackerel  $12.70. 

&t's<>  of  industry. — Approximately  $9,000,000  worth  of  pickled 
mackerel  and  herring  is  produced  annually. 

Comparability. — At  times,  Alaskan  herring  sells  for  more  than 
the  imported. 

Rates  suggested. — One  cent  per  pound  on  mackerel  and  codfish  and 
one-half  cent  on  herring.  The  duties  in  the  Fordney  bill  are  regarded 
as  prohibitive,  the  proposed  rates  on  mackerel  and  herring,  for  in- 
stance, ranging  from  42|  to  67^  per  cent  ad  valorem.  These  pickled 
fish  are  largely  the  food  of  the  poor,  and  it  is  proposed,  under  the  bill, 
to  subject  them  to  higher  duties  than  those  on  food  luxuries.  The 


322  DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456. 

United  States  can  not  produce  enough  fish  of  the  required  sort  to 
supply  the  demand/ 

Hearings:  Pages  2989-2991. 

Witness:  Mr.  J.  L.  Fawsitt,  Irish  trade  commissioner  to  America, 
representing  the  Irish  salt-fish  industry.  (Brief.) 

Remarks. — American  supplies  of  native  salted  mackerel  and  her- 
ring are  inadequate  to  meet  the  large  domestic  demand.  Ireland  is  an 
important  source  of  this  food,  which  is  mainly  consumed  by  the  work- 
ing classes.  A  duty  would  restrict  imports,  increase  prices,  and  dis- 
courage the  growing  Irish  trade  with  the  United  States.  The  Irish 
fishing  industry  is  declining,  with  fewer  persons  and  boats  now 
employed  and  an  annual  catch  very  much  smaller  than  a  decade  or 
more  back. 

Witness :  S.  H.  Levin's  Sons,  importers,  Philadelphia,  Pa.  (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — Salt  mackerel  and  herring  to  be  put  on  the 
free  list.  The  highest  duty  which  the  trade  can  stand  is  the  1  cent 
per  pound  on  mackerel  and  three-quarters  cent  on  herring  provided 
in  the  act  of  1909. 

Remarks. — The  proposed  duties  on  salt  fish  would  amount  to  al- 
most 100  per  cent  ad  valorem.  Such  a  high  duty  would  ruin  the 
industry.  The  duties  proposed  are  also  far  too  high  for  revenue 
purposes. 

Witness:  The  Norwegian  Minister  to  the  United  States,  letter 
transmitted  by  Hon.  Charles  E.  Hughes,  Secretary  of  State.  (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — The  writer  desires  that  salt  fish  remain  on  the 
free  list. 

Remarks. — The  United  States  produces  only  a  part  of  the  salt 
fish  necessary  to  supply  the  demand ;  domestic  production  will 
always  be  limited  because  of  its  nature.  Salt  fish  is  a  necessary  food 
for  the  working  classes. 

The  proposed  duties  are  such  as  to  make  importations  from  Xor- 
way  practically  impossible. 

Hearings:  Page  3014. 

Witness :  United  States  Senator  Frederick  Hale,  representing  some 
of  the  herring  packers  of  Maine.' 

Rates  suggested. — The  witness  proposed  to  change  the  wording  of 
paragraph  719  as  follows : 

On  line  3,  page  88.  after  the  words  "  ad  valorem,"  insert  the  words 
"  smoked  herring,  skinned  or  boned,  2£  cents  per  pound."  In  line 
5,  page  88,  strike  out  the  words  "  herring  skinned,"  so  that  the  para- 
graph will  read: 

Salmon,  pickled,  salted,  smoked,  kippered,  or  otherwise  prepared  or  pre- 
served, 25  per  cent  ad  valorem ;  finnan  haddie,  25  per  cent  ad  valorem ;  smoked 
herring,  skinned  or  boned,  2£  cents  per  pound ;  fish,  dried,  salted,  or  unsalted, 
If  cents  per  pound ;  fish,  skinned  or  boned,  in  bulk  or  in  immediate  containers, 
weighing  with  their  contents  more  than  30  pounds  each,  2^  cents  per  pound, 
including  the  weight  of  the  immediate  container  with  the  contents. 

Remarks. — The  witness  described  this  as  "  a  technical  correction  " 
but  appeared  to  agree  with, Senator  Smoot,  of  the  committee,  that 
"  really  it  is  lowering  the  duty  from  what  the  House  has." 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.   7456.  323 

Witness :  The  Foreign  Commerce  Association  of  the  Pacific  Coast. 
San  Francisco,  Calif.  (Brief;  no  appearance  at  hearings.) 

Comparability. — The  Japanese  canned  crab  meat  is  of  the  species 
called  "  Taraba,"  found  only  in  Japanese  waters.  American  crab 
meat  is  served  only  fresh,  the  meat  being  too  soft  and  the  season  be- 
ing too  short  for  canning.  There  is  no  competition  between  the 
American  fresh  crab  and  the  Japanese  canned  product. 

Rates  requested. — The  association  desires  that  crab  meat  be  placed 
on  the  free  list  or  that,  at  least,  the  duty  be  reduced  to  a  reasonable 
basis. 

Remarks. — The  proposed  duty  is  too  high  for  revenue  purposes. 

Hearings :  Pages  2980-2983. 

Witness:  Hon.  Wesley  L.  Jones,  United  States  Senator  from 
Washington. 

Rates  suggested. — The  following  substitute  is   suggested : 

"  Paragraph  718.  All  halibut,  salmon,  swordfish.  and  sableflsh,  fresh,  frozen, 
or  packed  lit  ice.  2  cents  a  pound :  Provided,  That  no  halibut,  salmon,  or 
sablefish,  fresh,  frozen,  or  packed  in  ice.  taken  from  the  North  Pacific  Ocean  or 
its  tributary  waters,  shall  be  admitted  into  the  United  States  through  a 
foreign  country,  unless  same  shall  be  in  bond  from  an  American  port.  All 
other  fish,  fresh,  frozen,  or  packed  in  ice,  not  specially  provided  for,  1  cent  a 
pound." 

Insert  a  new  paragraph  after  paragraph  718 : 

"  Halibut  and  salmon  from  the  waters  of  the  North  Pacific  Ocean,  fresh, 
frozen,  or  prepared,  for  shipment  at  or  shipped  from  a  foreign  port,  3  cents  per 
pound." 

Remarks. — Canadian  authorities  have  put  into  effect  all  sorts  of 
restrictions  and  discriminations  through  their  orders  in  council 
against  American  .fishermen  and  American  fish,  with  the  avowed 
purpose  of  diverting  the  business  to  Prince  Rupert  and  then  send- 
ing the  fish  over  the  Grand  Trunk  Railway  to  eastern  markets.  Tim 
purpose  of  this  amendment  is  to  protect  and  keep  under  the 
American  flag  the  fishing  ships  in  the  Xorth  Pacific  and  to  encourage 
the  shipping  of  fish  over  American  railroads. 

This  request  is  supported  by  memoranda  from  the  Seattle  Cham- 
ber of  Commerce  and  the  Commercial  Club  of  Ketchikan. 

Hearings :  Pages  2983-2988. 

Witness:  Mr.  H.  C.  Strong,  representing  the  Commercial  Club  of 
Ketchikan.  Alaska. 

Size  of  industry. — During  1920,  258  fishing  boats  of  American 
registry  operated  out  of  Prince  Rupert,  Canada. 

Comparability. — Fish  found  off  the  coast  of  Alaska  are  of  the 
highest  quality  found  anywhere  in  the  world. 

Rates  requested. — The  witness  desires  that  the  following  amend- 
ment to  the  fish  paragraphs  be  adopted : 

Provided,  That  no  fresh  or  frozen  fish  taken  from  the  North  Pacific  Ocean 
or  tributary  waters  shall  be  admitted  into  the  United  States  through  any  for- 
eign country  except  when  the  same  shall  be  in  bond  from  an  American  port. 

Remarks. — Prince  Rupert  is  the  market  place  for  the  Alaskan 
fishing  industry.  This  is  due  to  a  combination  of  geographical 
and  commercial  circumstances,  together  with  the  support  and  in- 
tense interest  of  the  Canadian  government.  Passage  of  the  above 
proposed  provision  would  transfer  this  American  industry  from 
Canada  to  Alaska. 


324  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Alaskan  ports  have  all  the  facilities  for  handling  these  fish 
and  preparing  them  for  the  market. 

Statements  favoring  protection  of  the  Alaskan  fishing  interests 
were  submitted  from  Gov.  Bone,  of  Alaska,  from  Mr.  Herbert 
Hoover,  United  States  Secretary  of  Commerce,  and  from  the  Com- 
mercial Club  of  Ketchikan,  Alaska. 

PARAGRAPH  722. — CRAB  MEAT. 

WITNESSES. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Letter  from  the  Stuart  Co.  (Inc.)   to  Hon.  Wesley  L.  Jones,  Senator  from 

Washington. 
Memorandum  of  John  N.  Cobb,  director,  College  of  Fisheries,   University 

of  Washington. 

FAVORING  LOWER  DUTIES  : 

Japanese  importers  of  crab  meat.     (Brief.) 

Hearings:  Page  3016. 

Letter  from  the  Stuart  Co.  (Inc.)  to  Hon.  Wesley  L.  Jones,  Sena- 
tor from  Washington. 

Costs  and  selling  prices. — Wages  are  a  large  part  of  the  cost 
in  producing  canned  crabs;  Washington  and  Oregon  packers  are 
handicapped  by  costs  higher  than  Japanese. 

Size  of  industry. — Alaska  can  produce  500,000  cases  of  canned 
crab  meat  annually,  which  is  considerably  in  excess  of  domestic 
requirements.  In  the  first  10  months  of  1920  imports  of  Japanese 
crab  meat  were  valued  at  over  $2.000,000.  Several  Washington  and 
Oregon  packers  are  struggling  to  build  up  the  industry. 

Comparability. — Only  the  meat  from  the  Dungeness  type  of  crab 
is  used,  while  the  Japanese  u  e  the  large  spider  crab,  which  is 
larger  and  much  coarser  in  texture. 

Rates  suggested. — On  crab  meat.  26  per  cent  ad  valorem. 

Hearings :  Pages  3016-3019. 

Witness :  John  X.  Cobb,  director.  College  of  Fisheries,  University 
of  Washington.  (Brief.) 

Costs  aaid  selling  prices — The  declared  value  of  imports  of  crab 
meat  during  1920  averaged  53  cents  per  pound.  The  retail  price  in 
Seattle  markets  in  October,  1921.  was  60  cents. 

Size  of  industry. — While  domestic  production  at  present  is  not 
large  enough  to  supply  the  demand,  given  protection  from  Japanese 
imports  it  soon  would  be.  There  are  three  canneries  in  operation  in 
Alaska  and  three  more  building.  Canneries  in  Oregon  and  Washing- 
ton have  canned  crabs  and  under  a  favorable  tariff  will  again  do  so. 
Domestic  waters  could  produce  annually  500.000  cases  or  more  of 
Dungeness  crab  meat  without  depleting  t)ie  supply. 

Com-parability. — The  spider  crab,  the  one  canned  in  Japan,  is 
noted  for  the  pinkness  of  the  claw  meat,  which  makes  it  especially 
good  for  garnishing  dishes.  The  Dungeness  crab  is  found  in  abun- 
dance off  the  Alaskan  coasts,  and  in  Washington  and  Oregon  waters. 
The  spider  crab  is  found  in  deeper  water.  The  blue  crab  is  packed 
on  the  eastern  coast. 

Rates  suggested. — Twenty-six  per  cent  ad  valorem  on  crab  meat. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  325 

Remarks. — If  domestic  production  were  stimulated,  American 
business  interests  would  benefit  more  than  from  the  imports. 

Witnesses:  Japanese  importers  of  crab  meat.  (Brief  transmitted 
at  the  request  of  the  Japanese  ambassador.) 

Costs  and  selling  prices. — The  October,  1921,  prices  were  $7.25  per 
dozen  1-pound  cans  of  lobster  as  compared  with  $4  for  canned  crab 
meat. 

Rates  suggested. — The  importers  desire  that  imported  crab  meat 
remain  on  the  free  list. 

Remarks. — Lobster,  which  is  in  the  same  class  as  crab  meat,  was 
left  on  the  free  list.  The  proposed  duty  on  crab  meat  is  prohibitive. 

PARAGRAPHS  724,  731,  AND  778. — BUCKWHEAT  AND  BRAN. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWEE  DUTIES  : 

Mr.  C.  M.  Cox,  representing  the  St.  Albans  Grain  Co.,  St.  Albans,  Vt. 

Hearings :  Pages  3019-3026. 

Costs  and  selling  prices. — In  October,  1921,  the  price  of  bran  in 
Dakota  was  $9  per  ton,  while  it  was  $20  in  New  England. 

Size  of  industry. — Production  of  buckwheat  in  1920  was  13,- 
789.000  bushels,  while  imports  were  227,000  bushels. 

Rates  suggested. — Ten  cents  per  100  pounds  on  buckwheat  and 
bran ;  $2  per  ton  on  hay  and  50  cents  per  ton  on  straw. 

Remarks. — In  New  England,  buckwheat  is  used  principally  as 
feed  for  hens. 

Bran  comes  in  from  Canada  when  the  mills  are  running  only  part 
time  and  the  domestic  supply  is  inadequate. 

An  ad  valorem  rate,  based  on  values  at  the  point  of  entry,  would 
be  unfair  because  of  the  great  difference  in  eastern  and  western 
prices.  Such  a  rate  would  cause  much  litigation, 

PARAGRAPH  726. — MACARONI. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.    B.    R.    Jacobs,   representing   the   National   Macaroni    Manufacturers' 

Association.  Washington,  D.  C. 

The  Jefferson  Macaroni  Co.,  Reynoldsville,  Pa.     (Brief.) 
The  Connellsville  Macaroni  Co.,  Connellsville,  Pa.     (Brief.) 

Hearings :  Pages  3026-3035. 

Witness:  Mr.  B.  R.  Jacobs,  representing  the  National  Macaroni 
Manufacturers'  Association,  Washington,  D.  C. 

Costs  and  selling  prices. — A  recent  quotation  on  first-grade  maca- 
roni was  5.6  cents  duty  free  in  New  York.  In  1920  conversion  cost 
in  eastern  United  States  was  3.98  cents  per  pound  as  compared  with 
1.65  cents  in  Italy.  Wages  in  Italy  are  70  to  80  cents  per  day 
as  compared  with  $6  to  $7  here.  Domestic  macaroni  sells  for  about 
8  cents  per  pound. 

Size  of  industry. — In  1920  450,000.000  pounds  of  macaroni,  valued 
at  $45,000.000,  were  produced  in  the  United  States.  The  invest- 
ment in  the  business  is  about  $16.250,000  and  wage  earners  number 
12,000. 

77134—22 22 


326  DIGEST   OF   TARIFF    HEARINGS,,   H.   R.   7456. 

Comparability. — Although  domestic  macaroni  is  just  as  good  as 
the  imported,  Italian  macaroni,  because  of  its  reputation,  commands 
a  price  premium  of  3  cents  per  pound.  Italians  accept  the  domestic 
as  a  substitute  for  the  imported  only  when  it  is  impossible  to  get 
the  latter. 

Rates  suggested. — On  macaroni,  3.5  cents  per  pound ;  on  noodles,  4 
cents  per  pound. 

Remarks. — The  Italian  embargo  has  not  been  removed  long 
enough  to  allow  the  present  strength  of  Italian  competition  to  be 
apparent. 

Witness:  The  Jefferson  Macaroni  Co.,  Reynoldsville,  Pa.  (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — A  duty  of  3  to  3|  cents  per  pound  on  macaroni 
is  necessary  to  protect  the  industry. 

Remarks. — The  industry,  which  was  greatly  expanded  during  the 
war,  when  imports  were  cut  off,  is  now  threatened  by  large  imports 
from  Europe. 

Witness:  The  Connellsville  Macaroni  Co.  (Brief;  no  appearance 
at  hearings.) 

Rates  suggested. — A  duty  of  3^  cents  per  pound  on  alimentary 
pastes  is  absolutely  just. 

PARAGRAPH  730. — WHEAT,  AND  WHEAT  PRODUCTS. 
WITNESSES,  AND  INTERESTS  BEPEESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  W.  O.  Hamilton,  president  of  the  New  York  State  Millers'  Association, 
Caledonia,  N.  Y. 

Mr.  James  F.  Bell,  representing  the  Washburn-Crosby  Co.,  Minneapolis, 
Minn. 

Mr.  L.  R.  Moses,  president  of  the  Southwestern  Millers'  League,  Kansas 
City,  Mo. 

Mr.  A.  P.  Husband,  representing  the  Millers'  National  Federation,  Chi- 
cago, 111. 

Hon.  Edwin  F.  Ladd,  United  States  Senator  from  North  Dakota. 

REQUESTING  RECLASSIFICATION  : 

Mr.  A.  L.  Goetzman,  representing  the  Millers'  National  Federation,  Min- 
neapolis, Minn. 

Hearings :  Pages  3059-3060. 

Witness :  Mr.  W.  O.  Hamilton,  president  of  the  New  York  State 
Millers'  Association,  Caledonia,  N.  Y. 

Rates  suggested. — On  a  196-pound  barrel  of  flour,  four  and  one- 
half  times  the  duty  on  a  bushel  of  wheat,  plus  50  cents. 

Remarks. — The  mills  in  the  State  of  New  York  have  a  capacity  of 
about  60,000  barrels  per  day.  Under  the  operation  of  the  emergency 
tariff  act  all  of  them  are  substantially  out  of  business  except  one  unit 
operating  on  bonded  wheat. 

Hearings :  Pages  5068-5099. 

Witness :  Mr.  James  F.  Bell,  representing  the  Washburn-Crosby 
Co.,  Minneapolis,  Minn. ;  also  a  number  of  northwestern  and  Illinois 
mills  and  the  New  York  Millers'  Association. 

Rates  suggested. — The  witness  is  not  interested  in  whether  or  not 
duties  are  put  on  wheat  and  flour.  American  millers  are  ready  to 
compete  with  the  world  on  an  equal  basis.  But  if  a  duty  is  put  on 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  327 

wheat,  the  millers  want  a  compensatory  duty  on  flour.  The  rate  on 
flour  per  barrel  of  196  pounds  should  be  five  to  six  times  that  on  a 
bushel  of  wheat,  or  four  and  one-half  times  plus  50  cents  per  barrel. 
Remarks. — The  witness's  testimony  is  concerned  chiefly  with  Title 
III,  sections  314  and  316.  dealing  with  drawback  and  bonding  special 
provisions.  The  above  reference  is  included  as  bearing  upon  the 
general  question  of  flour  and  wheat  duties. 

Hearings :  Pages  3039-3045. 

Witness :  Mr.  L.  E.  Moses,  president  of  the  Southwestern  Millers' 
League,  Kansas  City,  Mo. 

dost  and  selling  prices. — High-grade  flour  of  southwest  hard  wheat 
sells  for  $6.25  per  barrel,  packed  and  delivered  in  New  York.  Kansas 
City  patent  flour  is  worth  about  $7  a  barrel  by  the  sack.  This  is  the 
flour  sold  in  the  United  States  and  has  to  return  the  profit  derived 
from  the  entire  product,  as  there  is  not  a  miller  in  the  United  States 
who  figures  any  profit  on  "  feed."  The  lower  grades  of  flour  are 
exported  to  Europe,  at  prices  in  competition  with  foreign  mills — 
whatever  can  be  got. 

,  Rates  suggested. — On  a  196-pound  barrel  of  flour,  four  and  one- 
half  times  the  duty  on  1  bushel  of  wheat  plus  50  cents.  A  specific 
duty  on  by-products  is  also  desired.  An  ad  valorem  duty  would  pro- 
tect American  wheat,  subject  as  it  is  to  fluctuations,  better  than  a 
specific  duty  if  the  "  feed  "  is  protected  by  a  specific  duty.  On  the 
basis  of  computations  laid  before  the  committee,  the  witness  arrived 
at  the  figure  of  $1.21|  as  the  proper  duty  on  a  barrel  of  flour  and 
$1.51  on  patent  flour  requiring  6  bushels  and  2  pounds  of  wheat  for 
its  production. 

Remarks. — Some  flour  sent  to  the  United  Kingdom  is  high  grade 
compared  with  other  export  flour.  About  50  per  cent  of  the  flour 
going  to  the  United  Kingdom  is  what  is  there  termed  "  a  patent  " 
but  here  termed  "•  a  straight."  Fifty  per  cent  is  made  as  an  offal 
from  what  American  people  consume. 

Of  the  100  per  cent  flour,  an  average  of  about  75  per  cent  of  the 
best  part  is  put  into  flour  for  American  consumption. 

The  additional  50  cents  duty  proposed  is  protective,  not  prohibi- 
tive. 

The  export  milling  business  allows  the  miller  to  keep  down  his 
overhead;  thus  it  pays  even  though  he  derives  no  direct  profits  from 
that  source. 

Under  the  emergency  tariff  (35  cents  per  bushel  on  wheat  and  20 
per  cent  ad  valorem  on  flour)  the  valuation  taken  was  that  at  the 
Canadian  mill.  This  resulted  in  a  bushel  of  wheat  imported  in  the 
form  of  flour  paying  a  duty  of  18  cents  as  against  35  cents  if  imported 
as  wheat. 

Until  Canadian  flour  came  in,  the  mills  were  running  90  per  cent 
capacity,  and  after  that  only  62  per  cent. 

Hearings :  Pages  3045-3055. 

Witness :  Mr.  A.  P.  Husband,  representing  The  Millers"  National 
Federation,  Chicago,  111. 

Costs  and  selling  prices. — In  November,  1921,  Canadian  flour  sold 
in  Boston,  duty  paid,  for  $7.50,  or  80  cents  to  $1  below  what  Ameri- 
can flour  sold  for. 


328  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

8ize  of  industry. — The  milling  industry  is  fourth  in  importance 
in  the  United  States. 

Rates  suggested. — The  federation  favors  a  specific  duty  on  both 
wheat  and  flour  and  desires  that  the  specific  duty  on  a  barrel  of 
196  pounds  of  flour,  be  four  and  one-half  times  the  specific  duty  on 
one  bushel  (60  pounds)  of  wheat  plus  50  cents. 

Remarks. — On  an  average,  nearly  5  bushels  of  wheat  are  required 
to  produce  a  barrel  of  flour. 

The  emergency  act  duty  of  20  per  cent  ad  valorem  on  wheat 
products,  compared  with  35  cents  per  bushel  on  wheat,  has  not  given 
sufficient  protection  and  has  allowed  considerable  imports  of  flour. 

By  means  of  lower  rates  on  flour  from  the  Shipping  Board,  the 
millers  are  able  to  ship  to  all  parts  of  the  world.  Some  soft  wheat 
lor  crackers  goes  to  Canada. 

The  average  miller  does  not  figure  on  making  any  profits  on  his 
export  business.  The  increased  production  allows  him  to  keep  down 
his  overhead. 

The  American  trade  demands  the  highest  grade  flour,  while  the 
export  trade  takes  lower  grades. 

Hearings :  Pages  3061-3071. 

Witness :  Hon.  Edwin  F.  Ladd,  United  States  Senator  from  North 
Dakota. 

Rates  suggested. — The  proposed  duty  on  flour  is  not  high  enough 
in  relation  to  the  duty  on  wheat.  It  should  be  raised  to  65  cents  per 
100  pounds. 

Hearings :  Pages  3036-3038. 

Witness :  Mr.  A.  L.  Goetzman,  representing  the  Millers'  National 
Federation. 

Rates  suggested. — A  duty  to  be  put  on  flour  equivalent  to  that  on 
wheat.  The  proposed  rates  of  25  cents  per  bushel  on  wheat  and  50 
cents  per  hundred  on  flour  would  be  a  discrimination  against  flour 
of  51  cents  per  barrel,  since  it  takes  6  bushels  and  2  pounds  of  wheat 
to  make  a  barrel  of  family  patent  flour.  To  make  a  barrel  of  "  100 
per  cent  flour,"  4^  bushels  of  wheat  are  required.  The  witness  asked 
for  a  duty  of  25  per  cent  ad  valorem  on  wheat  flour,  semolina, 
crushed  or  cracked  wheat,  bran,  shorts,  and  middlings  against  pro- 
tection of  25  cents  per  bushel  on  wheat. 

PARAGRAPHS  735  AND  736. — APPLES  AND  BANANAS. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

The    American    Fruit    and    Vegetable    Shippers'    Association,   Chicago,    111. 
(Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Crab  apples  and  bananas  to  be  put  on  the  free 
list.  Very  few  crab  apples  are  produced  in  the  United  States  for 
commercial  purposes,  and  practically  all  of  the  carload  movement  of 
crab  apples  comes  from  British  Columbia. 

As  no  bananas  are  produced  in  this  country  there  is  no  occasion  for 
protection  of  an  American  industry.  Large  quantities  of  bananas 
are  consumed  by  workingmen  who  are  least  able  to  pay  a  duty. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  329 

PARAGRAPH  736. — BANANAS. 

WITNESS. 

REQUESTING  RECLASSIFICATION  : 

The  British  ambassador,  letter  transmitted  by  Hon.  Charles  E.  Hughes, 
Secretary  of  State.  (Letter  of  August  16,  1921,  in  the  interests  of 
Jamaica.) 

Size  of  industry. — Jamaica  is  normally  the  largest  banana  pro- 
ducing country  and  produces  one-third  of  the  world's  consumption. 

Rates  suggested. — If  a  final  decision  is  made  to  imposs  a  duty  on 
bananas,  the  Government  of  Jamaica  trusts  that  it  will  be  levied  pro 
rata  on  count  bunches  instead  of  as  a  flat  rate  per  stem,  regardless  of 
weight  and  size. 

Remarks. — The  stems  of  Jamaica  bananas  are  small  compared 
with  those  shipped  from  other  countries.  They  are  divided  into 
four  classes : 

(a)  Payable  bunches,  the  average  weight  being  only  48  poundsr 
as  compared  with  70  pounds,  the  weight  of  a  payable  bunch  grown 
in  Central  America, 

(b)  Bunches  having  eight  hands,  counted  by  the  trade  as  being 
three-fourths  of  a  bunch. 

(c)  Bunches  having  seven  hands,  counted  as  one-half  of  a  bunch. 

(d)  Bunches  having  six  hands,  counted  as  one-fourth  of  a  bunch. 
Jamaica  is  the  only  banana-producing  country  in  which  internal 

competition  is  maintained  to  the  resultant  benefit  of  the  consumer. 

The  cordial  trade  relations  between  the  United  States  and  Jamaica 
should  not  be  disturbed. 

PARAGRAPH  737. — BERRIES. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Edwin  M.  Frye.  representing  Maine  blueberry  producers,  Harrington, 
Me. 

Hearings :  Pages  3073-3075. 

Costs  cmd  selling  prices. — The  average  price  of  blueberries  for  the 
last  three  years  has  been  16  cents  per  quart  as  compared  with  6  and 
7  cents  in  1909.  In  1920,  canned  blueberries  sold  at  $9.50  per  dozen 
Xo.  10  cans  as  compared  with  $4.50  in  1909. 

Size  of  industry. — The  estimated  value  of  canned  blueberries  in 
three  Maine  counties  in  1920  was  $1,440,000.  The  farmers  are  just 
learning  to  cultivate  blueberries  successfully. 

Rates  suggested. — The  witness  asks  for  25  per  cent  ad  valorem  on 
canned  blueberries  and  1^  cents  per  pound  on  the  raw. 

Remarks. — A  bushel  of  blueberries  weighs  42  pounds,  and  the  pro- 
posed duty  of  1  cent  per  pound  is  equivalent  to  1^  cents  per  quart. 
The  price 'has  increased  since  1909,  so  that  the  ad  valorem  equivalent 
of  the  proposed  duty  on  raw  berries  is  less. 

Canadian  berries  are  raised  on  Crown  lands  on  which  no  stumpage 
is  charged,  while  blueberry  land  in  Maine  varies  in  value  from  $4 
to  $100  per  acre. 


330  DIGEST   OF   TARIFF   HEARINGS,   H.   R.  7456. 

PARAGRAPH  738.  —  CHERRIES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Hon.  Wesley  L.  Jones,  United  States  Senator  from  Washington. 
FAVORING  LOWER  DUTIES  : 

Mr.  James  A.  Rheinstrom,  representing  the  Rheinstrom  Bros.  Co.,  Cincin- 
nati, Ohio. 

Hearings:  Page  3076. 

Witness  :  Senator  Jones,  of  Washington. 

Rates  suggested.  —  On  cherries,  fresh  or  in  brine,  2  cents  per  pound. 

Hearings  :  Pages  3076-3078. 

Witness  :  Mr.  J.  A.  Rheinstrom,  representing  the  Rheinstrom  Bros. 
Co. 

Costs  and  selling  prices.  —  In  February,  1921,  the  price  of  imported 
preserved  Italian  cherries  was  $3.25  per  gallon  in  50-gallon  barrels. 

Comparability.  —  Foreign  cherries  are  smaller  and  have  a  special 


R(&z$  suggested.  —  The  witness  opposes  the  proposed  duty  of  \\ 
cents  per  pound  on  raw  cherries  —  the  raw  material  of  his  industry  — 
and  suggests  a  duty  on  the  finished  article  of  1  cent  per  pound  and 
35  per  cent  ad  valorem,  as  in  the  Payne-  Aldrich  Act. 

Remarks.  —  It  is  claimed  that  a  duty  on  the  raw  material  will  make 
it  impossible  to  manufacture  maraschino  cherries  in  this  country  in 
competition  with  imports  of  the  finished  product.  Manufacturers 
are  unable  to  obtain  domestic  cherries  of  the  smaller  varieties,  which 
can  be  used  to  better  advantage. 

PARAGRAPHS  740,  745.  746,  748,  AND  749.  —  PRESERVED  FRUITS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  IXUVER  DUTIES  : 

Mr.  Mario  Narizzano.  representing  the  Causse  Manufacturing  &  Importing 
Co.,  packers  of  glac6  fru'ts,  Boundbrook,  N.  J. 

Hearings  :  Pages  3078-3080. 

Costs  and  selling  prices.  —  French  glace  cherries  are  being  imported 
and  sold  at  25  cents  per  pound.  This  is  at  least  7  cents  below  the 
American  cost  of  production. 

Size  of  industry.  —  The  company's  plant  employs  from  75  to  100 
persons. 

Rates  suggested.  —  Fruits  in  brine  to  be  put  on  the  free  list  and  a 
duty  of  at  least  1  cent  per  pound  plus  35  per  cent  ad  valorem  to  be 
put  on  prepared  fruits. 

Remarks.  —  The  witness  indorses  the  stand  of  Mr.  J.  A.  Rheinstrom 
on  cherries.  The  American  glace  fruit  industry  was  able  to  survive 
under  the  duties  of  the  1913  act  only  because  of  European  war  con- 
ditions. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  331 

PARAGRAPH  740. — CITRON  AND  CITRON  PEEL,  ORANGE  AND  LEMON 
PEEL,  CRUDE  OR  IN  BRINE. 

'  *,    .  WITNESS,  AND  INTERESTS  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  R.  U.  Delephena,  representing  R.  U.  Delephena  &  Co.  and  La  Manna, 
Azena  &  Farnan,  New  York  City. 

Hearings :  Pages  1230-1231. 

Witness :  Mr.  R.  U.  Delephena,  representing  R.  U.  Delephena  & 
Co.  and  others. 

Rates  suggested. — The  witness  pointed  out  that  citrons  are  shipped 
in  a  saline  solution  and  when  dried  and  ready  for  use  have  shrunk 
20  per  cent.  Consequently,  a  differential  of  at  least  4  cents  per  pound 
between  the  crude  and  the  finished  product  is  requested,  to  retain  the 
preparation  of  the  finished  product  in  this  country.  The  witness 
thinks  that  paragraph  740  was  intended  to  read : 

Orange  and  lemon  peel,  crude  or  in  brine,  2  cents  per  pound ;  candied  or 
otherwise  prepared  or  preserved,  4  cents  per  pound. 

PARAGRAPH  742. — GRAPES. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

The  New  York  Fruit  Exchange.     (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Almeria  grapes  are  imported  from  Spain  in  air- 
tight barrels  containing  about  40  pounds.  The  cost  of  production 
and  delivery  in  New  York  is  about  $4  per  barrel.  It  is  urged  that  a 
higher  duty  would  restrict  imports.  The  consumer  would  be  forced 
to  pay  luxury  prices  for  an  article  now  within  reach  of  the  masses. 

Remarks. — The  foregoing  summarizes  the  reference  to  grapes  in 
a  lengthy  discussion  of  imported  vegetable  foodstuffs  generally. 

PARAGRAPH  742. — CURRANTS. 

WITNESSES. 
FAVORING  LOWER  DUTIES  : 

The  Dried  Fruit  Association  of  New  York.     (Brief.) 
The  W.  H.  Marvin  Co.,  Urbana,  Ohio.      (Brief.) 

Witness:  The  Dried  Fruit  Association  of  New  York.  (Brief;  no 
appearance  at  hearings.) 

Size  of  industry. — Experiments  in  growing  currants  in  California 
and  in  the  Southern  States  have  met  with  so  little  success  that  buyers 
have  been  unable  to  obtain  samples  and  prices. 

Rates  suggested. — A  reasonable  increase  in  duty  would  be  one-half 
cent  per  pound;  anything  more  would  mean  a  duty  equal  to  50  per 
cent  ad  valorem  if  currants  should  go  back  to  their  prewar  price 
of  4  cents  per  pound. 

Remarks. — The  same  rate  should  apply  to  currants  imported  in 
their  original  condition  and  to  "Greek  cleaned."  The  latter  also 
have  to  be  recleaned  in  the  United  States. 


332  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Hearings :  Pages  3080-3081. 

Witness :  The  W.  H.  Marvin  Co.,  packers  of  cleaned  currants  and 
mincemeat,  Urbana,  Ohio.  (Brief.) 

Costs  and  selling  prices. — The  present  price  of  currants,  c.  i.  'f. 
New  York,  is  10  to  15  cents  per  pound  compared  with  a  prewar  price 
of  4  to  6  cents. 

Size  of  industry. — Currants  are  not  successfully  grown  in  the 
United  States,  although  attempts  to  grow  them  have  been  made  in 
California  and  in  the  Southern  States. 

Rates  suggested. — On  raisins,  3  cents  per  pound;  on  currants, 
in  original  condition,  1^  cents  per  pound ;  cleaned,  in  bulk  packages, 
2  cents  per  pound;  cleaned,  in  cartons  or  shelf  packages,  3  cents  per 
pound. 

Remarks. — The  duty  on  cleaned  currants  should  be  higher  than 
on  uncleaned ;  that  on  package  goods  should  be  still  higher  in  order 
to  protect  domestic  cleaners  and  packers. 

Since,  in  contrast  to  the  case  of  raisins,  there  is  no  domestic  cur- 
rant growing  industry  to  protect,  the  duty  on  currants  should  be 
lower  than  on  raisins.  Currants,  as  well  as  raisins,  are  necessary 
for  satisfactory  mincemeat,  plum  pudding,  fruit  cake,  etc. 

The  proposed  2|  cents  per  pound  will  be  prohibitive  if  currant 
prices  recede  to  the  pre-war  basis. 

PARAGRAPH  743. — LEMONS. 
INTEBEST  REPBESENTED. 

FAVORING  LOWER  DUTIES  : 

Brief  presented  by  the  New  York  Fruit  Exchange. 

Hearings :  Pages  3084-3088. 

Costs  and  selling  prices. — The  average  delivery  cost  of  imported 
lemons  from  Sicily  to  New  York  is  $1.48  per  box  and  to  Indianapolis 
$2.30.  At  present  (August  29,  1921)  California  lemons  are  selling 
at  from  $4.50  to  $5  per  box  and  imported  lemons  at  from  $2.50  to 
$3.50  per  box. 

Rates  suggested. — The  exchange  opposes  the  proposed  increase  in 
duty  from  1£  cents  to  2  cents  per  pound  as  giving  California  pro- 
ducers a  monopoly  and  allowing  them  to  fix  high  prices.  The  duty 
should  not  be  increased  above  75  cents  per  box. 

PARAGRAPH  743. — GRAPEFRUIT. 

WITNESSES,  AND  INTEBESTS  BEPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  John  D.  Potts,  representing  the  Isle  of  Pines  Citrus  Fruit  Growers, 

Glen  Ridge,  N.  J. 

The  Isle  of  Pines  Chamber  of  Commerce,  Nueva  Gerona,  Isle  of  Pines,  West 
Indies. 

Hearings :  Pages  3089-3094. 

Witness :  Mr.  John  D.  Potts. 

Costs  and  selling  prices. — In  1920  the  growers'  cost  of  grapefruit 
delivered  in  New  York  was  $4.21  per  box.  In  the  same  year,  the 
New  York  price  was  $4.85£  per  box,  leaving  a  margin  of  64^  cents 
to  cover  cost  of  fertilizer  and  labor  in  orchard. 


DIGEST   OF   TARIFF    HEARINGS,    H.    R.    745G.  333 

Size  of  industry. — Over  $100,000  invested  by  one  American  in  one 
orchard.  The  total  American  investment  exceeds  $2,000,000. 

Rates  suggested. — The  proposed  duty,  allowing  for  the  20  per  cent 
Cuban  reciprocity  deduction,  equals  56  cents  per  box,  which  would 
act  as  an  embargo. 

Remarks. — The  duty  on  grapefruit  is  not  needed  to  protect  do- 
mestic growers  in  Florida,  because  the  bulk  of  the  imports  comes  in 
during  August,  September,  and  early  October,  before  Florida  begins 
to  ship  in  quantities.  The  Florida  producers  have  a  considerable  ad- 
vantage in  freight  rates  to  New  York  and  Chicago. 

Witness :  The  Isle  of  Pines  Chamber  of  Commerce,  Xueva  Gerona, 
Isle  of  Pines,  West  Indies.  (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — In  1920,  the  cost  of  picking,  packing, 
freight  to  New  York,  and  duty  averaged  about  $3.75  per  box.  The 
cost  of  raising  is  75  cents  per  box  and  the  average  commission  35 
cents,  making  a  total  cost  of  $4.85.  The  average  selling  price  in  1920 
was  $3.50  per  box,  showing  a  loss  of  $1.35  per  box. 

Size  of  industry.— In  1920,  Florida  shipped  5.000,000  boxes  of 
grapefruit  as  compared  with  200,000  from  the  Isle  of  Pines  and 
about  the  same  amount  from  Cuba. 

Rates  suggested. — The  brief  protests  against  the  proposed  duty 
of  1  cent  per  pound,  which  would  mean  an  increase  from  28  to  80 
cents  duty  per  box. 

Remarks. — The  Isle  of  Pines  and  Cuba  grapefruit  is  shipped  from 
six  weeks  to  two  months  before  the  Florida  crop.  As  soon  as  Florida 
begins  to  ship,  the  Isle  of  Pines  stops  shipping  on  account  of  the  duty 
and  high  freight. 

The  proposed  duty  will  be  prohibitive,  so  that  no  revenue  will  be 
derived  from  it. 

PARAGRAPH  743. — LIMES. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  William  J.  Matheson.  New  York.     (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — In  Florida,  wages  are  $2.50  and  $3  per 
day  and  other  things  in  proportion.  The  growers  in  the  West  In- 
dies, the  principal  source  of  imported  limes,  pay  on  an  average  25 
cents  per  day  or  less.  Their  water  transportation  is  cheaper  than, 
domestic  rail  transportation. 

Rates  suggested. — On  limes,  2  cents  per  pound. 

Remarks. — If  a  duty  of  2  cents  per  pound  on  lemons  is  justifiable, 
an  equal  duty  on  limes  is  much  more  so.  That  rate  would  not  be 
prohibitive,  but  would  help  Florida  growers  to  reduce  their  present 
losses. 

PARAGRAPH  744. — OLIVES. 

WITNESS.  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  H.  C.  Newcomb,  representing  the  Spanish  Green  Olive  Importers'  Asso- 
ciation. 

Hearings :  Pages  3094-3098. 

Rates  suggested. — The  rate  on  green  olives  in  brine  should  not 
exceed  15  cents  per  gallon,  having  regard  to  the  welfare  of  the 


334  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

domestic  packing  industry  and  the   aim  to  produce  the   greatest 
revenue. 

Remarks. — There  is  no  domestic  industry  able  to  furnish  either  of 
the  varieties  of  green  olives  imported;  the  witness  regards  the  pro- 
tection asked  for  by  the  California  ripe  olive  industry  as  unfair  to 
American  industry  and  consumers.  Cases  of  poisoning  by  ripe  olives 
have  been  reflected  in  a  reduced  consumption  of  both  ripe  and  green 
olives ;  it  has  not  been  made  plain  that  Spanish  green  olives,  owing 
to  the  different  method  used  in  preserving  them,  are  free  from  this 
danger.  If  the  old,  long-standing  rate  of  15  cents  per  gallon  were 
restored  it  is  estimated  that  it  would  bring  in  $1,000,000  revenue 
from  Spanish  olive  importations. 

PARAGRAPH  746. — PINEAPPLES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  George  McClellan,  representing  the  Hawaiian  Pineapple  Packers'  Asso- 
ciation. 

FAVORING  LOWER  DUTIES  : 

Mr.  W.  A.  Rodenberg,  Representative  from  Illinois,  and  Mr.  Harold  Knut- 

son,  Representative  from  Minnesota.     (Joint  brief.) 
Mr.  Victor  Elting,  representing  the  West  Indies  Fruit  Importing  Co. 

Hearings :  Pages  3105-3107. 

Witness:  Mr.  George  McClellan,  representing  the  Hawaiian  Pine- 
apple Packers'  Association. 

Cost  and  setting  prices.— 'The,  average  wholesale  price  per  crate  is 
$4.50. 

Rate  suggested. — The  rates  to  remain  as  in  the  Fordney  bill  with 
the  addition  of  a  special  provision  for  pineapples  in  crates  or  other 
containers  as  follows:  "Fresh  pineapples  in  crates  or  other  con- 
tainers, 11  cents  per  cubic  foot."  This  rate  would  be  practically 
equivalent  to  $7.50  per  1,000. 

Remarks. — While  agreeing  with  the  representative  of  the  im- 
porters that  a  cubic-foot  provision  for  pineapples  in  crates  would  be 
desirable,  the  witness  maintained  that  the  trade  could  stand  the  pro- 
posed rates. 

Witnesses :  Mr.  W.  A.  Rodenberg,  Representative  from  Illinois, 
and  Mr.  Harold  Knutson,  Representative  from  Minnesota. 

Rates  suggested. — The  duty  on  canned  pineapples,  instead  of  being 
increased  300  per  cent  (to  3f  cents  per  pound)  above  the  present 
duty  of  20  per  cent  ad  valorem,  should  be  reduced.  - 

Remarks. — The  proposed  duty  on  canned  pineapples  was  increased 
to  3f  cents  by  amendment  on  the  floor  of  the  House.  The  principal 
beneficiary  of  this  increase  would  be  the  Hawaiian  Pineapple  Co., 
which  at  the  present  time  is  making  large  profits. 

The  proposed  duty  would  tend  to  give  the  Hawaiian  canners  a 
monopoly  and  increase  the  price  to  consumers.  Not  all  of  the  Ha- 
waiian producers  and  canners  are  in  favor  of  the  increase. 

Hearings :  Pages  3099-3105. 

Witness:  Mr.  Victor  Elting,  representing  the  West  Indies  Fruit 
Importing  Co. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  335 

Size  of  industry. — The  production  of  pineapples  in  1920  and  1921 
was  as  follows : 


Cuba. 

Florida. 

Porto  Rico. 

1920                                                

Crates. 
91S.944 

Crates. 
70,500 

Crates. 
Ho,  000 

1921 

1,010  000 

40,500 

160,000 

Kates  suggested. — Fresh  pineapples  to  be  put  on  the  free  list  or 
else  be  put  back  on  the  basis  of  the  act  of  1913,  with  the  cubic  foot 
and  not  the  piece  as  the  basis. 

Remarks. — The  witness  objects  to  the  piece  basis  of  computing  the 
duty  because  (1)  the  duty  increases  as  the  value  per  crate  decreases, 
(2)  the  cost  of  administration  would  be  excessive,  and  (3)  the  neces- 
sary delay  would  involve  loss  by  spoilage.  The  proposed  rate,  if 
applied  to  the  1921  crop,  would  show  an  average  duty  of  $0.256  per 
crate  as  against  $0.1176  under  the  act  of  1913.  This  would  be  an 
increase  of  117f  per  cent,  which  would  discourage  the  industry  and 
seriously  affect  American  transportation  interests,  manufacturers  of 
supplies,  importers,  dealers,  and  the  consuming  public.  The  Porto 
Rican  and  Florida  crops  are  not  adequate  for  American  needs. 

PARAGRAPH  748. — GLACE  FRUITS. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Townsend's   California   Glac§    Fruits   Corporation,    San    Francisco,    Calif. 
(Brief;  no  appearance  at  hearings.) 

Costs  and  selling  pieces. — French  labor  is  much  cheaper  than  Cali- 
fornian;  wages  of  women  in  France  are  about  40  cents  per  day  of 
10  hours,  compared  with  domestic  wages  of  $16  per  week  of  48  hours. 
Wages  of  men  in  France  are  80  to  85  cents  per  day  of  10  hours,  as 
against  $4.50  for  8  hours  in  California.  The  rail  rate  from  Cali- 
fornia to  Xew  York  is  $6.16^  per  hundred  weight,  as  compared  with 
about  $1.25  per  hundred  weight  from  France. 

Rates  suggested. — On  glace  fruits,  8  to  10  cents  per  pound. 

PARAGRAPH  750;  AND  ALSO  PARAGRAPH  50.— FLAXSEED  AND  LIXSEED 

OIL. 

WITNESS. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Spencer  Kellog  &  Sons  (Inc.),  Cincinnati,  Ohio.     (Brief;  no  appearance  at 
hearings. ) 

Costs  and  selling  prices. — Average  operating  costs  in  the  best 
equipped  mills  in  this  country  are  50  cents  per  bushel,  as  compared 
with  25  cents  per  bushel  in  Europe.  This  means  a  difference  in  cost 
of  10  cents  per  gallon  of  oil. 

Size  of  industry. — In  1902—1909,  the  average  acreage  of  flaxseed  in 
this  country  was  2,750,000.  In  1914-1920  this  had  declined  to  1,684,- 
000,  while  the  requirements  of  oil  had  risen  from  40,000,000  gallons 


336  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

to  70,000,00  gallons?  The  annual  volume  of  business  approximates 
$100,000,000. 

Rates  suggested. — On  linseed  oil,  25  cents  per  gallon. 

Remarks. — Figuring  2^  gallons  of  oil  per  bushel  of  seed,  the  pro- 
posed tariff  of  30  cents  per  bushel  would  be  equivalent  to  12  cents  per 
gallon  on  oil.  To  this  should  be  added  10  cents  for  the  difference  in 
labor  costs  and  3.28  cents  for  the  advantage  in  ocean  freights  from 
Europe. 

Unless  a  proper  adjustment  is  made  between  the  duties  on  the  oil 
and  on  the  seed,  the  fiaxseed-crushing  industry  is  doomed. 

PARAGRAPHS  751  AND  752. — BULBS,  SEEDLINGS,  ETC. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  James  Hutchinson,  representing  the  Society  of  American  Florists  and 
Ornamental  Horticulturists;  address,  New  York  City. 

Hearings:  Pages  3108-3110. 

Comparability. — The  witness  thinks  that  the  American-valuation 
plan  would  be  impracticable  in  this  connection  because  of  the  lack 
of  similar  domestic  products. 

Rates  suggested. — Paragraph  751  should  be  changed  to  read: 

Tulip  and  narcissus  bulbs  and  lily  of  the  valley  pips,  $2  per  1,000;  hyacinth 
bulbs.  $4  per  1,000;  lily  of  the  valley  clumps,  $10  per  1,000;  crocus  bulbs,  $1 
per  1,000 ;  lily  bulbs,  $6  per  1,000 ;  gladioli  bulbs,  $5  per  1,000 ;  all  other  bulbs, 
roots,  root  stocks,  corns,  tubers,  and  herbaceous  perennials,  which  are  imported 
for  horticultural  purposes,  20  per  cent  ad  valorem ;  cut  flowers,  fresh  or  pre- 
served. 25  per  cent  ad  valorem. 

And  752  changed  to  read: 

Seedlings  and  cuttings  of  Manetti,  Multiflora,  Briar,  Rugosa,  and  other  rose 
stocks,  3  years  old  or  less,  $2  per  1,000  stocks;  rose  plants,  budded,  grafted, 
or  own  roots,  $40  per  1,000  plants;  cuttings,  seedlings,  or  grafted  on  budded 
plants  of  other  deciduous  or  ornamental  or  evergreen  trees,  shrubs,  or  vines, 
including  greenhouse  plants,  20  per  cent  ad  valorem. 

Above  all,  the  duty  should  not  be  ad  valorem  when  it  can  be  made 
specific. 

Remarks. — It  is  claimed  that  the  proposed  change  would  bring  in 
a  larger  revenue  and  would  not  embarrass  the  industry  as  much  as 
the  rates  and  wording  of  the  Fordney  bill. 

NUTS. 

PARAGRAPH  754. — ALMONDS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  T.  C.  Tucker,  representing  the  California  Almond  Growers'  Exchange; 
address,  San  Francisco,  Calif. 

FAVORING  LOWER  DUTIES  : 

Mr.  G.  W.  R.  Wallace,  representing  the  Associated  Shelled  Nut  Interests; 
address,  Chicago,  111. 

Hearings:  Pages  3111-3135. 

Witness :  Mr.  T.  C.  Tucker.  San  Francisco,  Calif. 
Costs  and  selling  prices.— In  1920  the  cost  of  production  in  Cali- 
fornia of  unshelled  almonds,  including  interest  on  capital,  was  19.4 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    74-56.  337 

cents  per  pound,  this  entailing  a  loss  of  9.4  cents  per  pound  en  some 
varieties  and  12  cents  on  others.  In  Europe,  costs  are  3.6  cents  per 
pound.  In  Spain,  labor  costs  25  to  35  cents  per  day  and  freight  is 
one-third  to  one- fourth  of  domestic  rates.  In  another  place  in  his 
testimony  the  witness  gave  production  cost  in  1920  as  just  over  19 
cents  per  pound  plus  freight  2£  cents;  anything  in  addition  to  that 
in  price  would  be  profit.  In  1920,  California  growers  sold  part  of 
their  crop  for  10  cents  per  pound  for  some  varieties  and  7  cents  for 
others. 

Size  of  industry. — Membership  of  the  association,  representing  85 
per  cent  of  the  almond  crop,  is  nearly  4,000.  More  than  100,000 
acres  of  almonds  are  planted,  about  three-fourths  not  yet  in  bearing. 
The  investment  is  something  over  $50,000,000;  about  20,000  white 
laborers  employed  seasonally.  The  average  annual  production  in 
California  prior  to  1919  was  about  2,000  tons ;  in  1919,  7,500  tons,  and 
in  1920.  6,000  tons. 

Kates  suggested. — Five  cents  per  pound  on  unshelled  almonds  and 
15  cents  on  shelled  are  claimed  as  being  absolutely  necessary  for  the 
protection  of  the  industry.  The  difference  in  the*  cost  of  production 
here  and  in  Europe  is  8  cents  on  unshelled  almonds  and  24  cents  on 
shelled.  Eighty  per  cent  of  the  money  spent  on  almonds  is  for 
shelled. 

tiemarks. — The  present  domestic  bearing  is  sufficient  to  supply  20 
to  25  per  cent  of  the  domestic  consumption.  Domestic  production 
will  be  able  to  supply  the  entire  domestic  demand  when  present  acre- 
age comes  into  bearing.  The  total  Old-World  production  is  estimated 
at  750.000.000  pounds. 

The  association  also  submitted  an  illustrated  publication  entitled 
"Shall  the  Almond  Industry  Perish"?  together  with  letters  and 
telegrams  supplementing  the  arguments  used. 

Hearings:  Pages  3135-3138. 

Witness:  Mr.  G.  W.  R.  Wallace,  representing  the  Associated 
Shelled  Xut  Interests. 

Itates  suggested. — On  unshelled  almonds.  3  cents  per  pound :  on 
shelled.  6  cents. 

Remftfkg. — Importers  are  particularly  interested  in  the  rate  on 
shelled  almonds  and  walnuts  since  most  are  thus  imported  for  use  by 
confectioners.  California  almonds  are  too  woody  and  lacking  in 
flavor  to  permit  their  use  in  confectionery,  while  California  walnuts 
are  the  best  in  the  world. 

PARAGRAPHS  754,  755,  AND  758. — ALMONDS,  FILBERTS.  AND  WALNUTS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  E.   B.  Hutchinson,  representing  the  Dried  Fruit  Association  of  New 

York,  New  York  City. 

Mr.  Walter  C.  Hughes,  representing  the  National  Confectioners'  Associa- 
tion, Chicago,  111. 

Hearings:  Pages  3139-3153. 

Witness:  Mr.  E.  B.  Hutchinson,  New  York  City,  N.  Y. 
Costs  and  setting  prices. — The  average  price  of  shelled  almonds  in 
1920  was  not  more  than  30  cents  per  pound. 


338  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Size  of  industry. — The  estimated  capital  investment  of  manufac- 
turing confectioners,  chocolate  manufacturers,  bakers,  and  others 
using  almonds,  is  $750.000,000,  as  compared  with  $50,000.000  invested 
in  growing  almonds.  The  manufacturers  employ  420.000  persons,  as 
compared  with  50,000  employed  by  the  growers. 

Rates  suggested. — Almonds  in  the  shell,  4  cents  per  pound ;  shelled 
almonds,  6  cents;  filberts  in  the  shell,  3  cents;  shelled  filberts,  6  cents. 
These  rates,  while  about  a  50  per  cent  increase  over  present  rates., 
would  not  restrict  imports  and  would  provide  a  considerable  increase 
in  revenue.  Excessive  rates  of  duty  would  tend  to  lower  importations 
and  to  decrease  revenues. 

Remarks. — The  witness  claimed  that  domestic  producers  could  not 
produce  nuts  either  in  sufficient  quantity  or  of  high  enough  quality 
to  supply  domestic  requirements  in  shelled  walnuts  and  almonds. 
He  presented  various  arguments  in  opposition  to  California  demands 
for  higher  duties.  It  is  claimed  that  California  produces  only  enough 
to  supply  one-ninth  of  the  domestic  consumption  of  almonds. 

The  association  submitted  a  photographic  copy  of  a  letter  ad- 
dressed by  Mr.  J.  C.  Tucker,  manager  of  the  California  Almond 
Growers'  Exchange,  to  Bevan  &  Co.,  Malaga,  Spain.  The  letter 
stated,  in  effect,  that  California  does  not  deal  to  any  extent  in  shelled 
almonds,  this  being  held  to  prove  that  there  is  no  justification  for 
an  increase  in  the  duty  on  shelled  almonds  from  4  to  15  cents  per 
pound. 

Hearings :  Pages  3153-3158. 

Witness :  Mr.  Walter  C.  Hughes,  representing  the  National  Con- 
fectioners' Association,  Chicago,  111. 

Size  of  industry. — The  association  represented  includes  725  manu- 
facturers of  candy.  The  investment  in  the  industry  is  about  $750,- 
000,000. 

Comparability. — California  shelled  almonds  and  Avalnuts  have 
proved  unsatisfactory  to  confectioners. 

Rates  suggested. — On  almonds,  not  shelled.  4  cents ;  shelled,  6  cents 
per  pound  On  walnuts,  not  shelled,  3  cents  per  pound;  shelled,  6 
cents  per  pound. 

Remarks. — Even  if  the  production  of  almonds  in  California  is  in- 
creased in  the  next  10  years  in  the  same  proportion  as  in  the  past, 
the  1929-30  crop  will  amount  to  only  20,000,000  pounds,  which  is 
far  short  of  domestic  requirements. 

\rery  few  shelled  almonds  are  produced  in  California,  most  of  the 
California  crop  being  sold  in  the  shell. 

PARAGRAPH  756. — COCONUTS. 

WITNESSES,  AM)  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Franklin  Baker,  jr..  representing  manufacturers  of  domestic  shredded 

coconut. 
The  Coconut  Growers'  Association  of  Porto  Rico. 

FAVORING  LOWER  DUTIES  : 

Mr.  E.  W.  Broom,  representing  importers  of  Ceylon  desiccated  coconut. 

Hearings :  Pages  3160-3164. 

Witness:  Mr.  F.  Baker,  jr.,  representing  manufacturers  of  domestic 
shredded  coconut. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.   74-56.  339 

Costs  and  selling  prices — The  witness  gave  his  labor  charge  as  3| 
cents  per  pound :  his  total  factory  charges.  5  cents  per  pound,  and 
total  cost,  15  cent's  per  pound.  The  present  duty-paid  price  of  im- 
ported shredded  coconut  is  11^  cents  and  of  the  domestic  16  cents.  It 
is  only  because  of  the  better  quality  of  the  domestic  that  producers 
secure  any  business. 

Size  of  industry. — 'Several  million  dollars  are  invested  in  the  in- 
dustry and  nearly  2.000  persons  are  employed.  The  United  States 
imported,  in  1920,  90,000.000  pounds  of  nuts  and  about  33,000,000 
pounds  of  desiccated  nuts. 

Rates  suggested. — Six  cents  per  pound  on  imported  shredded  coco- 
nut, without  being  compelled  to  pay  a  duty  on  coconuts. 

Remarks. — The  lower  cost  of  production  in  Ceylon  results  from 
cheaper  raw  material  and  labor.  It  takes  about  3  nuts  to  make  1 
pound  of  shredded  coconut,  hence  the  request  for  an  addition  to 
the  specific  protective  duty  of  three  times  the  duty  on  the  raw 
material. 

Witness:  The  Coconut  Growers'  Association  of  Porto  Rico. 
(Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — From  40  to  50  trees  are  planted  per  acre. 
When  in  full  bearing,  the  average  value  of  the  production  per  tree 
is  about  50  cents.  The  cost  of  bringing  an  acre  into  bearing  has 
advanced  from  $100  in  1913  to  $250  to-day.  The  average  gross  return 
per  acre  is  about  $50,  which  leaves  practically  nothing  as  a  return  on 
investment. 

Size  of  industry. — In  Porto  Rico,  over  9,000  acres  are  planted  in 
coconuts,  80  per  cent  of  which  have  been  developed  on  plots  of  from 
40  to  50  acres.  The  present  production  in  Porto  Rico  is  about 
17,000,000,  all  of  which  are  marketed  in  the  United  States.  This  is 
about  one-fourth  of  all  the  coconuts  in  the  shell  sold  here. 

Rates  suggested. — On  coconuts  in  the  shell.  2  cents  each. 

Remark*. — Workers  in  Porto  Rico  have  been  organized  by  the 
American  Federation  of  Labor,  which  has  resulted  in  higher  wages. 
An  eight-hour  law  was  passed,  also  a  child-labor  law  prohibiting 
employment  of  children  under  16  years  of  age.  Porto  Rican  growers 
must  compete  with  those  in  other  West  Indian  islands  and  South 
American  countries  where  land  and  labor  are  cheaper.  Because  of 
coastwise  shipping  laws,  freights  are  much  higher  from  Porto  Rico 
than  from  competing  countries ;  for  example,  the  rate  from  Trinidad 
to  Xew  York  is  $3  per  1,000  nuts,  as  compared  with  $10  from  San 
Juan  to  Xew  York. 

Hearings :  Pages  3159-3160. 

Witness:  Mr.  E.  W.  Broom,  representing  importers  of  Ceylon 
desiccated  coconut. 

Costs  and  selling  prices. — While  conceding  that  wages  are  lower 
in  Ceylon,  the  witness  stated  that  labor  is  much  less  efficient  there 
and  that  less  labor-saving  machinery  is  used  than  in  the  United 
States.  The  current  market  value  of  Ceylon  shredded  coconut  is 
about  9  cents  per  pound,  in  bond  ex  dock  New  York. 

Size  of  industry. — About  1,000  persons  are  employed  in  the  domestic 
shredding  factories. 

Rates  suggested. — A  duty  of  3  cents  per  pound,  which  would 
represent  a  50  per  cent  increase  over  current  rates.  ,  This  would  meet 


340  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

the  need  for  revenue,  but  a  duty  as  high  as  4£  cents  (as  in  the  bill) 
would  probably  work  hardships  and  might  decrease  revenues  by  cut- 
ting down  imports. 

PARAGRAPH  757. — PEANUTS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Neyle  Colquitt,  representing  the  United  Peanut  Association  of  America, 
Washington,  D.  C. 

Mr.  P.  D.  Bain,  representing  the  Peanut  Association  of  America.  Nor- 
folk, Va. 

Mr.  Edward  Eve,  Charleston,  S.  C. 

Mr.  J.  B.  Pinner,  representing  the  peanut  industry  of  Suffolk,  Va. 

FAVORING  LOWER  DUTIES  : 

Mr.  John  B.  Gordon,  representing  peanut  crushers  and  vegetable  oil  re- 
finers, Alexandria,  Va. 

Mr.  W.  H.  Kelly,  representing  the  Kelly  Co. 
The  Foreign  Commerce  Association  of  the  Pacific  Coast.     (Brief.) 

Hearings :  Pages  3179-3180. 

Witness:  Mr.  Neyle  Colquitt,  representing  the  United  Peanut 
Association  of  America. 

Costs  and  selling  prices. — The  average  production  cost  of  peanuts 
in  this  country  is  about  9£  cents  per  pound. 

Size  of  industry. — The  investment  in  farm  lands  and  implements 
used  for  growing  peanuts  is  approximately  $100,000.000,  and  about 
131,500  persons  are  employed. 

Rates  suggested. — Since  the  cost  of  cleaning  and  preparing  un- 
shelled  peanuts  for  the  market  is  about  equal  to  the  cost  of  shelling,  the 
duty  on  shelled  and  unshelled  peanuts  should  be  the  same.  The  asso- 
ciation asks  4  cents  per  pound  on  shelled  and  unshelled  peanuts  and 
5  cents  on  products,  including  peanut  butter,  peanut  confections,  etc., 
of  peanuts  not  otherwise  specified. 

Hearings :  Pages  3180-3188. 

Witness :  Mr.  P.  D.  Bain,  representing  the  Peanut  Association  of 
America. 

Costs  and  selling  prices. — The  average  farm  cost  of  domestic  pea- 
nuts is  from  7£  to  8  cents  per  pound,  and  the  wholesale  price  is  from 
9  to  9^  cents  delivered  in  the  markets. 

Rptes  suggested. — Four  cents  per  pound  on  shelled  and  unshelled 
peanuts  and  5  cents  on  peanut  products.  The  cost  of  cleaning  and 
preparing  peanuts  for  market  being  the  same  as  the  cost  of  shelling, 
the  rate  should  be  the  same  on  each. 

Remarks. — As  only  a  small  percentage  of  imported  peanuts  is 
used  for  oil,  while  there  is  competition  between  crushers  and  shellers 
for  domestic  peanuts,  imports  of  peanut  oil  and  of  peanuts  for 
crushing  would  compete  with  domestic  peanuts.  There  are  approxi- 
mately 9,000,000  acres  in  the  South  available  for  peanut  production. 
The  peanut  is  especially  desirable  in  the  boll  weevil  sections  to 
replace  cotton. 

Hearings :  Pages  3198-3200. 
Witness:  Mr.  Edward  Eve,  Charleston,  S.  C. 

Rates  suggested. — Four  and  a  half  cents  per  pound  on  peanuts 
would  be  adequate. 


DIGEST  OF  TARIFF   HEARINGS,  H.   R.   1456.  341 

Remarks. — The  arguments  of  the  refiners  and  importers  for  free 
importation  of  oriental  vegetable  oils  and  oil  materials  are  not  valid. 
Free  imports  would  depress  both  the  European  and  domestic 
markets. 

Hearings :  Pages  3194-3198. 

Witness:  Mr.  J.  B.  Pinner,  representing  the  peanut  industry, 
Suffolk,  Va. 

Costs  and  selling  prices. — Prices  have  been  so  low  as  to  cause  great 
distress  among  peanut  producers. 

Size  of  industry. — About  110,000  farmers  are  producers  of  peanuts 
and  about  10,000  are  engaged  in  milling.  The  investment  amounts 
to  about  $108,000,000.  Production  in  Virginia  in  1920  was  4,000,000 
bags  (70  to  85  pounds  per  bag).  The  total  production  in  the  United 
States  is  between  30,000,000  and  40,000,000  bushels. 

Rates  suggested. — Four  cents  per  pound  for  shelled  and  unshelled 
peanuts.  Xo  difference  in  rates  is  asked,  because  the  cost  of  putting 
shelled  and  unshelled  peanuts  on  the  market  is  the  same. 

Remarks.— Imports  in  1920  were  120,000,000  pounds  of  shelled 
peanuts  and  12,000,000  pounds  of  unshelled. 

A  great  portion  of  the  South  has  been  forced  into  peanut  produc- 
tion by  the  ravages  of  the  boll  weevil. 

Hearings :  Pages  3168-3179. 

Witness:  Mr.  J.  B.  Gordon,  representing  peanut  crushers  and 
vegetable-oil  refiners. 

Rates  suggested. — The  proposed  rates  of  3  cents  on  unshelled  and 
4  cents  on  shelled  peanuts  would  prohibit  their  importation  for 
crushing.  There  should  be  a  provision  for  free  importation  of 
peanuts  to  be  used  for  crushing. 

Remarks. — Four  cents  on  shelled  peanuts  would  mean  10  cents  per 
pound  on  the  resultant  oil.  as  against  the  normal  value  of  only  5| 
to  7  cents.  Free  importation  of  peanuts  for  crushing  would  not 
adversely  affect  the  domestic  grower,  because  only  a  very  small  per- 
centage of  domestic  nuts  is  crushed,  growers  being  able  to  get  more 
by  selling  nuts  for  edible  purposes.  If  the  domestic  crusher  is  put 
out  of  business  it  would  be  bad  for  the.  grower,  who  would  lose  part 
of  his  market  for  a  surplus  in  years  of  large  crop.  Domestic  crush- 
ers can  not  pay  as  high  prices  for  domestic  peanuts  as  can  the 
peanut  shellers.  as  peanut  oil  is  practically  interchangeable  with 
cottonseed  oil.  The  latter  is  a  by-product  and  can  be  sold  very 
cheaply. 

Hearings :  Pages  3164-3167. 

Witness :  Mr.  W.  H.  Kelly,  representing  the  Kelly  Co. 

Rates  suggested. — The  proposed  rates  of  3  cents  on  unshelled  pea- 
nuts and  4  cents  on  shelled  would  prohibit  all  but  a  few  imports. 

Remarks. — Most  of  the  peanuts  imported  for  food  purposes  are 
large  selected  28-30  count  Chinese  peanuts;  not  enough  of  these 
are  grown  here  to  satisfy  the  demand  for  the  large  kernels  used  in 
the  manufacture  of  peanut  brittle  and  peanut  butter. 

Hearings :  Pages  3188-3194. 

Witness :  The  Foreign  Commerce  Association  of  the  Pacific  Coast. 
(Brief.) 

77134_22 23 


342  DIGEST  OF  TARIFF   HEARINGS,   H.  B.   7456. 

Costs  and  selling  prices. — There  is  but  little  difference  in  the  de- 
livered price  of  foreign  and  domestic  nuts.  The  oriental  peanuts  in 
June,  1920,  cost  7|  cents  c.  i.  f.  Pacific  ports  and,  with  duty  added, 
8  cents ;  as  much  as  domestic  peanuts  in  the  South. 

Comparability. — American  buyers  prefer  the  domestic  peanuts  to 
Japanese. 

Rates  suggested. — On  peanuts,  not  shelled,  three-eighths  of  1  cent 
per  pound;  shelled,  three-fourths  of  1  cent. 

Remarks. — The  domestic  production  has  never  been  sufficient  to 
meet  the  rapidly  expanding  requirements. 

Losses  to  domestic  producers  have  been  due  to  general  conditions 
of  supply  and  demand ;  not  to  the  competition  of  imports. 

The  proposed  duty  is  virtually  an  embargo. 

By  giving  peanut  products  a  lower  duty  than  raw  products  the 
proposed  rate  will  seriously  discriminate  against  American  manu- 
facturers. 

PARAGRAPH   758. WALNUTS  AND  PECANS. 

WITNESS,   AND   INTEREST   REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  C.  Thorpe,  representing  the  Walnut  Protective  League. 
FAVORING  LOWER  DUTIES  : 

The  Foreign  Commerce  Association  of  the  Pacific  Coast.     (Brief.) 

Hearings :  Pages  3200-3205. 

Costs  and  selling  prices. — The  contention  for  a  higher  duty  is 
based  solely  on  differences  in  labor  costs  here  and  in  competing 
countries.  The  labor  cost  here  is  9.73  cents  per  pound;  in  France, 
2£  cents;  in  China,  slightly  over  one-half  cent.  Freight  charges 
of  domestic  producers  to  eastern  consuming  centers  are  three  times 
those  on  foreign  nuts. 

Size  of  industry. — The  investment  in  the  industry  exceeds  $110,- 
000,000.  The  annual  crop  value  is  over  $12,000,000.  More  than 
90,000  acres  are  planted  to  walnuts,  of  which  65,000  acres  are  in 
bearing.  Domestic  production  supplies  over  70  per  cent  of  the 
country's  consumption  of  unshelled  walnuts,  California's  produc- 
tion in  1920  being  56,000,000  pounds  as  against  a  total  importation 
of  38,700,000  pounds,  shelled  and  unshelled. 

Rates  suggested. — Four  cents  a  pound  on  unshelled,  12  cents  on 
shelled,  these  being  the  lowest  under  which  the  industry  can  con- 
tinue on  a  prosperous  basis. 

Remarks. — Unshelled  walnuts  comprise  90  per  cent  of  the  do- 
mestic production.  There  are  200,000  acres  in  California,  now  plant- 
ing annual  crops,  ideally  suited  for  the  production  of  walnuts. 
"  A  tree  has  to  be  10  years  old  before  it  makes  what  would  be 
considered  a  profitable  production."  The  unshelled  walnut  is,  and 
will  always  be,  the  principal  product. 

Hearings:  Pages  3205-3209. 

Witness :  The  Foreign  Commerce  Association  of  the  Pacific  Coast. 
(Brief.) 

Costs  and  selling  prices. — Foreign  growing  costs  are  less  than 
domestic,  but  the  marketing  costs  are  so  much  more  that  foreign 
nuts  delivered  in  American  markets  cost  nearly  as  much  as  domestic. 

Size    of    industry. — Domestic    production    has    increased    from 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  343 

18.700,000  pounds  in  1909  to  56.096.000  pounds  in  1919.  but  is  still 
short  of  requirements.  Imports  in  1919  were  21,000.000  pounds. 

Comparability, — The  domestic  nuts  are  clean  looking,  thin  shelled, 
full  meated,  and  fine  flavored  and  command  a  premium  over  the 
imported.  The  latter  are  hard  shelled  and  not  as  clean. 

Rates  suggested. — The  association  urges  that  the  duty  be  not 
higher  than  &  cents  per  pound  on  unshelled  walnuts  and  4  cents  on 
shelled. 

Remarks. — The  imported  nuts  cater  to  the  demands  of  confec- 
tioners, bakers,  and  manufacturers,  who  can  not  afford  to  pay  the 
higher  prices  for  domestic  nuts. 

PARAGRAPHS  760,  763,  AND  1620.— OIL  SEEDS. 
WITNESSES,   AND   INTERESTS   REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Hon.  Edwin  F.  Ladd,  United  States  Senator  from  North  Dakota. 
Mr.  Charles  W.  Holnmn.  representing  the  National  Board  of  Farm  Organi- 
zations, Washington,  D.  C. 

FAVORING  LOWER  DUTIES  : 

Mr.  P.  S.  Grogan,  representing  the  Interstate  Cottonseed  Crushers' 
Association. 

Mr.  R.  F.  Crow,  representing  the  Interstate  Cottonseed  Crushers'  Asso- 
ciation. 

The  Linseed  Crushers'  Committee.     (Brief.) 

Mr.  J.  J.  Lawton,  representing  the  Interstate  Cottonseed  Crushers'  Associa- 
tion. 

Hearings :  Pages  3209-3219. 

Witness :  Hon.  Edwin  F.  Ladd,  United  States  Senator  from  North 
Dakota. 

Costs  and  selling  prices. — The  average  farm  price  of  flaxseed  in- 
creased from  $1.15  per  bushel  in  1912  to  $1.39  in  1919  and  dropped 
to  $1.77  in  1920. 

Size  of  industry.— In  1920,  23.391.000  bushels  of  flaxseed  were 
produced ;  in  1919,  8.427,000  bushels. 

Rates  suggested. — On  flaxseed,  40  cents  per  bushel;  on  linseed  oil, 
3^  cents  per  pound.  (See  abstract  under  paragraph  50.) 

Remarks. — The  proposed  rates  are  necessary  to  maintain  flaxseed 
production  in  the  United  States,  so  that  the  domestic  oil,  paint, 
varnish,  and  linoleum  industries  will  not  be  dependent  upon  uncer- 
tain foreign  supplies  of  raw  material. 

Reducing  the  duty  on  flaxseed,  and  to  a  greater  extent  on  linseed 
oil,  has  made  it  possible  for  foreign  manufacturers  to  export  oil  to 
this  country  at  lower  prices  than  American  farmers  and  linseed-oil 
manufacturers  can  produce  it.  This  reduction  of  duties  has  been 
the  principal  cause  of  smaller  crops.  The  other  important  cause  has 
been  the  prevalence  of  "  flaxseed  wilt."  This  has  been  overcome. 

Hearings:  Pages  5154-5162. 

Witness:  Mr.  Charles  W.  Holman.  representing  the  National 
Board  of  Farm  Organizations,  Washington,  D.  C. 

Rates  suggested. — Three-fourths  of  a  cent  per  pound  on  cotton 
seed  and  soya  beans:  2  cents  per  pound  on  copra. 


344  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

Remarks. — Exports  of  soya  beans  and  soya-bean  oil  in  terms  of 
beans  from  Manchuria  amounted  in  1911  to  1,724,000  short  tons  and 
in  1919  to  2,306,000  tons. 

Soya  beans  and  soya-bean  oil  were  diverted  to  Europe  a  year  be- 
fore the  emergency  act  was  in  force.  This  disproves  the  conten- 
tion that  the  emergency  act  has  caused  the  withdrawal  of  American 
buyers  from  the  Orient  and  the  consequent  lowering  of  prices  of 
oils  there. 

Hearings:  Pages  5143-5154. 

Witness:  Mr.  Charles  W.  Holman,  representing  the  National  Milk 
Producers'  Federation  and  the  vegetable  oils  tariff  committee  of 
the  National  Board  of  Farm  Organizations.  (Brief.) 

Rates  suggested. — On  copra,  2  cents  per  pound;  on  soya  beans, 
three  fourths  of  1  cent  per  pound,  and  on  cotton  seed,  one-half  of  1 
cent  per  pound. 

Remarks. — Because  of  the  interchangeable  character  of  vegetable 
oils  practically  the  entire  supply  of  raw  materials  can  be  obtained  in 
this  country.  At  present,  large  quantities  of  cotton  seed  that  could 
be  used  for  crushing  are  used  directly  for  fertilizer. 

(See  abstract  under  oil  paragraphs.) 

Hearings :  Pages  5162-5163. 

Witness:  Mr.  P.  S.  Grogan,  representing  Interstate  Cottonseed 
Crushers'  Association. 

Size  of  industry. — The  cottonseed  crushing  industry  has  grown 
until  in  some  years  the  crushers  pay  $350,000,000  for  the  seed. 

Remarks. — The  association  previously  favored  duties  on  vegetable 
oils  and  oil  bearing  materials  but  now,  in  the  light  of  experience 
under  the  emergency  tariff,  it  favors  free  trade. 

Hearings :  Pages  5163-5170. 

Witness:  Mr.  R.  F.  Crow,  representing  the  Interstate  Cottonseed 
Crushers'  Association. 

Size  of  industry. — In  normal  times  the  annual  production  of  crude 
cottonseed  oil  will  range  from  1,200,000,000  to  1,800,000,000  pounds. 

Rates  suggested. — The  association  desires  that  vegetable  oils  and 
oil-bearing  materials  be  put  on  the  free  list,  especially  soya-bean  oil, 
peanut  oil,  cottonseed  oil,  coconut  oil,  palm  oil,  palm  kernel  oil, 
sesame  oil,  copra,  soya  beans,  peanuts,  and  palm  kernels. 

Remarks. — Cottonseed  oil  is  produced  in  such  quantities  that  it  is 
essential  that  an  export  market  be  maintained  for  a  surplus  ranging 
from  10  to  25  per  cent. 

Although  the  total  amount  of  cotton  seed  produced  depends  upon 
the  demand  for  cotton,  the  proportion  of  seed  delivered  to  the  crush- 
ing mills  varies  with  the  price  from  63  to  85  per  cent.  Crushers  are 
thus  interested  in  a  reasonably  high  price  for  seed. 

Duties  on  oriental  oils  would  destroy  the  European  market  for  the 
cottonseed-oil  surplus.  It  wrould  eliminate  American  buyers  from 
oriental  markets  and  allow  European  buyers  to  get  cheaper  oils  to 
compete  with  the  American  cottonseed-oil  surplus  in  Europe.  If 
American  buyers  can  import  freely,  these  foreign  oils  will  be  taken 
out  of  edible-oil  channels  and  into  industrial  channels. 

The  withdrawal  of  American  buyers  from  the  Orient  allowed 
European  monopoly  interests  to  act  in  concert  in  forcing  down  prices. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  345 

Witness:  The  linseed  crushers'  committee.  (Brief;  no  appearance 
at  hearings.) 

Rates  suggested. — If  a  duty  of  30  cents  per  bushel  be  put  on  flax- 
seed,  the  crushers  ask  that  the  duty  on  oil  be  25  cents  per  gallon. 

Hearings :  Pages  5170-5173. 

Witness :  Mr.  J.  J.  Lawton.  representing  the  Interstate  Cottonseed 
Crushers'  Association. 

Size  of  industry.— In  1920  the  South  produced  1,141,000,000  pounds 
of  refined  cottonseed  oil.  This  constitutes  47  per  cent  of  the  total 
production  of  fats  in  the  United  States. 

Rates  suggested. — Vegetable  oils  and  oil-bearing  materials  to  be 
put  on  the  free  list. 

Remarks. — The  United  States  produces  more  cottonseed  oil  than 
there  is  demand  for  in  the  country.  To  maintain  a  free  market  in 
Europe  for  this  surplus,  it  is  necessary  to  have  free  trade  in  vegetable 
oils. 

PARAGRAPHS  760  AND  50,  AND  SECTION  316. — OILS,  SEEDS,  ETC. 

Brief  on  flaxseed  and  linseed  oil,  prepared  by  the  Bureau  of  Raw 
Materials  for  American  Vegetable  Oils  and  Fats  Industries,  pre- 
sented in  behalf  of  paint  and  varnish  manufacturers. 

Hearings :  Pages  3219-3226. 

Rates  suggested. —  (1)  That  section  316  be  so  amended  that  the 
rates  of  duty  imposed  on  flaxseed  and  other  oil-bearing  seeds  in 
paragraph  760  be  made  positive  and  definite  by  the  elimination  of 
the  provision  for  drawback  on  the  export  of  oil  cake;  (2)  that  the 
duty  on  flaxseed  in  paragraph  760  be  reduced  from  25  to  20  cents 
per  bushel;  (3)  that  the  duty  on  linseed  oil  in  paragraph  50  be 
reduced  from  2|  cents  per  pound  to  12  cents  per  gallon. 

Remarks. — A  bushel  of  flaxseed  will  yield  about  2^  gallons  of 
linseed  oil.  Since  the  United  States  is  on  an  exporting  basis  in 
oil  cake,  the  duty  on  2-}  gallons  of  linseed  oil  should  equal  the  duty 
on  a  bushel  of  flaxseed.  Consequent!}^  in  order  to  protect  the 
American  flax  grower  with  a  rate  of  10  cents  per  gallon  on  oil  con- 
tent, the  rate  on  flaxseed  should  be  25  cents  per  bushel. 

Under  section  316  of  the  bill,  if  oil  cake  derived  from  the  extrac- 
tion of  linseed  oil  from  foreign  flaxseed  were  exported,  a  drawback 
would  be  allowed  on  the  value  of  the  oil  cake,  which  would  mean  a 
reduction  in  the  duty  on  flaxseed. 

PARAGRAPH  761. — SEEDS. 

WITNESSES. 

FA  YOKING  LOWER  DUTIES  : 

The  Wholesale  Grass  *Seed  Dealers'  Association.     (Brief.) 
The  seed  merchants  of  Philadelphia.     (Brief.) 
The  Louisville  Seed  Co.     (Brief.) 

Hearings:  Pages  3226-3238  and  brief. 

Witness:  Mr.  William  G.  Scarlett,  representing  the  Wholesale 
Grass  Seed  Dealers'  Association. 


346  DIGEST   OF   TARIFF    HEARINGS.   H.   R.    74-36. 

Size  of  industry. — The  estimated  average  total  consumption  of 
grass  seeds  in  the  United  States  is  400,000,000  pounds,  valued  at  be- 
tween $40,000.000  and  $50,000,000.  The  outlay  on  these  seeds  re- 
sulted in  a  hay  crop  alone  (average,  1911  to  1920)  valued  at 
$1,614,000,000. 

Comparability. — Many  of  these  seeds  are  not  produced  in  the 
United  States  and  others  are  not  produced  in  sufficient  quantities. 

Rates  suggested. — Grass  seeds  to  be  put  on  the  free  list.  The  seed 
dealers  protest  against  duties  being  levied  on  field  seeds,  which  have 
heretofore  been  free.  The  American  farmer,  particularly  in  his 
present  distressing  condition,  should  not  be  burdened  with  such  a  tax, 
the  revenue  from  which  would  amount  to  less  than  $375,000. 

Remarks. — The  duty  will  drive  the  farmer  to  buy  cheaper,  weed- 
infested  grass  seed.  The  duty  is  not  necessary  to  discourage  the 
importation  of  poor  seeds,  since  this  has  been  accomplished  for  nine 
years  under  the  Federal  seed  import  act  of  August  20,  1912. 

Witness:  The  seed  merchants  of  Philadelphia.  (Brief;  no  ap- 
pearance at  hearings.) 

Rates  suggested. — The  writers  protest  against  the  proposed  duties 
on  field  seeds.  The  revenue  would  amount  to  only  about  $750.000, 
but  this  would  bear  heavily  on  the  farmers,  who  should  be  helped 
rather  than  further  burdened. 

Remarks. — Many  of  these  seeds  are  not  produced  in  commercial 
quantities  in  the  United  States  while  others  are  not  produced  in 
sufficient  quantity  to  supply  the  requirements. 

Witness:  The  Louisville  Seed  Co.  (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — The  writer  desires  that  the  field  seeds  pro- 
vided for  in  paragraph  761  be  put  on  the  free  list.  The  duty  pro- 
posed would  burden  farmers  by  increasing  the  prices  on  commodi- 
ties they  have  to  buy. 

PARAGRAPH  762. — COTTON  SEED. 


FAVORING  LOWEB  DUTIES  : 

The  California  Cotton  Oil  Co.,  Los  Angeles,  Calif.     (Telegram  to  United 
States  Senator  McCumber.) 

Size  of  industry. — The  cottonseed  industry  of  California  now  has 
an  investment  of  $7.000,000. 

Rates  suggested.— Cotton  seed  should  be  specifically  provided  for 
on  the  free  list.  It  is  omitted  in  the  Fordney  bill  and  therefore  will 
be  duitable  at  20  per  cent  ad  valorem. 

Remarks. — The  only  cotton  seed  which  can  be  imported  under 
the  quarantine  regulations  of  the  Departnfent  of  Agriculture  is 
that  from  the  southern  Imperial  Valley  in  Mexico.  About  one- 
half  of  the  supply  comes  from  the  Mexican  side.  The  Mexican 
lands  are  almost  all  owned  and  controlled  by  Americans. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.   745G.  347 

PARAGRAPH  762. — FIELD  AND  GARDEN  SEEDS. 
WITNESS.  AND  INTEREST  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  Kirby  B.  White,  representing  the  American  Seed  Trade  Association. 
Detroit.  Mich. 

Hearings :  Pages  3238-3239. 

Rapes  suggested. — The  equivalent  specific  rate  of  6  cents  per 
pound  should  be  put  on  all  other  garden  seed  rather  than  20  per  cent 
ad  valorem.  Every  shipment  of  seed  has  a  distinctive  value,  which 
it  is  impossible  to  appraise.  The  trade  prefers  any  reasonable 
specific  rate  to  the  ad  valorem  basis. 

PARAGRAPHS  763,  765,  AND  767. — PEAS  AND  BEANS. 

WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Emil  S.  Nordl  merer,  representing  the  Dried  Fruit  Association  of  New 

York,  New  York  City. 
The  Foreign  Commerce  Association  of  the  Pacific  Coast.     (Brief.; 

Hearings :  Page  3244. 

Witness:  Mr.  Emil  S.  Xordlinger.  Xew  York  City,  X.  Y. 

Costs  and  selling  pri-ces. — Before  the  war,  lentils  could  be  bought 
for  3  cents  per  pound  in  Konigsberg.  East  Prussia,  and  were  sold 
here  for  5  cents  per  pound  at  retail. 

Rates  suggested. — The  Payne-Aldrich  rates  on  peas,  beans,  and  len- 
tils to  be  retained;  that  is  to  say,  beans,  45  cents  per  bushel  (75  cents 
per  100  pounds) ;  lentils.  45  cents  per  bushel  (75  cents  per  100 
pounds) :  dried  peas,  25  cents  per  bushel  (42  cents  per  100  pounds) ; 
and  split  peas,  40  cents  per  bushel  (66  cents  per  100  pounds). 

Remarks. — Peas  and  beans  are  articles  of  staple  diet  especially  im- 
portant to  the  poor  man,  and  are  imported  only  when  there  is  a 
shortage  in  this  country.  Lentils  are  not  produced  in  this  country, 
and  are  used  by  Italians  and  Russians. 

Hearings :  Pages  3239-3243. 

Witness :  The  Foreign  Commerce  Association  of  the  Pacific  Coast. 
(Brief.) 

Size  of  industry. — The  total  domestic  production  for  11  years 
ending  1920  was  128.998.000  bushels;  during  the  same  period  im- 
ports were  13,406.000  bushels  and  exports  14.793.000  bushels. 

Comparability. — Domestic  buyers  prefer  domestic  beans,  which 
command  a  price  premium  over  the  imported. 

Rates  suggested. — Xot  more  than  one-half  of  1  cent  per  pound. 

Remarks. — The  decline  in  prices  of  beans  was  not  caused  by  im- 
ports but  by  the  general  causes  of  declines  in  other  products. 

The  proposed  duty  is  so  hisfh  that  the  revenue  would  be  decreased. 

The  duty  will  unnecessarily  raise  the  price  of  this  staple  food 
product. 


348  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

PARAGRAPH  763. — BEANS. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Hon.  Charles  E.  Townsend,  United  States  Senator  from  Michigan.     (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — On  beans,  If  cents  per  pound. 

Remarks. — Michigan  is  devoting  a  great  deal  of  its  agricultural 
resources  to  beans'  and  should  be  heard  if  reduction  from  the  pro- 
posed rate  is  favorably  considered. 

PARAGRAPH  766. — MUSHROOMS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  A.  G.  Hupfel,  representing  mushroom  growers ;  address,  New  York  City. 
Mr.   Edward   H.   Jacobs,   representing  mushroom  growers ;   address,  West 
Chester,  Pa. 

FAVORING  LOWER  DUTIES  : 

Mr.  George  O'Hara,  representing  the  Associated  Importers  of  Food  Prod- 
ucts ;  address,  New  York  City. 

Hearings :  Pages  3246-3249. 

Witness :  Mr.  A.  G.  Hupfel,  representing  mushroom  growers. 

Costs  and  selling  prices. — Mushrooms  can  be  produced  for  about 
40  cents  per  pound.  The  prices  of  fresh  mushrooms  vary  seasonably 
from  35  cents  to  $1  per  pound. 

Rates  suggested. — The  rate  provided  by  the  Fordney  bill,  33^  per 
cent  ad  valorem ;  this  would  equal  35  cents  per  pound. 

Remarks. — The  witness  has  turned  a  brewery  in  New  York  City 
into  a  mushroom  plantation  and  claims  that  other  brewers  are  con- 
sidering that  step.  The  total  quantity  imported  in  the  year  ended 
June  30,  1921,  was  3,732,459  pounds. 

Hearings:  Pages  3249-3251. 

Witness :  Mr.  E.  H.  Jacobs,  representing  mushroom  growers. 

Size  of  industry. — Between  five  and  six  million  pounds  of  fresh 
mushrooms  are  grown  in  this  country.  In  the  East  alone  there  are 
at  least  250  growers. 

Rates  suggested.— -The  rate  in  the  Fordney  bill — 33J  per  cent  ad 
valorem. 

Remarks. — Imported  mushrooms  are  bleached  white  with  sulphur 
fumes  and  are  especially  desired  by  the  Chinese  restaurant  trade. 
Under  United  States  lawTs  the  domestic  product  can  not  be  so  treated. 
The  growers  and  consumers  regard  this  as  unfair  competition.  • 

Hearings :  Pages  3251-3256. 

Witness :  Mr.  George  O'Hara,  representing  the  Associated  Im- 
porters of  Food  Products. 

Costs  and  selling  prices. — The  witness  admits  that  ordinary 
laborers  in  France  are  paid  only  2.50  francs  per  hour  (say  20  cents 
on  exchange  of  eight)  and  the  chief  workman  250  francs  ($18)  per 
week.  Manure  costs  from  $6.80  to  $8.15  per  ton  delivered  at  beds. 

Rates  suggested. — The  association  particularly  desires  a  specific 
rate  of  duty  and  suggests  4  cents  per  pound,  including  the  weight  of 


DIGEST   OF   TARIFF    HEARINGS,    H.    R.    745(5.  349 

the  immediate  container.     This  would  equal  9.1  cents  per  pound  on 
the  drained  mushrooms  and  would  be  all  the  trade  can  stand. 

Remarks. — The  witness  takes  issue  with  Mr.  Jacobs  (p.  348^  and 
claims  that  French  mushrooms  are  not  bleached.  Some  chefs  pre- 
fer them  to  fresh  mushrooms  because  of  easier  preparation  and 
greater  economy  in  use.  He  says,  also,  that  firms  who  bought  the 
domestic  canned  mushrooms  have  declared  they  would  buy  no  more 
because  of  their  poor  quality. 

PARAGRAPH  768. — ONIONS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  J.  B.  Stambaugh,  representing  the  National  Onion  Association. 
FAVORING  LOWER  DUTIES  : 

Brief  presented  by  the  New  York  Fruit  Exchange. 


Hearings :  Pages  3256-3260,  3265-3268. 
Witness :  Mr.  J.  B.  Stambaugh,  repres 


representing  the  National  Onion 
Association. 

Costs  and  selling  prices. — The  average  domestic  cost  per  100 
pounds,  delivered  at  New  York,  without  profit,  is  $4.63^,  as  compared 
with  Spanish  and  Egyptian  costs  of  $1.85.  The  average  daily  wage 
in  the  United  States  is  $3.25  to  $3.50  and  in  Spain  43  to  58  cents. 
The  wholesale  price  was  run  down  to  40  cents  per  100  pounds  in  1920. 

Size  of  industry. — The  capital  investment  in  the  domestic  industry 
amounts  to  $55,000,000 ;  about  100,000  persons  are  directly  dependent 
upon  an  industry  which  furnishes  30,000  to  40,000  cars  of  shipping 
per  year. 

Comparability. — Egypt  produces  a  larger  onion  than  southern 
domestic  producers  have  been  able  to  grow.  The  Spanish  onions  are 
much  like  those  gro\vn  on  the  Pacific  coast. 

Rates  suggested. — A  rate  of  1^  cents  per  pound  would  fairly  rep- 
resent the  difference  in  the  cost  of  production  here  and  abroad.  In 
his  later  testimony,  the  witness  asked  for  a  duty  of  1  cent  a  pound. 

Remarks. — The  emergency  duty  of  40 '  cents  per  bushel  has  not 
proved  effective. 

Hearings :  Pages  3087-3089. 

Brief:  The  New  York  Fruit  Exchange. 

Costs  and  selling  prices. — The  cost  of  Spanish  onions  has  greatly 
increased.  Wages  have  increased  from  2  to  4  and  5  pesetas  per  day 
(peseta=19.3  cents  at  par),  and  packing  and  freight  costs  have 
doubled.  An  increase  in  the  present  tariff  on  Spanish  onions  would 
put  a  stop  to  importations.  The  exchange  also  urges  that  no  change 
be  made  in  the  tariff  on  potatoes,  onions,  and  other  vegetables  com- 
ing from  Bermuda.  These  come  early  in  the  season  and  so  compete 
only  to  a  limited  extent  with  domestic  products. 

Comparability. — Owing  to  the  difference  in  quality,  Spanish  onions 
do  not  conflict  with  domestic.  They  are  large  and  sweet  and  are 
seldom  used  for  cooking  purposes. 

Rates  suggested.— The  1913  rate  of  20  cents  per  bushel  of  57 
pounds  to  be  retained. 


350  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    74,%. 

PARAGRAPH  769. — POTATO  FLOUR,  ETC. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  W.  P.  Hartman,  representing  the  Falk  American  Potato  Flour  Cor- 
poration,   Pittsburgh,    Pa. 

Hearings :  Pages  3268-3273. 

Costs  and  selling  prices. — Raw  material  costs  are  3.1  cents  per 
pound;  total  costs,  6  cents  per  pound  ready  for  shipment.  Foreign 
potato  flour  is  being  sold  at  from  3^  to  3|  cents  per  pound. 

Size  of  industry. — This  corporation  has  five  plants  and  up  to  the 
present  time  has  produced  5,000,000  pounds.  It  is  capitalized  at 
$1,000,000. 

Hates  suggested. — At  least  3  cents  per  pound  to  insure  the  in- 
dustry's continued  existence.  The  duty  of  1^  cents  per  pound  in  the 
bill  was  erroneously  based  on  a  production  factor  of  25  per  cent, 
whereas  the  correct  factor  is  20  per  cent,  which  would  require  a  duty 
of  2.1  cents. 

Remarks. — Competition  is  mainly  from  Holland  and  Germany, 
where  a  potato  of  higher  starch  content  is  used.  As  about  2  per 
cent  of  potato  flour  is  used  to  mix  with  wheat  flour  in  bread  making, 
as  an  improver,  a  small  increase  in  the  price  of  potato  flour  would 
hardly  be  reflected  in  the  price  of  bread. 

PARAGRAPH  770. — TOMATOES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  S.  Mitchell,  representing  manufacturers  of  tomato  paste,  Wind- 
fall, Ind. 

FA-VORING  LOWER  DUTIES  : 

The    American    Fruit    and    Vegetable     Shippers'     Association,     Chicago. 

(Brief.) 

Mr.  Charles  H.  Bates,  representing  the  Southern  Pacific  Ra'lroad.     (Brief.) 
Mr.  Frank  L.  Barry,  representing  the  Nogales   (Ariz.)   Chamber  of  Com- 
merce. 

Hearings :  Pages  3280-3284. 

Witness:  Mr.  John  S.  Mitchell,  representing  manufacturers  of 
tomato  paste. 

Costs  and  selling  prices. — The  estimated  domestic  cost  per  case 
of  tomato  paste  (25  per  cent  tomato  solid)  in  1921  was  $10  per  case, 
60  per  cent  of  which  was  labor  cost.  Italian  labor  cost  was  20  per 
cent  of  the  domestic  and  the  duty  asked  for  would  just  cover  the 
difference.  The  representative  of  the  Italian  Chamber  of  Commerce 
in  New  York  gave  $18.50  per  case  as  the  cost  of  the  imported,  but 
it  may  be  expected  that  the  normal  cost  of  $4.62^  for  the  imported 
will  soon  be  reached. 

Rates  suggested. — Forty-two  per  cent  ad  valorem,  or  4  cents  per 
pound,  on  tomato  paste  containing  not  less  than  25  per  cent  tomato 
solids ;  5  cents  per  pound  on  paste  containing  more  than  25  per  cent 
of  tomato  solids,  including  the  weight  of  the  immediate  container. 

Remarks. — The  domestic  industry  was  built  up  during  the  war 
when  imports  of  Italian  tomato  paste  were  cut  off.  The  Italian  de- 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  351 

mand  in  this  country  furnished  the  entire  market.  If  the  duty 
asked  is  granted,  the  manufacturers  will  have  a  chance  to  popularize 
the  product,  increase  the  volume  of  production,  and  bring  do\vn  the 
cost  to  below  the  1914  level. 

Witness :  Mr.  Charles  H.  Bates,  attorney  for  Mr.  Epes  Randolph, 
president  Southern  Pacific  Railroad.  (Brief;  no  appearance  at 
hearings.) 

Kates  suggested. — That  the  duty  on  raw  tomatoes  be  not  materially 
increased  from  the  1913  rate.  If  it  is  desired  to  retain  the  proposed 
rate  of  1  cent  in  the  bill,  a  provision  should  be  inserted  putting 
tomatoes,  in  their  natural  state,  on  the  free  list  from  December  15 
to  April  10. 

Remarks. — The  proposed  rate  of  1  cent  per  pound  is  about  200 
per  cent  over  the  present  rate,  which  about  equals  one-third  cent  per 
pound.  Mexican  tomatoes  do  not  compete  with  domestic,  because 
they  are  imported  from  December  15  to  April  10. 

The  matter  is  important  to  the  railroads  of  the  Southwest  because 
the  proposed  duty  threatens  to  cut  down  their  freight. 

Witness :  The  American  Fruit  and  Vegetable  Shippers'  Associa- 
tion. Chicago.  (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Tomatoes  in  their  natural  state,  free. 

Remarks. — Practically  all  imported  tomatoes  come  from  Mexico. 
These  imports  do  not  compete  with  the  domestic  product,  because 
they  come  into  the  market  earlier  in  the  season  than  domestic  toma- 
toes, those  from  Florida  excepted.  But  Florida  tomatoes  are  sold 
in  eastern  markets  and  Mexican  tomatoes  in  the  West. 

Hearings :  Pages  3273-3280. 

Witness :  Mr.  Frank  J.  Barry,  representing  the  Xogales  Chamber 
of  Commerce,  Nogales,  Ariz. 

Costs  and  selling  prices. — Production  costs  on  one  ranch  were  given 
as  8.533  cents  per  pound,  selling  at  8.984  cents.  The  selling  price  of 
Mexican  tomatoes  to  the  final  consumer  was  said  to  be  about  25  cents 
per  pound  retail. 

Rates  suggested. — A  duty  of  three-eighths  cent  per  pound,  to  apply 
between  September  15  and  May  15. 

Remarks. — Mexican  tomatoes  are  grown  on  the  west  coast  of  Mex- 
ico, to  a  large  extent  (77  per  cent)  by  Americans,  and  are  shipped 
from  December  to  March.  They  are  marketed  largely  in  the  West 
and  Central  States  and  do  not  compete  with  the  summer  tomato  or 
the  Florida  tomato. 

PARAGRAPH  773. — DRIED  VEGETABLES. 

WITNESS. 

FAVORING  HIGHER  DUTIES  : 

The  Anhydrous  Food  Products  Co.,  Chicago,  111.      (Brief;  no  appearance 
at  hearings.) 

Rates  suggested. — On  dehydrated  vegetables. 


352  DIGEST   OF   TARIFF    HEARINGS.    H.    R.    74"><j. 


Variety. 

American 
value. 

Duty. 

Carrots  . 

Cents. 
40 

Cents. 
10 

Cabbage 

48 

12 

Onions... 

60 

15 

Spinach.  . 

90 

22i 

Garlic 

60 

15 

Mixed  veg 

etables,  Julienne  style  or  equivalent  

40 

10 

Potatoes. 

6 

Remarks. — The  industry  of  scientifically  drying  vegetables  and 
fruits  is  just  starting  in  the  United  States.  On  an  average,  one-half 
of  the  product  of  gardens  and  orchards  spoil  before  reaching  the 
ultimate  consumers.  Congress  spent  $250.000  in  1919  for  the  de- 
velopment of  the  industry. 

PARAGRAPH  775. — CHICORY. 


FAVORING  PROPOSED  OK  HIGHER  DUTIES: 

Mr.  David  McMorran,  Port  Huron,  Mich. 

Hearings :  Pages  3284-3286. 

Costs  and  selling  prices. — The  current  price  is  about  7  cents  per 
pound. 

Size  of  industry. — Chicory  is  grown  by  about  10,000  farmers  in 
Michigan.  It  is  also  grown  in  Wisconsin,  Nebraska,  Connecticut 
.  and  New  York. 

Rates  suggested. — On  raw  chicory,  1^  cents;  on  manufactured,  3 
cents  per  pound  as  in  the  bill.  But  for  the  war  the  present  tariff 
would  have  put  the  industry  out  of  business. 

Remarks. — Chicory  is  mixed  with  doffee  to  make  a  mellow  body  in 
the  modern  Central  American  and  South  American  coffees,  thus  tak- 
ing the  place  of  Java  coffee  in  the  Mocha  and  Java  mixture. 

PARAGRAPH  776. — COCOA. 

WITNESS. 
FAVORING  LOWER  DUTIES  : 

Mr.  Stephen  L.  Bartlett,-  importer  of  manufactured  cocoas  and  chocolates, 
Boston,  Mass. 

Hearings :  Pages  3286-3289. 

Costs  and.  selling  prices. — The  manufacturing  is  done  mostly  by 
automatic  machinery  and  the  cost  is  little  if  any  greater  here  than 
abroad.  The  best  grade  of  imported  powder  used  by  the  witness 
costs  him  about  40  cents  per  pound. 

Rates  suggested. — One  cent  per  pound  on  unsweetened  cocoa  pow- 
der valued  at  less  than  20  cents  per  pound ;  3  cents  per  pound,  valued 
at  20  cents  or  more  per  pound. 

Remarks. — The  witness  imports  manufactured  cocoa  from  Holland 
in  tins  for  family  use  and  both  cocoa  and  chocolate  in  bulk. 

This  country  imports  60  per  cent  of  the  world's  production  of 
cocoa  beans  but  imports  of  manufactures  are  comparatively  insignifi- 
cant. 


DIGEST  OF  TARIFF  HEARINGS,  H.  R.  7456.  353 

PARAGRAPH  777. — GINGER. 


FAVORING  LOWER  DUTIES  : 

Edward  Benneche  &  Bro.,  manufacturers.  '  ( Brief ;  no  appearance  at  hear- 
ings.) 

Costs  and  selling  prices. — The  present  import  value  of  ginger  root 
in  casks  is  about  8  cents  per  pound  plus  the  present  duty  of  1^  cents, 
making  a  total  cost  of  9^  cents.  The  price  with  the  proposed  duty 
of  15  cents  per  pound  would  bring  the  cost  to  about  23  cents  and 
the  duty  would  be  about  200  per  cent  on  the  cost.  Similarly,  the 
proposed  duty  on  ginger  in  pots  would  amount  to  between  100  and 
140  per  cent. 

Rates  suggested. — It  is  requested  that  paragraph  777  be  eliminated 
and  that  preserved  ginger  be  dutiable  under  "  sweetmeats, "  as  for- 
merly. 

Remarks. — The  proposed  duty  would  be  prohibitive.  Preserved 
ginger  is  not  manufactured  in  this  country  nor  does  it  compete  with 
any  domestic  article. 

PARAGRAPH  779. — HOPS. 

• 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Se'd  G.  Back,  Portland,  Oreg.     (Brief.) 
FAVORING  LOWER  DUTIES  : 

Mr.  Lev!  Cooke.  representing  the  Anheuser-Busch  Co. 

Witness :  Mr.  Seid  G.  Back,  Chinese  merchant,  Portland,  Oreg. 
(Brief:  no  appearance  at  hearings.) 

Rates  suggested. — On  hops,  32  cents  per  pound. 

Remarks. — This  rate  is  necessary  to  save  this  industry  from  dis- 
aster. The  industry  is  a  very  important  one  in  Oregon. 

Hearings :  Pages  3289-3291. 

Witness :  Mr.  Levi  Cooke,  representing  the  Anheuser-Busch  Co. 

Costs  and  selling  prices. — Domestic  hops  sell  for  25  cents  per 
pound  while  the  Saazer  or  Bohemian  hops  sell  for  80  cents. 

Size  of  industry. — Domestic  production  is  now  down  to  35,000,000 
pounds,  more  than  half  of  which  goes  abroad.  Imports  amount  to' 
1 ,000,000  pounds  a  year. 

Comparability. — 'Because  of  the  much  higher  price  of  imported 
hops,  manufacturers  would  substitute  the  domestic  if  possible.  But 
it  is  necessary  to  use  part  imported  in  order  to  produce  a  beverage  of 
high  quality  and  flavor. 

Rates  suggested. — The  company  desires  the  present  rate  of  16  cents 
per  pound  to  be  retained. 

Remarks. — Cereal  beverages  require  more  hops  for  the  same  quan- 
tity than  does  beer,  but  production  is  so  much  less  that  the  demand 
for  hops  is  really  reduced. 


354  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

PARAGRAPH  780. — SPICES  AND  SPICE  SEEDS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  REARRANGEMENT  OF  DUTIES  : 

Mr.  Francis  J.  French  and  Mr.  ,T.  S.  Murphy,  representing  the  American 

Spice  Trade  Association. 

The  Stickney  &  Poor  Spice  Co..  Boston.     (Brief.) 
L.  H.  Parke  Co.,  Philadelphia. 
R.  A.  McCormick  &  Co.,  Baltimore,  Md.     (Brief.) 

Hearings :  Pages  3293-3296. 

Witness :  Mr.  F.  J.  French,  representing  the  American  Spice  Trade 
Association. 

Rates  suggested. — The  duty  on  ground  mustard  or  mustard  flour 
and  prepared  mustard  to  be  10  cents  per  pound  and  mustard  seed 
free ;  or,  if  a  duty  be  imposed  on  the  seed,  that  twice  the  amount  of 
such  duty  be  added  to  the  10  cents  per  pound  of  mustard. 

Remarks. — Under  the  proposed  rates  in  the  bill,  the  protection 
to  the  domestic  grinding  industry  is  cut  in  half,  the  duty  on  the 
ground  and  prepared  being  reduced  from  6  to  5  cents  and  a  duty  of 
1  cent  being  put  on  the  seed.  Since  the  yield  of  flour  from  the  seed 
is  about  50  per  cent,  this  duty  amounts  to  2  cents  per  pound  of  ground 
mustard. 

Hearings :  Pages  3297-3299. 

Witness:  Mr.  J.  S.  Murphy,  representing  the  American  Spice 
Trade  Association. 

Rates  suggested. — Raw  materials  of  the  spice  industry  to  be  on 
the  free  list.  If  made  dutiable,  they  should  be  subject  to  specific 
duties  because  of  the  difficulty  of  appraising  for  ad  valorem.  Fenu- 
greek seed,  rape  seed,  hemp  seed,  marjoram,  savory  and  thyme  are 
not*  specifically  mentioned  and  should  be.  '  The  duty  on  turmeric 
is  10  cents  per  pound — 250  per  cent  on  current  prices.  It  is  used 
as  raw  material  for  curry  powder  and  should  be  free.  English  mus- 
tard seed  is  superior  to  that  produced  in  this  country  and,  being  the 
necessary  raw  material  for  ground  mustard,  should  also  be  free. 
Imported  prepared  mustard  commands  a  high  price  premium  over 
domestic  because  of  its  prestige.  Foreign  producers  are  able  to  put 
the  mustard  bran  into  their  goods,  while  domestic  producers  can  not 
because  of  the  pure  food  laws. 

Witness:  The  Stickney  &  Poor  Spice  Co.,  Boston.  (Brief;  no  ap- 
pearance at  hearings.) 

Costs  and  selling  prices. — The  retail  price  of  foreign  mustard  is 
15  cents  per  tin ;  an  equally  good  quality  of  domestic  is  sold  for  10 
cents. 

Rates  suggested. — Mustard  seed,  the  raw  material  of  the  domestic 
packers,  should  be  put  on  the  free  list.  On  prepared  mustard  the 
dutjr  should  be  10  cents  per  pound.  Turmeric  root  should  be  free. 
The  proposed  duty  on  turmeric  root,  an  important  raw  material  for 
curry  powder,  equals  200  per  cent  ad  valorem,  while  the  proposed 
duty  of  2  cents  per  pound  on  curry  powder  is  only  10  per  cent  ad 
valorem.  Protest  is  also  entered  against  the  ad  valorem  duty  of  20 
per  cent  on  seeds,  herbs,  and  spices,  not  specially  provided  for,  and 
specific  duties  on  all  spices  are  recommended. 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  355 

Remarks. — Mustard  seed  yields  only  from  45  to  55  per  cent  of 
flour.  The  English  mustard  trust  has  fully  half  of  the  American 
business  and  nearly  all  the  business  of  the  world. 

Witness:  L.  H.  Parke  Co.,  Philadelphia.  (Brief;  no  appearance 
at  hearings.) 

Rates  suggested. — The  proposed  duty  of  10  cents  per  pound  on 
turmeric  is  excessive,  the  present  cost  without  duty  being  5  to  6  cents. 
Either  the  duty  of  1  cent  per  pound  on  mustard  seed  should  be 
omitted  or  the  duty  on  mustard  flour  should  be  increased  to  8  cents 
per  pound.  Otherwise  the  English  manufacturers  will  capture  the 
trade. 

Witness:  R.  A.  McCormick  &  Co.,  importers  and  manufacturers, 
Baltimore,  Md.  (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — Pre-war  prices  of  turmeric  varied  from 
3  to  5  cents  per  pound  as  against  4|  to  7  cents  per  pound  to-day. 

Rates  suggested. — The  company  protests  against  the  proposed  10 
cents  per  pound  duty  on  turmeric,  which  would  be  equivalent  to  100 
to  200  per  cent.  Such  a  duty  would  be  practically  prohibitive. 

A  duty  of  5  to  10  cents  per  pound  on  curry  powder  would  bring 
in  more  revenue  than  the  proposed  duty  without  increasing  the 
price  to  the  consumer. 

Mustard  seed  should  be  left  free  of  duty  and  a  duty  of  10  cents 
per  pound  should  be  put  on  ground  or  prepared  mustard. 

Any  prohibition  of  import  of  pepper  shells  should  except  those 
imported  under  bond  for  the  manufacture  of  piperine,  a  useful  drug. 

Remarks. — Turmeric  root  is  a  tropical  product  from  southern 
Asia  and  is  not  grown  in  the  United  States.  It  is  used  as  a  condi- 
ment for  its  flavor  and  color.  Curry  powder  is  about  40  per  cent 
powdered  turmeric  root  and  a  duty  on  the  raw  material  will  greatly 
favor  the  British  manufacturer,  especially  if  the  duty  on  curry  pow- 
der be  no  more  than  the  2  cents  per  pound  proposed. 

The  previous  reduction  in  the  duty  on  ground  mustard  from  10  to 
6  cents  per  pound  amounted  to  a  bounty  for  English  manufacturers, 
since  it  did  not  result  in  reducing  the  price  to  consumers. 

The  present  proposed  rates  of  5  cents  per  pound  on  ground  or 
prepared  mustard  and  1  cent  on  mustard  seed  would  greatly  favor 
foreign  producers.  Since  2  pounds  of  seed  are  required  to  make  1 
pound  of  prepared  mustard,  the  differential  would  be  greatly  cut 
down  under  the  proposed  duties. 

The  proposed  duty  on  seed  would  not  result  in  increasing  the  pro- 
duction of  seed  in  California,  because  the  English  seed  produces  a 
better  quality  flour. 

SCHEDULE  8. — SPIRITS,   WINES,   ETC. 
PARAGRAPH  802. — DISTILLED  LIQUORS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Levi  Cooke,  representing  the  Anheuser-Busch  Co. 

Hearings :  Pages  3301-3302. 

Rates  suggested. — The  rates  on  distilled  liquors  and  sparkling 
wines  provided  for  in  paragraphs  802  and  803  of  the  Fordney  bill  to 


356  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

remain  as  in  the  act  of  1913,  since  the  only  importations  allowed  are 
those  for  medicinal  purposes. 

PARAGRAPH  802. — ANGOSTURA  BITTERS. 


REQUESTING  RECLASSIFICATION  : 

The  J.  W.  Wuppermann  Angostura  Bitters  Agency  (Inc.).     (Brief;  no  ap- 
pearance at  hearings.) 

dates  suggested. — Bitters  containing  alcohol,  classified  by  the  pro- 
hibition commissioner  as  unfit  for  beverage  purposes,  $2.60  per  proof 
gallon. 

Remarks. — As  H.  R.  7456  now  stands,  Angostura  bitters  might  be 
classified  under  paragraphs  22.  801,  or  802.  To  eliminate  uncertainty, 
a  special  paragraph  is  desired  covering  this  article,  which  has  been 
declared  a  nonbeverage  by  the  prohibition  commissioner. 

SCHEDULE   9.— COTTON    MANUFACTURES. 

PARAGRAPHS  901  AND  902. — COTTON  YARN,  COTTON  SEWING  THREAD: 
CROCHET,  ETC. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  John  F.  Conwny  representing  E.  F.  Drew  &  Co.   (Inc.).  importer  and 
exporter,  New  York  City. 

Hearings:  Pages  3303-3331. 

Comparability. — In  a  long  brief,  reference  is  made,  on  pages  3319 
and  3320,  to  conditions  now  and  formerly  affecting  relative  costs  of 
production  in  this  country  and  abroad,  ^ot  only  do  American  work- 
ers operate  more  machinery  and  work  faster  than  their  brethren,  but 
the  former  foreign  advantage  in  lower  rates  of  interest  is  no  longer 
a  factor  since  the  war.  In  like  manner  the  cost  of  erecting  new 
spinning  mills  and  equipping  them  with  textile  machinery  is  now 
very  much  on  a  par  in  the  two  countries.  Practically  the  only  tiling 
to  be  considered  now  is  the  difference  in  labor. 

The  witness  calls  attention  to  the  fact  that  even  on  the  very  radical 
advancing  market  of  the  past  several  months  no  20/2  or  40/2  yarns 
have  been  imported,  be?ause  these  numbers  abroad  have  been  selling 
as  high  as,  if  not  higher  than,  the  domestic  prices  These  yarns  were 
not  affected  by  the  emergency  act,  as  the  fiber  was  less  than  If  inches 
in  length.  It  is  practically  impossible  to  import  these  sizes,  and  no 
tariff  whatever  is  necessary  on  these  coarse  numbers. 

Hates  suggested. — Specific  duties  for  paragraph  901  as  follows : 
No.  40  yarn,  3  cents  a  pound  for  carded,  with  an  additional  duty  of 
one-fifth  of  1  cent  per  number  on  numbers  above.  On  combed.  4 
cents  a  pound  per  number,  with  an  advance  of  one-quarter  of  a  cent 
per  number  above. 

On  the  numbers  below  40  there  does  not  seem  to  be  any  need  of  any 
duty;  but,  if  in  the  judgment  of  the  committee  any  duty  should  be 
added,  the  witness  would  suggest  one-tenth  of  1  cent  less  per  number 
below  40,  one-eighth  of  1  cent  per  pound  less  on  numbers  down  to 
20.  and  one-sixteenth  of  1  cent  less  on  20  and  below. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.   7456.  357 

For  paragraph  902  the  witness  asks  for  a  rate  of  15  per  cent  ad 
valorem,  as  in  the  Underwood  bill,  is  strongly  opposed  to  the 
American  valuation  plan,  and  gives  figures  on  pages  3325  and  3326, 
showing  that  the  proposed  rates  of  duty  would  more  than  equal  the 
entire  manufacturing  cost,  and  in  some  instances  nearly  the  entire 
market  value  of  the  yarn,  including  cotton.  The  rates  would  make 
importations  impossible,  and  in  most  cases  the  duty  would  be  not 
less  than  33^  per  cent  against  the  15  per  cent  rate  in  the  1913  tariff. 
Moreover,  the  proposed  rates  would  lead  to  endless  friction  with  the 
customs  authorities  and,  through  the  attendant  uncertainty,  cause 
loss  to  importers,  and  also  enable  the  few  large  interests  controlling 
the  domestic  manufacture  to  fix  exorbitant  prices. 

Remarks. — The  witness  applies,  in  a  measure,  the  same  general  re- 
marks regarding  yarns  to  all  classes  of  cotton  manufacture  and 
does  not  believe  it  necessary  to  increase  the  Underwood  rates,  espe- 
cially in  view  of  the  existing  conditions  abroad.  This  has  reference 
to  paragraphs  903  to  920. 

On  pages  3311  and  3327  the  witness  refers  to  raw  flax,  ramie,  hemp, 
and  manufactures  thereof,  schedule  10.  On  pages  3312  and  3330 
he  refers  to  woolen  and  worsted  yarn,  schedule  11.  On  pages  3313 
and  3330  he  suggests  several  changes  in  the  proposed  law  relative  to 
silk  and  silk  goods,  schedule  12. 

PARAGRAPH  901. — COTTON  YARN. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES: 

Mr.  Stuart  W.  Cramer,  representing  the  American  Cotton  Manufacturers' 
Association,  Charlotte,  N.  C. 

FAVORING  LOWER  DUTIES  : 

E.  F.  Drew  &  Co.  (Inc.),  importers  and  manufacturers,  New  York  City. 

Hearings :  Pages  3345-3357. 

Witness :  Mr.  Stuart  W.  Cramer. 

Comparability. — The  English  conversion  cost  of  producing  yarn 
from  raw  material  is  one-half  the  cost  here,  the  latter  being  twice 
what  it  was  before  the  war  owing  to  labor  conditions.  English  wage 
reductions  are,  however,  only  about  17^  per  cent  from  the  war-wage 
scale  of  150  to  200  per  cent  above  prewar. 

Rates  suggested. — The  association  indorses  the  Fordney  bill  scale 
of  ad  valorem  rates,  based  on  American  valuation,  but  if  these  rates 
are  modified  would  advocate  specific  rates  in  the  second  paragraph 
of  901,  as  follows : 

Cotton  yarns,  including  warps,  in  any  form,  bleached,  dyed,  col- 
ored, combed,  or  plied,  of  numbers  not  exceeding  No.  40,  0.4  of  1 
cent  per  number  per  pound;  exceeding  No.  40  and  not  exceeding 
No.  120, 16  cents  per  pound,  and  in  addition  thereto  0.55  of  1  cent  per 
number  per  pound  for  every  number  in  excess  of  No.  40;  exceeding 
No.  120,  60  cents  per  pound :  Provided,  That  none  of  the  foregoing  of 
numbers  not  exceeding  No.  100,  shall  pay  less  duty  than  7  per  cent 
ad  valorem,  and  in  addition  thereto  for  each  number  one-fifth  of  1 
per  cent  ad  valorem ;  nor  of  numbers  exceeding  No.  100  less  than  27 
per  cent  ad  valorem. 
77134—22 24 


358  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   "7456. 

Witness:  Mr.  John  F.  Conway,  representing  E.  F.  Drew  &  Co. 
(Inc.),  New  York  City,  importers  and  manufacturers. 

Hearings:  Pages  3303-3309. 

Comparability. — The  witness's  remarks  on  yarns  form  part  of  his 
testimony  dealing  with  textiles  generally,  covering  pages  3309-3331. 
He  wished  it  understood  that  his  remarks  applied  to  yarns  of  cotton, 
hemp,  and  wool,  also  to  artificial  silk,  and  discussed  at  length  the 
conditions  applying  to  imports  and  export  trade  in  different  numbers. 
In  this  connection  he  pointed  out  that  the  foreign  manufacturer  had 
an  advantage  in  construction  and  in  his  textile  machinery.  On  the 
other  hand,  his  former  advantage  in  lower  rates  of  interest  than 
American  is  now  a  thing  of  the  past,  but  there  is  still  an  advantage 
in  the  labor  which  has  been  trained  for  generations,  also  in  efficiency 
in  management.  American  labor  is  a  little  more  transient. 

Kates  suggested. — The  witness  believes  that  a  specific  duty  is  the 
proper  duty,  as  an  ad  valorem  rate  leaves  much  to  be  furnished  by 
the  customhouse  and  the  importer.  His  company  recommends  a  duty 
on  No.  40  yarn  of  3  cents  a  pound  for  carded,  with  an  additional 
duty  of  one-fifth  of  1  per  cent  upward;  on  combed  yarn,  4  cents  a 
pound  for  No.  40,  with  a  difference  of  one- fourth  cent  per  number 
advanced.  No  duty  needed  on  numbers  below  40. 

PARAGRAPHS  903,  904,  905,  908,  910.— COTTON  CLOTH. 
WITNESS,  AND  INTERESTS  REPKESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Henry  F.  Lippitt,  representing  cotton  manufacturers  of  Providence,  R.  I. 

Hearings :  Pages  3363-3387. 

Rates  suggested. — As  substitute  for  paragraph  905 : 

In  addition  to  the  duty  or  duties  imposed  upon  cotton  cloth  by  the  various 
provisions  of  this  section  there  shall  be  paid  the  following  cumulative  duties, 
the  intent  of  this  paragraph  being  to  add  such  duty  or  duties  to  those  to  which 
the  cotton  cloth  would  be  liable  if  the  provisions  of  this  paragraph  did  not 
exist,  namely,  on  all  cotton  cloths  woven  with  eight  or  more  harnesses  or  with 
Jacquard  motions  or  containing  more  than  one  color  or  more  than  one  number 
of  yarn  in  the  filling,  or  in  which  other  than  the  ordinary  warp  and  filling 
threads  are  used  to  form  a  figure  or  fancy  effect,  whether  known  as  lappets 
or  otherwise,  12  per  cent  ad  valorem  for  cloths  containing  yarns  the  average 
number  of  which  does  not  exceed  number  30 ;  exceeding  number  30,  15  per  cent 
ad  valorem. 

Tire  fabric  or  fabric  for  use  in  pneumatic  tires,  including  cord  fabric,  25 
per  cent  ad  valorem. 

Remarks. — Recommends  that  the  method  of  determining  yarn 
number  in  cloth  be  changed  to  a  basis  of  750  yards  for  No.  1  yarn 
instead  of  the  840-yard  basis. 

PARAGRAPH  904. — COTTON  FABRICS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Arthur  H.  Lowe,  chairman  Consolidated  Tariff  Committee  of  Cotton 
Manufacturers,  represent^?  National  Council  of  American  Cotton  Manu- 
facturers. American  Association  of  Cotton  Manufacturers,  National  Asso- 
ciation of  Cotton  Manufacturers,  Association  of  Cotton  Textile  Merchants, 
and  Arkwright  Club,  Fitchburg,  Mass. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  359 

Hearings :    Pages  3331-3345. 

Comparability. — "Unlike  the  steel  and  some  other  industries,  we 
meet  the  keenest  competition  in  our  markets  from  Japan,  England, 
Belgium,  and  other  sections  of  Europe  where  long-established  indus- 
tries are  paying  IOAV  wages." 

Remarks. — Recommends  that  the  method  of  determining  yarn  num- 
ber in  cloth  be  changed  for  No.  1  from  an  840-yard  basis  to  a  750-yard 
basis,  owing  to  the  take-up  in  manufacturing  (p.  3333).  Also 'that 
the  word  "  excessive,"  as  applied  to  sizing,  be  omitted  (p.  3334). 

PARAGRAPH  905. — COTTOX  CLOTH  WITH  EXTRA  THREADS,  ETC. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Arthur  H.  Lowe.     ( For  interests  represented,  see  par.  904. ) 

Hearings:  Pages  3331-3345. 

Rates  suggested. — Recommends  that  this  paragraph  read  as  fol- 
lows: 

In  addition  to  the  duty  or  duties  imposed  upon  cotton  cloth  by  the  various 
provisions  of  this  section,  there  shall  be  paid  the  following  cumulative  duties, 
the  intent  of  this  paragraph  being  to  add  such  duty  or  duties  to  those  to  which 
the  cotton  cloth  would  be  Table  if  the  provisions  of  this  paragraph  did  not 
exist,  namely :  On  all  cotton  cloths  woven  with  eight  or  more  harnesses,  or  with 
Jacquard  motions,  or  containing  more  than  one  color  or  more  than  one  number 
of  yarn  in  the  filling,  or  in  which  other  than  the  ordinary  warp  and  filling 
threads  are  used  to  form  a  figure  or  fancy  effect,  whether  known  as  lappets  or 
otherwise.  12  per  cent  ad  valorem  for  cloths  containing  yarns  the  average  num- 
ber of  which  does  not  exceed  No.  30;  exceeding  No.  30,  15  per  cent  ad  valorem. 

Tire  fabric  for  use  in  pneumatic  tires,  including  cord  fabric,  25  per  cent  ad 
valorem. 

PARAGRAPH  908. — JACQUARD  BLANKETS  AND  BLANKET  CLOTH. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   Charles  D.   Owen,   jr.,   representing  the   Beacon   Manufacturing  Co., 
Providence,  R.  I. 

Hearings:  Pages  3387-3388. 

Rates  suggested. — Recommends  that  this  paragraph  read  as  fol- 
lows: 

Tapestries  and  other  Jacqtiard  woven  upholstery  cloths,  Jacquard  figured 
blankets,  and  blanket  goods  made  with  more  than  one  colored  filling  thread,  iu 
the  piece  or  otherwise,  composed  wholly  or  in  chief  value  of  cotton  or  other 
vegetable  fiber,  30  per  cent  ad  valorem. 

PARAGRAPH  908 — TAPESTRIES  AND  OTHER  JACQUARD  UPHOLSTERY 
CLOTHS,  ETC. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Arthur  H.  Lowe.     (For  interests  represented  see  par.  904.) 

Hearings:  Pages  3331-3345. 

Rates  suggested. — Recommends  that  this  paragraph  read  as  fol- 
lows : 

Tapestries  and  other  Jacquavd  woven  upholstery  cloths,  Jacquard  figured 
blankets  and  blanket  goods,  made  with  more  than  one  colored  filling  thread,  in 


360  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

the  piece  or  otherwise,  composed  wholly  or  iu  chief  value  of  cotton  or  other 
vegetable  fiber,  30  per  cent  ad  valorem. 

PARAGRAPH  909. — PILE  FABRICS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Ward  Thoron.  representing  the  Merrimac  Manufacturing  Co.,  31  State 

Street,  Boston,  Mass. 
Mr.  Arthur  H.  Lowe.     (For  interests  represented  see  par.  904.) 

Hearings:  Pages  3389-3396. 

Witness :  Mr.  Ward  Thoron,  representing  the  Merrimac  Manufac- 
turing Co.,  31  State  Street,  Boston,  Mass. 

Comparability. — The  witness,  both  in  his  testimony  and  in  a  brief, 
reviews  at  length  the  stages  through  which  this  American  industry 
has  passed  and  the  diversity  of  processes  to  which  this  class  of  ma- 
terials is  subjected. 

Rates  suggested. — The  brief  recommends  rates  as  in  the  Fordney 
bill  for  plush,  velvet  ribbons,  and  terry-woven  fabrics  and  manu- 
factures, but  different  when  there  are  more  than  300  picks  or  filling 
threads  to  the  inch,  as  "  twill-back  velveteens."  The  paragraph 
should  read  as  follows: 

PAR.  909.— Pile  fabrics,  composed  wholly  or  in  chief  value  of  cotton,  including 
plush  and  velvet  ribbons,  cut  or  uncut,  whether  or  not  the  pile  covers  the 
whole  surface,  and  manufactures,  in  any  form,  made  or  cut  from  cotton  pile 
fabrics,  33J  per  cent  ad  valorem:  Prorided,  That  any  of  the  foregoing  con- 
taining in  excess  of  300  picks  or  filling  threads  to  the  inch,  including  the  filling 
pile  threads,  when  advanced  through  the  stage  of  cutting  or  beyond,  shall  pay 
in  addition  to  the  foregoing  rate  of  duty  10  per  cent  ad  valorem ;  t.erry-woven 
fabrics,  composed  wholly  or  in  chief  value  of  cotton,  and  manufactures,  in  any 
form,  made  or  cut  from  terry-woven  fabrics,  25  per  cent  ad  valorem. 

Remarks.— -It  is  admitted  that  present  conditions  make  it  impossi- 
ble to  make  any  reliable  determination  of  a  permanent  rate  of  pro- 
tection, but  the  rates  of  the  Underwood  tariff  are  insufficient. 

Hearings :  Pages  3335-3336. 

Witness:  Mr.  Arthur  H.  Lowe. 

Rates  suggested. — Recommends  that  a  duty  of  43^  per  cent,  ad 
valorem,  instead  of  33^  per  cent,  be  applied  to  pile  fabrics  and  manu- 
factures of  pile  fabrics  having  more  than  300  filling  threads  per  inch. 

PARAGRAPH  909. — TERRY  WOVEN  FABRICS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FLAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Nelson   Kershaw,  representing  the  Terry  Manufacturers'  Association, 
Clifton  Heights,  Pa. 

Hearings :  Pages  3396-3397. 

/Size  of  itidustry. — There  are  6,000  looms  used  on  this  work  in  fac- 
tories located  at  various  points  throughout  the  United  States.  The 
fabrics  produced  are  in  competition  with  imported  fabrics.  The 
essential  to  the  manufacture  commands  high  wages. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456. 


361 


Rates  suggested. — Is  satisfied  with  the  Fordney  bill  rate  on  terry- 
pile  and  terry- weave  fabrics,  but  asks  for  45  per  cent  ad  valorem  if 
foreign  valuation  is  retained. 

PARAGRAPH  911. — QUILTS  OR  BEDSPREADS,  ETC. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Arthur  H.  Lowe.     (For  interests  represented  see  pur.  904.) 

Hearings :  Pages  3335-3336. 

Remarks. — As  bedspreads  in  the  piece  are  not  covered  in  the  bill, 
the  witness  suggests  that  the  words  "  in  the  piece  or  otherwise  "  be 
inserted  after  the  word  "  bedspreads "  in  the  first  line  of  para- 
graph 911. 

PARAGRAPH  912. — ELASTIC  BRAIDS,  CORDS,  GARTERS,  AND  WEBBING, 
BOOT,  SHOE,  OR  CORSET  LACINGS. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Narrow  Fabric  Co.,  Reading.  Pa.     (Two  briefs.) 

Hearings :  Pages  3398-3400. 

Comparability. — The  first  brief  draws  attention  to  the  fact  that  the 
proposed  Fordney  bill  rates  are  lower  than  those  of  the  Underwood 
bill.  It  was  stated  that  in  the  manufacture  of  elastic  braids  the  labor 
cost  here  represents  54  per  cent  of  the  cost  of  production,  and  for 
boot.  shoe,  and  corset  lacings  this  amounts  to  66  per  cent.  The  Ger- 
man braider  earned  $3.50  per  week  at  the  rate  of  exchange  prevail- 
ing in  August,  1921.  while  in  the  United  States  the  same  kind  of 
labor  earned  from  $25  to  $40  per  week.  In  1914  the  German  workers 
in  this  industry  earned  about  $12.50  per  week.  It  is  also  felt  that 
harmful  competition  may  be  expected  from  Japan,  Belgium,  and 
Italy. 

Rates  suggested. — None  were  suggested,  but  the  Finance  Committee 
was  asked  to  fix  higher  rates  than  those  proposed  in  the  Fordney  bill. 

Costs  and  selling  prices. — 

Comparison  of  cost  on  rickrack  braids. 


Narrow 

German 

Narrow- 

German 

Fabric 

cost 

Fabric 

cost 

Size. 

Co.,  cost 

landed 

Size. 

Co.,  cost 

landed 

of  pro- 

in New 

of  pro- 

in New 

duction. 

YorkCity. 

duction. 

YorkCity. 

U 

$0.43 

$0.38 

33  

$1.05 

$1.10 

1" 

55 

50 

37 

1  14 

1  34 

21 

.67 

.63 

41  

1.24 

1.61 

79 

73 

45 

1  44 

1  90 

29.... 

.89 

.90 

49.... 

1.56 

2.34 

362 


DIGEST   OF   TAEIFF    HEARINGS,    H.   R.    7456. 
Comparison  of  cost  on  laces. 


Our  pattern  No. 

Our  cost 
to  manu- 
facture. 

Correspond- 
ing German 
pattern. 
W.  &  L.  No. 

Cost  in 
marks. 

Landed 
post,  New 
YorkCitv 
(at  1  cent 
per  mark) 

Per  cent- 
age  of  cost 
ofGerman 
goods 
under 
our  cost. 

H-6022 

$4.36 

4039/18 

151 

82.50 

74.4 

H-1152 

6  05 

40224 

269 

4  51 

31  1 

H-3122  

4.64 

30S422. 

171 

2.  6776 

73.1 

F-21022.  . 

4.42 

119  '22 

162 

2.69 

61.3 

D-1122 

4  03 

84522 

1J3 

2  37 

70.0 

D-1122J  

4.01 

845224  .     . 

143 

2.37 

69.2 

LC-2026  

D-2044 

4.31 

7  07 

305226  
9644 

160 

287 

2.66 
4.82 

62.0 
46.7 

D-20MJ 

6  *} 

96444 

249 

4  17 

64  0 

B-2032  

B-24052 

5.59 
9  37 

30.3626  
322752 

169 
431 

2.81 
7.27 

98.9 

28.8 

B-22152 

9  81 

323252 

406 

6  84 

43  4 

B-220m  
0-18052 

7.61 
11.71 

3232444.  
300648 

335 

462 

5.65 
7.78 

34.7 
50.5 

B-23052 

9  05 

3--3052 

430 

7.25 

24.8 

C-2044.... 
C-20444.. 

7.09 
7.06 

318244  
318244J 

226 
206 

3.78 
3.44 

87.6 
105.2 

PARAGRAPH  012;  ALSO  PARAGRAPH  1014  OF  SCHEDULE  10  AND  PARA- 
GRAPH 1114  or  SCHEDULE  11. — FABRICS  WITH  FAST  EDGES  NOT  EX- 
CEEDING TWELVE  INCHES  IN  WIDTH. 


WITNESSES. 


FAVORING  PROPOSED  OK  HIGHER  DUTIES  : 

The  narrow  fabric  manufacturers,  Philadelphia,  Pa.     (Brief;  no  appear- 
ance at  hearings.) 

Comparability. — The  Underwood  Act  provided  duties  on  narrow 
cotton  fabrics  of  45  to  75  per  cent,  which  did  not  prevent  goods  from 
being  imported  to  a  considerable  extent.  If  it  had  not  been  for  the 
embargoes  placed  on  these  commodities  by  the  war,  many  manu- 
facturers would  have  been  ruined,  and  the  production  of  fine  goods 
eliminated.  H.  K.  7456  does  not  give  protection,  but  handicaps  the 
industry  by  placing  high  specific  duties  on  the  yarns  that  must  be 
imported.  There  is  not  a  manufacturer  successfully  making  type- 
writer ribbons  in  the  United  States,  and  the  imported  No.  120  two- 
ply,  combed  and  gassed  yarn  is  scheduled  for  a  duty  of  36  cents 
per  pound.  Also,  a  plain  eight-shaft  sateen,  36  inches  wide,  made 
from  the  same  yarn  (par.  904)  has  a  protective  duty  of  84  cents  per 
pound,  but  the  identical  cloth  made  from  the  same  yarn,  woven  in 
a  half-inch  tape  costing  three  times  as  mueh  to  weave,  is  given  a 
protection  of  only  25  per  cent.  The  domestic  manufacturers  of 
narrow  fabrics  were  not  aware,  until  recently,  of  the  danger  threat- 
ened by  H.  E.  7456  and  are,  therefore,  urgently  asking  for  relief. 

Rates  suggested. — It  is  recommended  that  a  specific  duty  be  placed 
on  the  woven  goods  equal  to  that  on  the  yarns,  plus  an  ad  valorem 
duty  equal  to  the  difference  in  cost  between  the  foreign  and  the 
domestic  article.  Other  changes  recommended  are  as  follows: 

Paragraph  912,  schedule  9,  page  109,  lines  17  to  24,  to  read: 

Fabrics  with  fast  edges,  not  exceeding  twelve  inches  in  width,  and  articles 
made  therefrom,  tubings,  garters,  suspenders,  braces,  cords,  tassels,  and  cords 
and  tassels;  all  the  foregoing  composed  wholly  or  in  chief  value  of  cotton  or 
of  cotton  and  India  rubber,  and  not  specially  provided  for,  20  cents  per  pound 
and  25  per  centum  ad  valorem. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  363 

Paragraph  1014,  schedule  10.  page  116,  lines  24-25,  to  read: 

Fabrics  with  fast  edges,  not  exceeding  twelve  inches  in  width,  and  articles 
made  therefrom,  tubings,  *  *  *. 

Page  117,  lines  1-5,  to  read: 

Garters,  suspenders,  braces,  cords,  tassels,  cords  and  tassels ;  all  the  fore- 
going composed  wholly  or  in  chief  value  of  vegetable  fiber  other  than  cotton 
or  wholly  of  vegetable  fiber  other  than  cotton  and  India  rubber  and  not  specially 
provided  for,  25  cents  per  pound  and  30  per  centum  ad  valorem. 

Omit,  in  lines  5,  6,  7,  and  8,  all  reference  to  "tapes  composed 
wholly  or  in  part  of  flax  woven  with  or  without  metal  threads  on 
reels,  spools,  or  otherwise,  and  designated  expressly  for  use  in  manu- 
facturing measuring  tapes." 

PARAGRAPH  913. — GLOVE  CLOTH. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

*  AVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  Charles  C.  Ormsby,  representing  Ormsby-Morris  Co..  O.  M.  Glove  Cor- 
poration, and  12  or  more  other  concerns.  Waterford,  N.  Y. 
Mr.  Ernest  Jones,  representing  Fulton  County  Silk  Mill,  Gloversville,  N.  Y. 

Hearings :  Pages  3403-3408. 

Witness :  Mr.  Charles  C.  Ormsby. 

Size  of  industry. — The  witness  represents  the  trade  engaged  in 
the  manufacture  of  chamoisette  cotton  cloth — to  be  made  up  into 
fabric  gloves.  The  industry  employed  10.000  persons  at  one  time, 
while  to-day  there  are  none.  The  witness  attributes  this  condition 
entirely  to  imports  from  Germany. 

Rates  suggested. — Paragraph  913  to  read  as  follows:  Knit  fabric 
in  the  piece,  composed  wholly  or  in  chief  value  of  cotton  or  other 
vegetable  fiber  and  made  on  a  warp-knitting  machine,  60  per  cent 
on  American  valuation,  but  not  less  than  50  cents  for  each  square 
yard  thereof  and.  if  multifold,  for  each  square  yard  of  each  fold 
thereof. 

Paragraph  914  to  read  as  follows:  Gloves  composed  wholly  or  in  chief  value 
of  cotton  or  other  vegetable  fiber,  made  of  fabric  knit  on  a  warp-knitting 
machine.  60  per  cent  ad  valorem  on  American  valuation  but  not  less  than  a 
minimum  of  $3  per  dozen  pairs,  not  over  12  inches  in  length ;  for  each  inch  in 
excess  over  12  inches,  in  addition,  25  cents  per  dozen  pairs. 

On  such  gloves  of  two  folds  of  such  fabric  60  per  cent  ad  valorem,  on  Ameri- 
can valuation,  but  not  less  than  a  minimum  of  $4  por  dozen  pairs,  not  over  12 
inches  in  length ;  over  12  inches  in  length,  for  each  inch  in  excess,  35  cents  per 
dozen  pairs. 

Remarks. — It  was  stated  that  the  cost  of  manufacturing  gloves, 
exclusive  of  the  cloth,  is  greater  than  what  the  glove,  manufactured 
in  Germany,  is  being  sold  for  here. 

Hearings :  Pages  3412-3414. 

Witness:  Mr.  Ernest  Jones,  representing  Fulton  County  Silk 
Mills,  Gloversville,  N.  Y. 

Comparability. — These  mills  produce  the  sueded  cotton  cloth  from 
which  suede  fabric  gloves  are  made.  In  November,  1921,  this  cloth 
cost-  $1  a  square  yard  to  manufacture  in  the  United  States,  and  in 
Germany  S0.47  a  square  yard. 

Rates'  suggested. — Knit  fabric,  in  the  piece,  composed  wholly  or 
in  chief  value  of  cotton  or  other  vegetable  fiber,  made  on  a  warp- 


364  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456. 

knitting  machine.  60  per  cent  on  American  valuation,  but  not  less 
than  50  cents  a  square  yard. 

Remarks. — Germany  *is  the  greatest  competitor.  No  sueded  cotton 
cloth  from  which  suede  gloves  are  made  is  coming  in,  because  it  is 
more  profitable  for  Germany  to  make  the  gloves  and  send  them  to 
the  United  States.  One  German  manufacturer,  writing  on  October 
18,  1921,  states  that  in  finished  cloth  gloves  his  firm  is  sold  up  for  a 
year  ahead. 

PARAGRAPH  914. — COTTON  GLOVES,  ETC. 
WITNESS.  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   Lucius   Littauer,    representing   manufacturers   of   cotton   gloves,   New 
York  City. 

FAVORING  LOWER  DUTIES  : 

Julius  Kayser  Co.,  New  York  City.     (Brief.) 

Hearings:  Pages  3414-3429. 

Witness:  Mr.  Lucius  Littauer,  New  York  City. 

Size  of  industry. — Capital  invested,  $7,000,000  in  1918,  employing 
about  20,000  people.  To-day  no  people  are  employed,  on  account  of 
the  low  cost  of  imported  gloves. 

Rates  suggested. — An  ad  valorem  rate  of  not  less  than  $3  per 
dozen  pairs,  11  inches  or  less  in  length,  and,  in  addition  thereto,  15 
cents  per  dozen  for  each  inch  in  length  in  excess  of  11  inches. 

Remarks. — In  1918  there  were  made  here  1,300.000  dozens  and  in 
1920  about  31,000  dozens,  while  to-day  there  are  none  produced. 

Witness:  Julius  Kayser  Co.,  New  York  City.  (Brief;  no  appear- 
ance at  hearings.) 

Size  of  industry. — The  fabric-glove  industry,  at  its  peak  during  the 
war,  employed  about  5,000  people  drawn  from  the  leather  and  silk 
glove  industries.  Skilled  labor  is  always  scarce  in  these  industries, 
and  operators  diverted  to  the  manufacture  of  fabric  gloves  will  be 
in  demand  for  the  manufacture  of  leather  and  silk  gloves. 

Comparability. — The  German  pre-war  price  on  a  glove  retailing 
for  25  cents  a  pair  was  4|  marks  less  5  per  cent  discount,  equal  to 
$1  per  dozen  pairs.  In  August,  1921,  the  price  was  125  marks 
(1  mark=$0.015),  or  approximately  $1.87^  per  dozen.  For  spring, 
1922,  delivery  the  price  demanded  in  dollars  is  $1.85  to  $2.  There 
has  been  a  larger  percentage  of  increase  in  the  price  of  imported 
cotton  gloves  than  of  domestic  silk  gloves.  Cotton  gloves  have  ad- 
vanced from  75  to  100  per  cent,  silk  gloves  from  50  to  60  per  cent. 

The  imported  glove  is  superior  to  the  domestic:  after  extensive 
experimentation  the  company  was  convinced  that,  regardless  of  price, 
an  article  could  not  be  made  in  this  country  which  would  give  the 
customer  the  same  amount  of  satisfaction  as  the  German  product. 
During  the  war,  the  company  manufactured  over  3,500  dozen  a  week, 
but  buyers  were  practically  unanimous  in  stating  that  they  preferred 
the  imported  gloves. 

Rates  suggested. — No  rates  were  suggested,  but  the  witness  gave  it 
as  his  opinion  that  to  attempt  to  fix  an  excessive  permanent  tariff 
rate,  to  last  for  years,  because  of  shifting  conditions  as  they  exist 
to-day  is  illogical  and  unwise. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  365 

Remarks. — Imported  fabric  gloves  have  been  referred  to  as 
"  chamoisette."  This  word  was  copyrighted  by  Julius  Kayser  &  Co. 
and  registered  at  every  customhouse  in  the  United  States.  Others 
import  this  glove  under  different  names. 

PARAGRAPH    917. — PLAIN    COTTON    HANDKERCHIEFS   AND   MUFFLERS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVOKING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Joseph  W.  Stein,  representing  the  Tariff  Committee  of  American  Cot- 
ton and  Linen  Handkerchief  Manufacturers,  New  York  City. 

Hearings:  Pages  3430-3434  (Brief). 

8ize  of  industry. — The  industry  represented  here  employs  10,000 
workers,  with  a  yearly  wage  ranging  from  $7,500,000  to  $10,000,000. 
This  also  includes  linen  handkerchiefs.  (See  par.  1430.) 

Rates  suggested. — Handkerchiefs  or  mufflers  composed  of  cotton 
cloth,  in  the  piece  or  otherwise,  finished  or  unfinished,  not  hemmed, 
shall  pay  the  same  rate  and  amount  of  duty  on  the  cotton  cloth  of 
which  they  are  composed  as  is  imposed  by  this  act  on  cotton  cloth  of 
the  same  kind  and  description.  If  such  handkerchiefs  are  hemmed 
only,  they  shall  pay  9  per  cent  ad  valorem  in  addition  thereto :  Pro- 
vided, That  such  handkerchiefs  and  mufflers  shall  not  pay  a  less  rate 
of  duty  than  30  per  cent  ad  valorem.  Handkerchiefs  and  mufflers 
composed  of  cotton  cloth  in  the  piece  or  otherwise,  finished  or  un- 
finished, hemstitched  or  imitation  hemstitched,  or  revered,  or  having 
drawn  threads,  shall  pay  a  duty  of  37£  per  cent  ad  valorem. 

Remarks. — Wages  paid  here  are  fully  25  per  cent  above  those  paid 
in  England,  from  which  the  greatest  competition  comes.  Production 
costs  here  are  double  those  in  England. 

PARAGRAPH  918. — SHIRT  COLLARS  AND  CUFFS. 

WITNESS.  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  James  S.  Parker,  representing  the  Association  of  Collar  Manufacturers, 
Troy.  X.  Y. 

Hearings :  Pages  3434-3438. 

Size  of  industry:  Capital  invested,  $39,000',000,  yearly  pay  roll, 
$16.500,000. 

Rates  suggested. — Increase  as  follows:  Shirt  collars  and  cuffs  of 
cotton.  35  cents  per  dozen  pieces  and  15  per  cent  ad  valorem. 

Remarks. — Imports  in  1912  were  7,564  dozen,  valued  at  $0.92  per 
dozen ;  in  1913  there  were  7.726  dozen  imported,  valued  at  $1.01  per 
dozen;  and  the  1920  imports  were  22,667  dozen,  valued  at  $1.88  per 
dozen. 

Rates  suggested. — In  a  brief  supplementing  the  witness's  testi- 
mony, reference  is  made  to  the  association's  original  recommendation 
of  40  cents  per  dozen  and  20  per  cent  ad  valorem  on  linen  collars.  At 
a  subsequent  conference  with  a  subcommittee  of  the  Ways  and  Means 
Committee,  these  recommendations  were  modified  to  30  cents  per 


366  DIGEST  OF   TARIFF   HEARINGS,  H.  R.   7456. 

dozen  and  20  per  cent  ad  valorem.  The  rates  proposed  in  H.  R.  7456 
are  28  cents  per  dozen  and  17  per  cent  ad  valorem.  Under  the  act 
of  1913  linen  collars  are  dutiable  at  30  per  cent  ad  valorem. 

Remarks. — The  rates  drawn  up  in  H.  R.  7456,  it  is  believed,  arise 
through  a  misconception  of  the  importance  of  this  provision,  or 
through  a  mistake.  One  can  not  reconcile  the  lowering  of  the  duty 
on  linen  collars  to  a  rate  practically  equivalent  to  that  carried  in  a 
Democratic  tariff  law  with  a  desire  to  have  the  new  tariff  bill  serve 
as  a  perpetuation  of  American  standards  of  living. 

PARAGRAPH  919. — LACE  WINDOW  CURTAINS,  NETS,  ETC. 
WITNESS,  AND  INTEREST  EEPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  George  E.  Lackey,  representing  the  Lace  Curtain  Manufacturers'  Asso- 
ciation of  America,  No.  30  East  Twentieth  Street,  New  York  City. 

Hearings:  Pages  3438-3441. 

Size  of  industry.— About  $17,000,000  is  invested  in  United  States 
plants. 

Rates  suggested. — Paragraph  919  to  be  amended  as  follows: 

Lace  window  curtains,  nets,  nettings,  pillow  shams,  heel  sets,  and  all  other 
articles  and  fabrics,  by  whatever  name  known,  plain  or  jacquard  figured,  fin- 
ished or  unfinished,  wholly  or  partly  manufactured,  for  every  use  whatsoever, 
made  on  the  Nottingham  lace  curtrin  machine  and  composed  of  cotton  or  other 
vegetable  fiber,  when  counting  five  points  or  spaces  between  the  warp  threads 
to  the  inch,  2  cents  per  square  yard ;  when  counting  more  than  five  points  or 
spaces  to  the  inch,  1  cent  per  square  yard  in  addition  for  each  point  in  excess 
of  five;  and  in  addition  thereto,  on  all  the  foregoing  articles  in  this  paragraph, 
20  per  cent  ad  valorem:  Provided.  That  none  of  the  foregoing  shall  pay  a  less 
rate  of  duty  than  40  per  cent  ad  valorem,  nor  a  greater  rate  of  duty  than  45  per 
cent  ad  valorem. 

Remarks. — Exports  are  principally  to  Canada  and  the  total  is  less 
than  one-half  of  1  per  cent.  There  are  1,711  machines  employed  in 
this  work  abroad  and  470  here.  England  has  36  per  cent  of  all  ma- 
chinery, the  Central  Powers  24  per  cent,  and  the  United  States  21 
per  cent. 

SCHEDULE  10. — FLAX,  HEMP,  AND  JUTE,  AND  MANUFACTURES  OF. 

PARAGRAPH  1001.— FLAX  STRAW,  FLAX  NOT  HACKLED,  ETC. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Senator  Edwin  F.  Ladd,  of  North  Dakota,  representing  the  flax  growers  of 
North  Dakota. 

Hearings :  Pages  3443-3444. 

Remarks. — The  real  reason  for  the  failure  of  the  fiber  flax  in- 
dustry in  this  country  is  that  it  has  never  had  any  real  protection  or 
any  great  encouragement  in  the  region  where  flax  is  grown.  Rea- 
sonable protection  would  encourage  the  farmer  to  grow  flax.  If 
the  polic}'  in  force  since  1912  is  continued,  there  will  be  no  domestic 
flax  industry  in  five  years  more.  In  1912,  domestic  production  was 
very  much  more  than  at  the  present  time.  In  the  Eastern  States 
where  flax  has  been  grown  in  times  past,  the  flax  welt  largely  de- 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  367 

stroyed  the  growth:  but  in  the  West  a  welt-resistant  flax  has  been 
developed.  It  is  not  impossible  to  develop  a  machine  that  will  pull 
flax  in  a  satisfactory  manner,  nor  is  it  impossible  to  develop  a  prqcess 
of  retting  similar  to  that  now  used  in  North  Dakota  for  retting  other 
fibers. 

PARAGRAPH  1001. — RAW  FLAX  AND  RAW  HEMP. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES. 

Mr.  John  F.  Conway.  representing  E.  F.  Drew  &  Co.,  importers  and  manu- 
facturers, New  York  City. 

Hearings :  Page  3327  of  Schedule  9. 

This  item  is  included  in  brief,  dealing  with  paragraphs  in 
Schedules  9  and  10,4covering  pages  3315-3331,  Schedule  9.  As  re- 
gards paragraph  1001,  the  opinion  is  expressed  that  it  seems  unneces- 
sary to  place  any  duty  whatever  on  raw  material  in  view  of  its  pres- 
ent world-wide  scarcity. 

PARAGRAPH   1001. — HEMP,  HEMP  Tow,  AND  HEMP  HACKLED. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES. 

The  Italian  Chamber  of  Commerce  in  New  York,  representing  importers, 
exporters,  and  Italian  and  American  manufacturers. 

Hearings:  Pages  2583-2584  of  Schedule  7.  (Part  of  a  brief  (pp. 
2576-2592)  dealing  with  a  variety  of  Italian  products.) 

Costs  and  selling  prices. — Owing  to  recent  improvements  in  the 
use  of  harvesting  machinery  and  the  establishment  of  central  mills 
for  breaking  the  hemp  stalks  and  cleaning  the  fiber  by  efficient  ma- 
chinery, hemp  is  produced  to-day  in  the  United  States  far  more 
cheaply  than  abroad,  where  hand  labor  still  prevails,  requiring  a 
far  greater  number  of  operatives  to  perform  the  same  work. 

Size  of  industry. — The  domestic  hemp  industry,  notwithstanding 
hemp  being  on  the  free  list,  has  prospered  without  governmental 
aid.  Domestic  products  now  compete  with  imported  articles,  which 
are  now  limited  to  those  of  a  very  high  grade.  Imports  of  hemp 
in  1917  amounted  to  9,635  tons  and  in  1920  to  4,076  tons. 

Rates  suggested. — It  is  requested  that  hemp,  hemp  tow,  and  hemp 
hackled.which  have  not  been  farther  advanced  than  the  condition  of 
raw  material,  be  kept  on  the  frea  list. 

Remarks. — Hemp  is  a  raw  material  essential  to  the  manufacture 
of  high  grade  cordage  and  twine  and  to  the  manufacture  of  carpet 
yarns  and  rough  linens,  for  which  purposes  Italian  raw  hemp  is  far 
superior  to  all  other  hemps.  A  duty  on  hemp  would  be  only  a 
hindrance  to  American  manufacturers  and  a  burden  to  American 
consumers. 

Through  the  invention  and  use  of  labor-saving  machinery,  hemp 
is  now  grown  and  handled  in  the  United  States  as  easily  as  any  staple 
American  crop.  No  duty  is  needed  by  American  growers,  as  their 
industry  under  free  trade  has  grown  to  such  an  extent  that  it  is 
capable  of  existing  and  prospering  on  its  own  merits. 


368  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456. 

PARAGRAPH  1002. — SLIVER  AND  ROVING  or  FLAX,  HEMP,  RAMIE,  OR 
OTHER  VEGETABLE  FIBER  X.  S.  P.  F. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  John  F.  Conway,  representing  E.  F.  Drew  &  Co.  (Inc),  importers  and 
manufacturers,  New  York  City. 

Hearings :  Page  3327  of  Schedule  9. 

Rates  suggested. — In  a  brief  dealing  with  items  of  Schedules  9  to 
12  (pp.  3315-3331)  it  is  stated  that  a  duty  of  5  per  cent  would  seem 
ample,  with  heavy  freight  and  import  charges,  which  will  amount  to 
about  5  cents  per  pound  additional.  These  charges  in  themselves  are 
ample  protection. 

Remarks. — The  rates  proposed  on  sliver  and  foving  of  flax,  hemp, 
and  other  fibers  are  high.  On  account  of  the  bulky  nature  of  this 
material  and  consequent  high  freight  rates,  it  is  difficult  to  import 
sliver  and  roving  except  for  specialties. 

PARAGRAPH   1003. — JUTE  YARNS,   TWIST,  TWINE,   CORDAGE. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  John  F.  Conway,  representing  E.  F.  Drew  &  Co.  (Inc.),  importers  and 
manufacturers,  New  York  City. 

Hearings :  Page  3328  of  Schedule  9. 

Rates  suggested. — The  reference  to  this  item  is  included  in  a  brief 
(pp.  3315-3331)  covering  several  paragraphs  of  Schedules  9  to  12. 
It  is  stated  that  the  rates  for  jute  yarn  under  the  act  of  1913,  depend- 
ing upon  the  number  of  lea,  were  15  and  20  per  cent.  These  rates 
seem  ample,  as  very  little  jute  yarn  has  been  imported,  except  on 
the  finer-sized  or  at  times  when  domestic  prices  were  very  high. 

Remarks. — Under  the  prices  now  prevailing,  the  rates  proposed  in 
paragraph  1003  of  H.  R.  7456  will  be  very  high.  On  the  basis  of 
present  prices,  they  would  range  from  25  to  40  per  cent  and  under 
normal  conditions  from  33  to  50  per  cent  ad  valorem. 

PARAGRAPH  1003. — JUTE  YARNS  AND  CORDAGE. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  J.  E.  Barbour,  representing  the  Allentown  Spinning  Co.,  the  American 
Manufacturing  Co.,  the  Chelsea  Fiber  Mills,  the  Columbian  Rope  Co., 
the  Dolphin  Jute  Mills,  the  Hanover  Cordage  Co.,  the  Hoover  &  Allison 
Co.,  the  Lamond  &  Robertson  Co.,  the  Schlichter  Jute  Cordage  Co.,  the 
Sutherland  &  Edwards  Co.,  the  Wilmington  Mills. 

Hearings :  Pages  3444-3452. 

Costs  and  selling  prices. — Wages  in  Calcutta  average  $1.70  per 
week ;  in  Dundee,  $1.50  per  day ;  and  in  the  United  States,  $3  per 
day.  The  Indian  mills  run  13^  hours  per  day,  and  only  one  and  one- 


DIGEST   OF   TARIFF    HEARINGS,   H.   E.    7450.  369 

half  operatives  are  required  to  equal  the  production  of  one  American 
operative. 

Size  of  industry, — The  American  industry  has  a  capital  investment 
of  about  $60,000,000  and  employs  about  10,000  hands.  The  domestic 
consumption  of  jute  by  domestic  manufacturers  amounts  to  220,- 
000.000  pounds  yearly,'  70,000,000  pounds  of  which  are  consumed 
in  cotton  bagging  and  the  remainder  in  thread,  twine,  and  string, 
and  in  yarn  for  manufacture  into  carpets. 

Rates  suggested. — The  rates  and  classifications  requested  aie 
identical  with  those  submitted  to  the  Ways  and  Means  Committee, 
which  reduced  the  number  of  groups  from  5  to  4  and  lowered  the 
individual  rates.  It  is  requested  that  paragraph  1003  of  H.  R. 
T456  be  changed  to  read  as  follows : 

Cents  per 

Jute  yarns  or  roving.     Single:  pound. 

Coarser  than   20-pound, 3 

20-pound   to   11-pound 5 

10-pound   to   7-pound 7 

6-pound  to  5-pound 9 

4-pound  and  finer 11 

Jute  sliver 2 

Jute,  twist,  twine  and  cordage : 

Coarser    than    20-pound 

20-pound   to   11-pound 7 

10-pound    to    7-pound . 9 

6-pound   to   5-pound 11 

4-pound  and  finer 14 

The  term  "pound"  is  used  exclusively  in  the  jute  trade  and  refers 
to  a  fixed  length  of  14.400  yards;  the  higher  the  count,  the  coarser 
the  yarn,  which  is  the  opposite  of  the  yarn  numbering  systems  used 
in  the  cotton  and  linen  trades  where  the  base  is  a  fixed  weight. 

In  the  original  brief  the  groupings  were  reduced  to  a  minimum 
with  a  view  to  simplification ;  any  further  reduction  tends  to  make 
the  rates  not  only  inadequate  but  out  of  proportion. 

A  specific  rate  of  duty  is  required  because  variations  in  wages 
in  this  country  and  abroad  are  in  substantially  the  same  ratio.  Con- 
sequently, a  specific  duty  more  adequately  represents  the  difference 
in  wages  and  cost  of  production  than  an  ad  valorem,  based  not  only 
upon  relative  wages  but  also  upon  the  cost  of  raw  material.  The 
time  and  labor  required  to  produce  a  pound  of  fine  yarn  or  twine 
varies  directly  in  proportion  to  its  size.  The  finer  the  yarn  and 
twine,  the  greater  the  time  and  labor  cost  required  for  the  manu- 
facture. 

Remarks. — Calcutta,  India,  and  Dundee  are  the  sources  of  compe- 
tition, with  Dundee  supplying  up  to  the  present  the  bulk  of  im- 
ports. During  the  last  four  years,  however,  the  jute  mills  in  India 
have  increased  30  per  cent  in  capacity,  so  that  their  capacity  for 
burlap  at  the  present  time  is  in  excess  of  export  requirements.  As 
yarn  is  the  foundation  of  burlap,  India  will  naturally  turn  to 
increasing  very  materially  her  exports  of  yarn  and  twine. 

In  a  brief  filed  by  the  witness  (pp.  3448~3452)  a  change  in  the 
groupings  of  paragraph  1003  is  suggested.  The  rates  in  H.  R.  7456 
are  regarded  as  inadequate. 


370  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

PARAGRAPH  1004. — YARNS  AND  CORDAGE  or  FLAX,  HEMP,  OR  RAMIE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Robert  Barbour,  representing  the  Linen  Thread  Co.,  the  Barbour  Flax 

Spinning  Co.,  the  Smith  &  Dove  Manufacturing  Co.,  J.  E.  Barbour  Co., 

West  End  Thread  Co.,  R.  J.  Ederer  Co.,  Superior  Thread  &  Yarn  Co., 

Chelsea  Fiber  Mills. 
Mr.  George  F.  Smith,  representing  the  Smith  &  Dove  Manufacturing  Co., 

Andover,  Mass. 

Hearings :  Pages  3453-34:62. 

Witness :  Mr.  Robert  Barbour. 

Costs  and  selling  prices. — In  the  United  Kingdom  spreaders  and 
spinners  each  receive  15.63  cents  an  hour  as  compared  with  36.8 
cents  for  spreaders  and  40.7  cents  for  spinners  in  the  United  States. 
At  the  present  time,  Italian  hemp  yarn  is  being  sold  freely  in  this 
country  at  25  cents  per  pound,  whereas  the  cost  of  producing  similar 
yarn  in  this  country  is  30  cents  per  pound  for  four-lea  and  32  cents 
for  five-lea  yarn. 

Comparability. — The  bulk  of  imported  flax,  hemp,  and  ramie 
yarns  are  comparable  with  domestic  goods. 

Rates  suggested. — The  duties  proposed  in  H.  R.  7456  as  affecting 
threads  or  cords  are  inconsistent  with  those  proposed  for  single 
yarns.  The  labor  item  in  the  manufacture  and  fini>hing  of  threads 
and  cords  involves  just  double  the  amount  required  in  the  manu- 
facture of  the  yarn  from  which  such  threads  and  cords  are  made. 
The  duty,  therefore,  per  lea  or  number  on  the  threads,  twines,  or 
cords,  should  be  just  double  that  on  the  single  yarn. 

The  proposed  duty  on  yarns  carries  an  additional  duty  of  5  cents 
per  pound  when  the  yarns. are  boiled,  bleached,  dyed,  or  otherwise 
treated.  It  would  be  inconsistent  not  to  add  a  similar  duty  for  the' 
dyeing,  bleaching,  or  otherwise  finishing  the  threads,  twines,  or 
cords. 

It  is  requested  that  the  latter  portion  of  paragraph  1004  be  changed 
as  follows : 

Cents  per 

pound. 

Threads,  twines,  cords,  composed  of  2  or  more  yarns  of  flax,  hemp,  or 
ramie,  or  a  mixture  of  any  of  them,  twisted  or  braided  together,  the 

size  of  the  single  yarn  of  which  is  not  finer  than  8-lea 16 

Finer  than  8-lea  and  not  finer  than  40-lea 16 

And  1  cent  per  pound  additional  for  each  lea  or  part  of  a  lea  in 
excess  of  8. 

Finer  than  40-lea 53 

And.  in  addition,  on  any  of  the  foregoing  threads,  twines,  or  cords,  when 
boiled,  bleached,  dyed,  or  otherwise  treated,  6  cents  per  pound:  Provided, 
That  the  duty  on  the  foregoing  threads,  twines,  and  cords  shall  be  not  less 
than  23  per  cent  ad  valorem. 

Specific  duties  are  requested  in  order  to  differentiate  between  the 
cost  of  manufacturing  here  and  abroad.  When  prices  fluctuate,  the 
difference  in  manufacturing  costs  here  and  abroad  remains  the 
same,  and  the  only  really  practical  duty  is  a  specific  duty,  which 
has  nothing  to  do  with  the  value  of  the  product. 

Hearings :  Pages  3462-3463. 

Witness :  Mr.  G.  F.  Smith,  representing  the  Smith  &  Dove  Manu- 
facturing Co. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  371 

Costs  and  selling  prices. — Present  prices  of  imported  yarn  are 
nearly  double  what  they  were  during  the  prewar  period ;  during  the 
war  they  were  from  three  to  four  times  as  great. 

Comparability. — The  Smith  &  Dove  Manufacturing  Co.  and,  the 
witness  believes,  all  the  other  domestic  manufacturers  of  flax  yarns, 
are  prepared  to  furnish  satisfactory  hose  yarns  and  weaving  yarns 
provided  they  can  get  their  prices.  These"  firms  are  not  furnishing 
such  yarns  to-day  because  foreign  yarns  are  being  imported  at  prices 
with  which  they  can  not  compete. 

Raters  suggested. — In  H.  R.  7456  there  is  a  differential  duty  of  5 
cents  per  pound  additional  to  gray  yarns,  for  all  yarns  which  have 
been  boiled,  bleached,  or  treated.  In  the  case  of  threads,  there  is  no 
differential,  and  it  is  suggested  that  6  cents  a  pound  additional  be 

frovided  on  threads  that  are  boiled,  bleached,  or  otherwise  treated, 
t  is  further  requested,  since  the  labor  of  converting  the  yarn  into 
thread,  winding  it  and  preparing  it  for  the  market  is  at  least  double 
the  labor  on  yarn,  that  the  duty  placed  on  the  threads  should  be 
double  that  on  the  yarns,  namely,  1  cent  additional  per  lea. 

PARAGRAPH  1004. — FLAX  YARNS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Linus  C.  Coggan,  representing  The  Eureka  Fire  Hose  Manufacturing 

Co.,  Jersey  City,  N.  J. ;  Charles  Nietlner's  Son  Co.,  Maiden,  Mass. ;  Win. 

&  Chas.  Beck  (Inc.),  Lawrence,  Mass. 
Mr.  N,  R.  Foster,  representing  The  Niagara  Textile  Co.,  Lockport,  X.  Y. 

Hearings :  Pages  3463-3466. 

Witness :  Mr.  Linus  C.  Coggan. 

Costs  and  selling  price-?. — Slightly  more  than  1  pound  of  boiled 
yarn  is  required  to  make  1  pound  of  linen  fire  hose. 

Size  of  industry. — The  three  firms  here  represented  produce  all 
the  unlined  linen  fire  hose  woven  in  the  United  States. 

Comparability. — There  is  not  grown  in  this  country  a  suitable  flax, 
neither  is  there  manufactured  a  flax-line  yarn  suitable  for  making 
high-grade  linen  fire  hose. 

Rates  suggested. —  (1)  The  addition  to  paragraph  1004  of  the 
words :  "  Provided,  That  flax-line  yarns  of  8  lea  and  not  finer  than 
20  lea,  imported  solely  for  the  manufacture  of  linen  fire  hose,  shall 
be  admitted  free  of  duty."  The  only  result  of  imposing  a  duty  on 
flax-line  yarn  suitable  for  manufacture  into  fire  hose  is  to  make  the 
American  consumer  pay  more  for  his  product,  and  hose  being  an  ele- 
ment entering  into  building  construction,  such  costs  should  be  cut 
down. 

(2)  If  the  preceding  recommendation  be  not  adopted,  it  is  sug- 
gested that  an  ad  valorem  duty  of  20  per  cent  be  placed  on  flax-line 
yarns  of  8  and  not  finer  than  20  lea,  rather  than  a  specific  duty.  As- 
suming that  hose  now  selling  for  $2  a  pound  was  selling  for  75  cents 
a  pound  in  1914,  and  that  yarn  now  costing  75  cents  a  pound,  without 
duty,  costs  25  cents  a  pound  in  1914,  then  if  prices  should  recede  to 
their  pre-war  level  on  hose  and  yarn,  the  proposed  duties  would  be 
equivalent  to  the  specific  duty  of  20  cents  per  pound  on  j'arn  costing 
25  cents  per  pound — an  ad  valorem  duty  of  80  per  cent — while  for- 
eign competitors  would  be  paying  26  per  cent  or  19^  cents  per  pound. 


372  DIGEST   OF  TARIFF   HEARINGS,  H.  R.   7456. 

Remarks. — Domestic  yarn  manufacturers  are  unable  to  supply  the 
domestic  demand  for  flax-line  yarn  suitable  for  hose  purposes.  Plac- 
ing a  specific  duty  upon  linen  yarns  under  so  broad  a  classification 
as  requested  by  the  yarn  manufacturers  means  putting  a  noncom- 
petitive  price  upon  flax-line  yarn  suitable  for  the  manufacture  of 
linen  fire  hose.  (For  a  fuller  discussion  of  this  witness's  remarks, 
see  paragraph  1007,  Hose  for  conducting  water,  etc.). 

Hearings:  Pages  3467-3474. 

Witness :  Mr.  X.  R.  Foster,  Lockport.  X.  Y. 

Costs  and  selling  prices. — Stating  the  price  of  14-lea  .single- 
bleached  weft  yarn  under  American  valuation,  shows  how  domestic 
manufactures  of  linen  fabrics  are  affected  by  the  rates  on  linen 
yarns.  The  value  of  such  yarn  at  the  port  of  entry  on  to-day's  price 
would  be  48  cents,  and  the  duty  proposed  by  H.  *R.  7456  would  be 
16  cents,  an  equivalent  ad  valorem  of  33£  per  cent. 

Comparability. — Linen-yarn  spinning  in  America  is  very  re- 
stricted, and  good  yarns  of  the  right  character  are  not  yet  produced 
in  sufficient  quantity  to  supply  American  looms  weaving  linen 
fabrics. 

Rates  suggested. — Rates  on  linen  yarns  proposed  in  H.  R  7456 
should  be  lowered  or  else  increased  duties  placed  on  linen  fabrics. 
The  differential  should  be  at  least  25  per  cent.  Under  the  act  of 
1913  the  duty  on  linen  yarn  is  20  per  cent,  and  on  present  costs  the 
specific  duties  in  H.  R.  7456  will  more  than  double  the  amount  paid 
before  the  war.  If  prices  recede  to  their  pre-war  level,  the  specific 
duty  will  range  from  70  to  80  per  cent  and  more.  At  these  exces- 
sive rates,  however,  there  will  be  no  imports  of  linen  yarns  suitable 
for  the  manufacture  of  household  linens.  (For  a  fuller  discussion  of 
this  witness's  remarks,  see  paragraph  1009,  Linen  fabrics.) 

PARAGRAPH  1004. — HEMP   YARNS. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Italian  Chamber  of  Commerce  in  New  York,  representing  importers,  ex- 
porters, and  representative  Italian  and  American  'manufacturers.  New 
York  City. 

Hearings:  Pages  2584-2585  of  Schedule  7.  (Part  of  a  brief  (pp. 
2576-2592)  dealing  with  a  variety  of  Italian  products.) 

Costs  and  selling  prices. — It  is  urged  that  the  increase  proposed 
by  H.  R.  7456  would  stop  the  importation  of  all  semi-raw  material, 
which  domestic  manufacturers  of  thread  and  twine  should  be  able  to 
obtain  at  the  least  possible  cost. 

Comparability. — Practically  all  the  imports  consist  of  a  coarser 
grade  of  yarn  suitable  for  twine  or  cordage  or  for  filling  purposes 
in  the  manufacture  of  carpets. 

Rates  suggested. — That  the  rates  on  hemp  yarns  in  H.  R.  7456  be 
reduced  75  or  50  per  cent,  and  if  this  is  impossible  that  such  rates 
be  replaced  by  those  of  the  act  of  1909,  substituting,  however,  the 
equivalent  specific  rates  for  the  ad  valorem  rates  found  in  that  act. 

Remarks. — The  present  tariff  amply  protects  the  domestic  industry 
manufacturing  hemp  yarns,  as  is  shown  by  the  fact  that  the  domestic 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  373 

consumption  of  domestic  yarn  is  far  greater  than  the  quantities  im- 
ported or  likely  to  be  imported.  Imported  hemp  yarns,  especially 
those  not  finer'than  8  lea.  are  scarcely  manufactured  in  the  United 
States:  this  is  owing  to  the  difficulty  of  production  and  to  the  ob- 
jection of  labor  to  the  hard  work  necessary  for  their  manufacture. 
Consequently,  there  are  only  two  or  three  spinners  producing  this 
type  of  yarn  for  the  carpet  industry  and  their  supply  is  insufficient 
for  the  needs  of  that  industry. 

By  returning  raw  hemp  to  the  free  list,  it  would  seem  that  the 
duty,  ranging  between  12  and  20  per  cent  ad  valorem  on  the  yarn, 
would  protect  the  American  yarn  manufacturer  without  imposing 
any  hardship  on  the  American  consumer. 

PARAGRAPH  1004. — HEMP  THREADS,  TWINES,  OR  CORDS. 

WITNESS,  AM)  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

The  Italian  Chamber  of  Commerce  in  New  York,  representing  importers, 
exporters,  and  representative  Italian  and  American  manufacturers,  New 
York  City. 

Hearings:  Page  2585  of  Schedule  7.  (Part  of  a  brief  (pp. 
2576-2592)  dealing  with  a  variety  of  Italian  products.) 

Rates  suggested. — The  rates  on  hemp  threads,  twines,  and  cords 
proposed  in  H.  R.  7456  be  reduced  75  or  50  per  cent ;  if  this  be  im- 
possible, they  should  be  replaced  by  paragraph  340  of  the  act  of  1909. 

Remarks. — The  importation  of  these  articles  has  been  practically 
nil  under  the  present  tariff  rate  of  20  per  cent.  The  rates  proposed 
by  H.  R.  7456,  which  are  much  higher  than  those  in  the  act  of  1909, 
would  absolutely  prohibit  imports. 

PARAGRAPHS  1004,  1006,  AND  1007.— LINEN  THREADS,  TWINES,  AND 

CORDS. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Robert  Barbour,  representing  the  Linen  Thread  Co.,  the  Barbour  Flax 
Spinning  Co.,  the  Smith  &  Dove  Manufacturing  Co.,  J.  E.  Barbour  Co., 
West  End  Thread  Co..  R.  J.  Ederer  Co.,  Superior  Thread  &  Yarn  Co., 
and  Chelsea  Fiber  Mills. 

Hearings :  Pages  3453-3460. 

Remarks. — In  normal  times  America  will  not  be  able  to  compete 
in  production  of  the  proper  flax  fiber,,  primarily  because  of  the  lack 
of  experience  on  the  part  of  the  farming  class.  Flax,  to  be  properly 
produced,  should  be  cultivated  in  small  units  and  is  most  successful 
where  men,  women,  and  children  produce  the  flax  and  turn  it  over 
to  the  scutch  mills.  The  conversion  of  the  straw  to  the  raw  material 
causes  the  trouble  in  America.  The  soil  is  good  and  the  climatic 
conditions  are  favorable,  but  skilled  operatives  are  lacking.  The 
Barbour  Flax  Spinning  Co.  was  largely  responsible  for  the  increased 
American  acreage  during  the  war,  but  its  attempts  to  develop  ma- 
chines for  pulling  the  flax  were  an  absolute  failure.  Likewise,  at- 
tempts made  to  rett  and  scutch  by  machinery  at  a  central  plant  had 
to  be  abandoned. 

77134—22 25 


374  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

PARAGRAPHS  1004,  1009,  AND  1013. — LINEN  TOWELS,  NAPKINS,  AND 

CRASHES. 

WITNESS,  AND  INTEREST  EEPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  N.  R.  Foster,  representing  the  Niagara  Textile  Co.,  Lockport,  N.  Y. 
Hearings:  Pages  3467-3474. 

Costs  and  selling  prices. — At  the  present  time  all-linen  towels  and 
napkins  are  being  brought  into  this  country  at  very  near  the  price  for 
which  similar  goods,  of  part  linen  and  part  cotton,  can  be  made  here. 
When  central  Europe  begins  to  have  the  benefit  of  cheaper  cotton 
and  cheaper  flax  many  of  the  lines  which  are  now  being  made  in  the 
United  States  will  be  discontinued  through  inability  to  compete  with 
foreign  products. 

Size  of  industry. — There  may  be  12  or  14  factories  that  manufac- 
ture similar  goods. 

Comparability. — The  manufacture  of  linen  fabrics  "  is  probably 
America's  most  infant  industry ;  given  a  helpful  tariff  it  can  be  made 
one  of  her  greatest."  There  are  imported  annually  about  $50,000,000 
worth  of  household  linens,  of  which  the  greater  part  can  eventually 
be  made  in  this  country. 

Rates  suggested. — As  good  linen  yarns,  the  raw  material  of  this 
industry,  are  not  yet  produced  in  sufficient  quantity  to  supply  Ameri- 
can looms,  it  is  of  particular  importance  to  protect  fabric  manufac- 
turers in  the  matter  of  linen  yarns.  It  is  suggested  that  the  follow- 
ing be  added  to  paragraph  1004 :  "  That  all  flax  or  tow  yarns  im- 
ported to  be  woven  into  fabrics  take  not  over  15  per  cent  ad  valorem, 
and  on  any  of  the  foregoing  yarns  when  boiled,  bleached,  or  other- 
wise treated,  an  additional  5  cents  per  pound  be  added."  The  rate 
on  the  finished  fabric  is  reduced  in  H.  R.  7456  from  35  to  28  per  cent, 
while  linen  yarns  are  being  raised  from  20  per  cent,  the  rate  in  the 
Act  of  1913,  to  40  up  to  80  per  cent,  or  more.  The  differential  be- 
tween the  yarn  and  the  woven  fabric  should  be  at  least  25  per  cent. 
(See  remarks  on  flax  yarn,  paragraph  1004.) 

Remarks. — Under  H.  R.  7456,  the  flax  grower  and  the  linen  yarn 
spinner  are  given  liberal  and  increased  protection,  while  the  fabric 
manufacturer,  who  uses  raw  flax  and  flax  yarn  as  his  raw  materials, 
is  given  a  decrease  in  duties.  Manufacturers  of  flax  fabrics  must  be 
able  either  to  secure  their  yarns  at  a  lower  rate  or  to  have  increased 
protection  on  the  finished  linen  fabric. 

PARAGRAPH  1005. — CORDAGE  AND  ROPE. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Francis  C.  Holmes,  representing  American  Manufacturing  Co.,  Colum- 
bian Rope  Co.,  Cupples  Cordage  Co.  (Inc.),  Edwin  H.  Fitler  Co.,  the 
Hooven  &  Allison  Co.,  R.  A.  Kelly  Co.,  New  Bedford  Cordage  Co.,  Peoria 
Cordage  Co.,  Plymouth  Cordage  Co.,  Rinek  Cordage  Co.,  E.  T.  Rugg  & 
Co.,  Tubbs  Cordage  Co.,  Wall  Rope  Works  (Inc.),  Waterbury  Co.,  and 
Whitlock  Cordage  Co. 

Hearings:  Pages  3475-3478. 

Costs  and  setting  prices. — In  the  months  of  January-September, 
1921,  the  average  total  cost  per  pound  of  manufacturing  and  selling 
cordage  in  the  United  States,  as  obtained  from  a  number  of  domestic 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  375 

manufacturers,  was  15.21  cents  as  against  12.09  cents  for  the  declared 
value  of  foreign  cordage  imported  during  the  same  period  and  11.01 
cents  for  all  entered  from  the  Philippines.  The  wages  now  paid 
the  men  employed  in  American  cordage  industries  range  from  43 
cents  to  55  cents  per  hour  as  compared  with  from  14  to  30  cents 
for  the  corresponding  classes  of  English  workmen. 

Rates  suggested. — Cordage  should  carry  a  duty  of  2^  cents  per 
pound,  equivalent  to  13.15  per  cent  ad  valorem  on  the  present  Amer- 
ican market  price  of  manila  cordage,  this  figure  comparing  with 
13.6  per  cent  in  the  years  prior  to  1913.  As  wages  throughout  the 
world  are  more  than  double  pre-war,  the  amount  of  specific  protection 
should  be  made  to  correspond. 

Remarks. — Europe's  production  will  generally  increase  within 
the  next  few  years,  with  constantly  swelling  exports.  Before  the 
war  not  one  cordage  manufacturer  had  an  American  branch,  but 
two  (one  British  and  one  Dutch)  have  since  opened  branches  in 
New  York  City. 

Philippine  competition. — The  closing  paragraphs  of  the  brief 
(pp.  3477-3478)  are  devoted  to  the  question  of  Philippine  competi- 
tion in  this  industry,  as  abstracted  below. 

Costs  and  selling  prices. — The  total  cost  in  January-September, 
1921,  of  manufacturing  cordage  as  obtained  from  the  number  of 
domestic  manufactures  was  15.21  cents  per  pound  as  against  11.01 
cents  for  the  declared  value  of  cordage  imported  from  the  Philip- 
pines in  the  same  time.  The  average  wage  in  the  United  States  paid 
to  common  male  labor  in  the  cordage  industry  is  from  46  to  55  cents 
an  hour  as  contrasted  with  75  cents  per  day  in  the  Philippines.  For 
female  workers  the  rates  are  28  to  45  cents  per  hour  in  the  United 
States  and  40  cents  per  day  in  the  Philippines.  In  1919  the  cordage 
imported  from  the  Philippines  was  entered  at  from  3  to  5  cents  below 
American  market  prices. 

Rates  suggested. — A  duty  of  2|  cents  per  pound  to  be  placed  on  all 
cordage  coming  from  the  Philippines. 

Remarks. — Prior  to  1917  there  was  practically  no  Philippine  cord- 
age imported.  In  1919  there  was  imported  from  this  source  about 
1,352,000  pounds.  All  imports  of  convict-made  goods  should  be 
prohibited  and  Philippine  prison  labor  should  be  no  exception  to  this 
rule.  Section  5304,  United  States  Compiled  Statutes,  should  be 
amended. 

PARAGRAPH  1006. — FLAX  FISH  NETTING  AND  NETS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Brief  submitted  by  Mr.  Robert  Barbour  in  behalf  of  the  American  Net  and 
Twine  Co.,  R.  J.  Ederer  Co.,  Fish  Net  &  Twine  Co.,  and  National  Net  & 
Twine  Co. 

Hearings :  Pages  3460-3461. 

Rates  suggested. — The  differential  of  10  per  cent  over  the  threads, 
twines,  or  cords  from  which  fish  netting  or  nets  are  made  to  be  in- 
creased to  40  per  cent. 

Remarks. — The  threads,  twines,  and  cords  are  raw  material  to  the 
net  manufacturer,  who  converts  them  into  netting  and  nets.  As  the 


376  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

paragraph  stands  in  H.  R,  7456,  the  only  protection  the  netting 
manufacturer  receives  is  10  per  cent,  which  is  wholly  inadequate. 
Recent  quotations  by  European  and  Japanese  manufacturers  show 
that  the  ad  valorem  duty  of  10  per  cent  must  be  increased  to  at  least 
40  per  cent  if  this  country  is  to  continue  manufacturing  fish  netting. 

PARAGRAPH  1007. — HYDRAULIC  HOSE. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Limus  C.  Coggan,  Boston,  Mass.,  representing  the  Eureka  Fire  Hose 
Manufacturing  Co.,  Charles  Niedner's  Sons  Co.,  and  Wm.  &  Chas.  Beck 
(Inc.). 

Hearings :  Pages  3463-3466. 

Costs  and  selling  prices. — It  can  be  assumed  as  substantially  cor- 
rect that  the  foreign  manufacturer,  through  his  cheap  labor  and  ma- 
terial, can  manufacture,  for  $1.25  per  pound,  hose  which  is  com- 
parable to  the  domestic  article  selling  for  $2. 

Size  of  industry. — The  three  companies  here  represented  make 
practically  all  the  linen-fiber  hose  produced  in  the  United  States. 

Comparability. — Foreign  linen  hose  is  comparable  to  the  American 
product. 

Rates  suggested. — A  change  in  the  duty  on  linen  fire  hose  from 

26  to  50  per  cent  ad  valorem;  and  in  any  event,  a  differential  of  30 

per  cent  between  the  ad  valorem  duty  on  flax-line  yarn  of  8  lea  and 

"not  finer  than  20  lea,  and  finished  linen  fire  hose.     (See  paragraph 

1003  for  views  regarding  changes  in  proposed  duties  on  linen  yarn.) 

Remarks. — If  it  should  seem  wise  to  impose  a  duty  upon  flax-line 
yarns  admitted  for  manufacture  into  hose  or  for  any  other  purpose, 
the  duty  should  be  on  an  ad  valorem  instead  of  upon  a  specific  basis. 
The  specific  duty  on  linen  yarns  proposed  in  paragraph  1004  of  H.  R. 
7456  is  wholly  impractical  and  unscientific  and  may,  under  potential 
future  conditions,  drive  out  of  existence  manufacturers  producing 
this  class  of  material.  Linen  hose  under  the  duties  proposed  is  as- 
sessed at  an  ad  valorem  duty  of  26  per  cent,  while  the  raw  material, 
or  the  yarn,  is  advanced  from  an  ad  valorem  duty  of  20  per  cent  to  a 
specific  duty,  the  equivalent  ad  valorem  of  which  amounts  to  from  35 
to  40  per  cent  of  present-day  values  and  from  70  to  80  per  cent  of 
prewar  values. 

PARAGRAPH  1008. — JUTE  CLOTHS,  PROCESSED. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frank  Ewer,  representing  the  Bemis  Bros.  Bag  Co.,  Boston. 
FAVORING  LOWER  DUTIES  : 

Mr.  J.  E.  Barbour,  representing  the  Allentown  Spinning  Co.,  the  American 
Manufacturing  Co.,  the  Chelsea  Fiber  Mills,  The  Columbian  Rope  Co., 
the  Dolphin  Jute  Mills,  the  Hanover  Cordage  Co.,  the  Hooven  &  Allison 
Co.,  Lamond  &  Robertson  Co.,  the  Schlichter  Jute  Cordage  Co.,  the  Suth- 
erland &  Edwards  Co.,  and  the  Wilmington  Mills.  (Brief.) 

Hearings :  Pages  3481-3482. 

Witness :  Mr.  Frank  Ewer,  representing  the  Bemis  Bros.  Bag  Co., 
Boston. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  377 

Rates  suggested. — An  addition  of  7  per  cent  to  the  ad  valorem 
rate,  making  the  total  duty  on  jute  cloths  which  have  been  printed, 
dyed,  etc.,  1  cent  per  pound,  plus  20  per  cent  ad  valorem. 

Hearings:  Page  3450. 

Witness:  Mr.  J.  E.  Barbour  (as  above). 

Rates  suggested. — The  same  rates  to  be  maintained  as  are  found 
in  the  act  of  1913.  The  wording  of  the  act  of  1913  to  be  modified 
so  as  to  exclude  "  all  fabrics  known  or  used  as  carpets,  carpeting, 
mats,  and  rugs." 

PARAGRAPHS  1008,  1009,  1017,  AND  1019.— JUTE  BAGS  AND  SACKS. 
WITNESSES,  AND  INTERESTS  BEPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  J.  F.  Simpson,  representing  the  Maginnis  Cotton  Mills,  New  Orleans,  La. 
Mr.  Frank  Ewer,  representing  the  Bemis  Bros.  Bag  Co.,  Boston,  Mass. 

Hearings :  Pages  3478-3480. 

Witness:  Mr.  J.  F.  Simpson,  representing  the  Maginnis  Cotton 
Mills,  New  Orleans,  La. 

Costs  and  selling  prices. — At  present  the  heavy  cotton  sack  made 
for  100  pounds  of  granulated  sugar  is  in  competition  with  the  double 
bag,  consisting  of  an  outer  covering  of  burlap  and  an  interlining  of 
cotton.  This  is  possible  because  the  accumulation  of  low-grade  cot- 
ton has  depressed  its  price  5  cents  a  pound  below  the  current  price 
of  middling  cotton. 

Size  of  industry. — Nothing  would  be  more*  helpful  toward  stabiliz- 
ing low-grade  cottons  to  a  reasonable  value  than  a  duty  on  burlap 
and  burlap  bags.  Once  the  cotton  bag  made  from  low-grade  cotton 
is  established,  its  uses  will  spread  to  the  shipment  of  many  other 
commodities.  Increased  consumption  of  low-grade  cotton  in  bags 
will  increase  the  prosperity  of  the  cotton  grower. 

Comparability. — In  every  normal  cotton  crop  there  is  a  large  pro- 
portion of  low-grade  cotton.  Within  the  last  few  years  American 
cotton  mills,  through  the  installation  of  very  expensive  machinery, 
have  proved  that  low-grade  cotton  can  be  made  into  bags,  twine, 
and  rope  which  are  satisfactory  in  strength  and  service  to  the  con- 
sumer. 

Rates  suggested. — On  burlap,  a  duty  of  1  cent  per  pound  and  25 
per  cent  ad  valorem,  and  on  bags  at  least  20  per  cent  more  than  on 
the  burlap. 

Remarks. — The  cotton  farmer  has  been  burdened  in  the  past  few 
years  by  2,000,000  to  3,000,000  bales  of  considerably  lower  grade  cot- 
ton than  this  country  has  been  accustomed  to  spinning.  Only  in 
recent  years  has  machinery  been  adapted  and  perfected  which  will 
permit  the  utilization  of  this  cotton  for  the  manufacture  of  bags, 
twine,  and  rope  capable  of  competing  with  similar  articles  made 
from  jute  and  sisal. 

Hearings :  Pages  3481-3482. 

Witness :  Mr.  Frank  Ewer,  representing  the  Bemis  Bros.  Bag  Co., 
Boston,  Mass. 

Rates  suggested. — (1)  Bags  or  sacks  made  from  jute  fabrics,  not 
bleached,  printed,  etc.,  1  cent  per  pound,  and  in  addition  thereto  20 


378  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

per  cent  ad  valorem ;  (2)  bags  or  sacks  bleached,  printed,  etc.,  1  cent 
per  pound,  and  in  addition  thereto  33  per  cent  ad  valorem. 

Remarks. — An  additional  3  per  cent  ad  valorem  is  asked  on  para- 
graph 1017.  Under  previous  tariffs  a  distinction  has  been  made  be- 
tween fabrics  not  bleached,  printed,  etc.,  and  those  which  have  been 
bleached,  printed,  etc.;  a  like  distinction  was  also  made  on  jute  bags. 
In  H.  R.  7456,  while  a  distinction  is  made  in  the  duties  assessed  on 
cloths  which  have  been  bleached,  printed,  etc.,  and  those  which  have 
not  been  so  treated,  a  similar  distinction  on  bags  has  not  been  made. 

PARAGRAPHS  1009,  1010,  1012,  1013,  1015.— LINEN  FABRICS. 
WITNESS,   AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  W.  A.  McCleary,  representing  linen  importers  and  traders. 

Hearings :  Pages  3483-3485. 

Size  of  industry. — With  the  exception  of  a  very  few  coarse  fabrics, 
usually  mixed  with  cotton,  practically  the  entire  domestic  consump- 
tion is  imported.  To  a  very  large  extent  such  fabrics  are  used  as 
raw  materials  in  the  manufacture  of  dresses,  embroideries,  furniture 
coverings,  waists,  and  for  a  great  many  other  purposes. 

Rates  suggested. — That  Schedule  J  be  reenacted  into  Schedule  10, 
exactly  as  it  stands  in  the  act  of  1913,  both  as  to  wording  and  classifi- 
cation, and  that  the  duty  on  plain  woven  fabrics  or  flax  be  continued 
at  30  per  cent.  This  is  suggested  in  order  to  avoid  dislocation  of 
trade,  and  for  maintaining  revenue,  avoiding  unnecessary  litigation, 
and  preventing  protests  from  consumers  over  the  advance  in  prices 
that  follow  increases  in  duties. 

Remarks. — Any  change  tending  to  increase  prices  to  the  consumer 
will  decrease  revenue  from  duties  and  considerably  cut  down  the 
quantities  imported.  Owing  to  keen  competition,  the  profits  in  the 
linen  trade  are  small,  and  any  increase,  whether  of  market  price  or 
duty,  is  immediately  passed. on  to  the  consumer.  A  change  of  rates 
would  be  quickly  noticed  by  all  users  of  handkerchiefs,  table  cloths, 
wearing  apparel,  etc. 

PARAGRAPH  1010. — PADDINGS  AND  INTERLININGS  OF  FLAX,  HEMP,  AND 

JUTE. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  Maurice  Goldman,  representing  the  Milford  Spinning  &  Weaving  Cor- 
poration, Milford,  N.  H. 

FAVORING  LOWER  DUTIES: 

Mr.  James  Gilmore,  Nutley,.  N.  J.,  representing  importers  of  paddings. 
B.  Kuppenheimer  &  Co.,  Chicago,  111.     (Brief.) 

Hearings :  Pages  3486-3488. 

Witness :  Mr.  Maurice  A.  Goldman,  representing  the  Milford  Spin- 
ning &  Weaving  Corporation. 

Costs  and  selling  prices. — The  wages  paid  in  competing  countries 
are  about  one-third  of  the  domestic. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  379 

Size  of  industry. — Domestic  production  is  about  5,000,000  yards  a 
year  as  against  imports  of  about  50.000,000  yards. 

Comparability. — The  American  product  is  accepted  by  the  trade 
as  being  equal  to  that  of  foreign  manufacture. 

Rates  suggested. — It  is  requested  that  paragraph  1010  of  H.  R. 
7456  read  as  follows : 

Woven  fabrics,  composed  wholly  or  in  chief  value  of  flax,  hemp,  or  jute,  ex- 
ceeding 30  and  not  exceeding  120  threads  to  the  square  inch,  counting  the  warp 
and  filling,  and  weighing  not  less  than  4i  and  not  more  than  12  ounces  per  square 
yard,  used  as  padding- or  iuterlinings  in  clothing,  shall  pay  the  same  duty  per 
pound  as  the  highest  rate  imposed  in  this  act  upon  any  of  the  yarn  of  which 
the  fabric  is  made  and,  in  addition  thereto,  25  per  centum  ad  valorem. 

Remarks. — The  reason  for  making  changes  in  paragraph  1010  is 
that  the  yarns  used  in  the  manufacture  of  these  cloths,  covered  by 
paragraphs  1003  and  1004,  are  dutiable  on  a  specific  basis,  while  the 
finished  product  is  dutiable  under  an  ad  valorem  rate.  Price  fluctua- 
tions bring  about  at  times  a  condition  in  which  the  amount  of  the 
specific  duty  on  the  raw  material  is  greater  than  the  amount  of  the 
ad  valorem  duty  on  the  finished  product.  The  duty  on  paddings  as 
proposed  in  paragraph  1010  would,  under  normal  conditions,  be  only 
two-thirds  as  much  as  the  duty  on  the  yarns.  The  changes  suggested 
would  afford  at  all  times  a  compensatory  duty  for  the  duties  imposed 
on  the  yarns  and  provide  a  differential  for  the  cost  of  converting  the 
yarn  into  paddings. 

Hearings :  Pages  3485-3486. 

Witness:  Mr.  James  Gilmore,  Xutley.  X.  J.,  representing  importers 
of  jute  paddings. 

Size  of  industry. — There  is  no  domestic  industry  in  existence. 
The  cloths  are  of  a  very  low  order. 

Rates  suggested. — Jute  canvas  or  jute  paddings  are  at  present  on 
the  free  list,  and  were  taxed  under  the  acts  of  1897  and  1909  at  15 
per  cent  ad  valorem  and  seven-eighths  of  1  cent  per  pound.  Under 
paragraph  1010  of  H.  R.  7456  they  are  assessed  at  an  extraordinary 
rate  of  duty,  namely,  33  per  cent  ad  valorem  on  American,  valua- 
tion. The  word  "jute"  should  be  eliminated  from  paragraph  1010, 
which  will  cause  jute  paddings  to  fall  under  paragraph  1008,  relat- 
ing to  jute  cloths  in  general.  All- jute  paddings  should  not  come  in 
at  a  higher  rate  of  dutv  than  the  jute  cloths  specified  under  para- 
graph 1008. 

Remarks. — The  clothing  manufacturers  should  be  given  a  chance 
to  bring  in  a  cheap  fabric  required  in  the  very  cheapest  clothing. 
If  the  duty  is  increased  as  proposed  in  paragraph  1010,  there  will 
be  an  increase  of  50  per  cent  in  the  cost  of  a  pair  of  fronts  used  in 
a  coat.  It  does  not  seem  fair  that  such  a  high  rate  of  duty  should 
be  imposed  when  the  clothing  people  are  trying  to  get  the  cost  of 
clothing  down,  especially  the  cost  of  cheaper  clothing. 

Witness:  B.  Kuppenheimer  &  Co.,  Chicago,  111.  (Brief;  no  ap- 
pearance at  hearings.) 

Costs  and  selling  prices. — It  is  inconsistent  to  levy  an  excessive 
tariff  upon  paddings  of  all  jute,  one  of  the  important  raw  materials 
used  by  clothing  manufacturers.  This  will  not  only  prevent  a 
reduction  in  present  costs  but  actually  force  an  increase. 


380  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

Size  of  industry. — As  there  is  no  domestic  industry  manufacturing 
paddings  there  is  no  industry  to  protect,  either  directly  or  indi- 
rectly, by  new  or  increased  duties. 

Rates  suggested. — In  the  absence  of  any  helpful  purpose  and  in  the 
conviction  that  paragraph  1010  as  it  now  stands  will  work  harm, 
it  is  urged  that  the  entire  paragraph  be  stricken  out  of  H.  E.  7456, 
and  that  the  rates  on  materials  used  for  paddings  and  interlinings 
in  clothing  remain  as  in  the  act  of  1913,  namely,  jute  paddings,  free, 
and  linen  paddings  dutiable  at  30  per  cent  ad  valorem. 

Remarks. — Paragraph  1010  of  H.  R.  7456  will  work  grave  hard- 
ship on  the  very  people  it  presumes  to  serve,  for  the  following  rea- 
sons: (1)  It  discriminates  against  clothing  industries  by  proposing 
a  higher  duty  on  materials  used  by  that  industry  than  on  similar 
materials  destined  for  other  industries;  (2)  it  discriminates  and 
penalizes  the  clothing  industry  by  imposing  an  extraordinary  duty 
on  jute  canvas,  which  now  enters  free,  and  increases  the  duty  on 
linen  canvas  more  than  on  other  linen  fabrics;  (3)  materials  specified 
in  paragraph  1010  are  amply  protected,  whether  for  revenue  or  for 
protective  purposes,  by  paragraphs  1008  and  1009  of  the  bill. 

PARAGRAPH  1016. — LINEN  HANDKERCHIEFS. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Joseph  W.  Stein,  representing  Herrnian,  Aukam  &  Co.,  the  Acheson 
Harden  Co.,  Alexander  &  Stein  (Inc.),  I.  C.  Herman  &  Co.,  Long  Hand- 
kerchfef  Co.  (Inc.),  H.  Rosenthal  &  Co.  (Inc.),  Newark  Embroidery  Works, 
Phillips,  Weil  &  Norton,  Schmidt  Fitz-Gibbon  Co.,  E.  Heller  &  Bros.  (Inc.), 
the  International  Handkerchief  Manufacturing  Co.,  and  Duke.  Macmahon 
&Co.  (Brief.) 

Hearings :  Pages  3430^3433. 

Costs  and  selling  prices. — Without  considering  factory  overhead, 
the  American  manufacturer  pays  his  workers  fully  25  per  cent  more 
than  is  paid  to  British  workmen.  At  the  present  rate  of  duty  and 
figuring  the  pound  at  $4,  the  importer  can  land  a  dozen  woman's  col- 
ored woven  border  handkerchiefs  at  58.5  cents  per  dozen  net.  A 
cost  sheet  submitted  shows  that  the  domestic  cost  of  producing  a  simi- 
lar article,  made  of  the  same  material  and  in  the  same  way,  amounts 
to  81.28  cents  per  dozen  net.  Another  example  of  the  great  disad- 
vantage under  which  the  domestic  producer  labors  is  shown  in  the 
item  of  hemstitching.  In  Belfast  the  wage  paid  for  stitching  a  12- 
inch  handkerchief  of  15  stitches  is  2-|  pence  per  dozen.  Granting 
that  the  factory  overhead  of  the  English  producer  is  the  same  as  the 
American,  his  cost  per  dozen  for  hemstitching  is  5  pence,  or  8.40  cents, 
whereas  the  domestic  cost,  including  overhead,  is  14.96  cents. 

Size  of  industry. — The  industry  manufacturing  cotton  and  linen 
handkerchiefs  employs  approximately  10,000  workers  and  the  yearly 
wage  is  from  $7,500,000  to  $10,000,000.  In  the  American  handker- 
chief trade  there  is  actual  open  competition ;  monopoly  is  impossible. 

Comparability. — The  linen  cloth  out  of  which  the  handkerchiefs 
are  made  is  not  produced  in  the  United  States,  but  is  manufactured  in 
Ireland,  shipped  in  the  bleached  state  to  the  United  States,  where  it 
is  cut  up,  hemstitched,  or  otherwise  manufactured. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  381 

Rates  suggested. — In  place  of  paragraph  1015  of  H.  R.  7456  it  is 
Tequested  that  the  following  be  substituted : 

(1)  Handkerchiefs  composed  wholly  or  in  chief  value  of  flax, 
hemp,  or  ramie,  or  vegetable  fiber  other  than  cotton,  whether  in  the 
piece  or  otherwise,  finished  or  unfinished,  but  not  hemmed,  shall  pay 
the  same  rate  of  duty  on  the  cloth  contained  therein  as  is  imposed  by 
this  act  on  cloth  of  the  same  kind  and  description.  (2)  When  such 
handkerchiefs  are  hemmed  they  shall  pay  an  additional  9  per  cent. 
Provided,  That  such  handkerchiefs  shall  not  pay  a  rate  of  duty  of 
less  than  30  per  cent  ad  valorem.  (3)  Handkerchiefs  made  of  the 
foregoing  materials,  in  the  piece  or  otherwise,  finished  or  unfinished, 
hemstitched  or  imitation  hemstitched,  or  revered,  or  having  drawn 
threads,  37^  per  cent.  (4)  Handkerchiefs  composed  of  the  fore- 
going materials,  in  the  piece  or  otherwise,  finished  or  unfinished,  if 
embroidered  in  any  manner  with  an  initial,  letter,  monogram,  or 
otherwise  by  hand  or  machinery,  etc.,  42  per  cent  ad  valorem. 

The  above  rates  are  based  on  American  valuation. 

R&mcerk** — The  British  manufacturer  has  such  great  advantages 
over  the  American  competitor  that  if  it  had  not  been  for  the 
European  war.  which  made  labor  in  this  line  very  scarce,  this  country 
would  have  been  flooded  with  European  handkerchiefs  and  the  ma- 
jority of  the  American  factories  would  have  been  compelled  to  close. 

PARAGRAPH  1018. — LINOLEUM,  OILCLOTH  AND  PAPER-FELT  FLOOR 
COVERINGS. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  J.  Evans,  Lancaster,  Pa.,  representing  manufacturers  of  linoleum, 
oilcloth,  and  felt  floor  coverings. 

Hearings :  Pages  3488-3491. 

Costs  "and  selling  prices. — The  present  comparative  costs  (material, 
labor,  and  overhead)  of  manufacturing  linoleum,  cork  carpet,  and 
corticine  here  and  in  England  are  respectively  $1  for  the  American 
manufacturer  and  71  cents  for  the  foreign.  In  the  manufacture  of 
floor  oilcloth,  for  every  dollar  the  domestic  producer  spends  the 
English  manufacturer  pays  out  79.5  cents. 

Size  of  industry. — In  1904  the  domestic  production  of  linoleum  and 
oilcloth  floor  covering  was  valued  at  $9,700,000,  in  1909  at  $15,500,000, 
and  in  1919  at  $17.600,000.  In  1914  the  capital  invested  was  over 
$20,000,000,  the  persons  engaged  about  5,000,  and  the  salaries  and 
wages  paid  over  $3,000,000.  The  percentage  of  male  employees  in 
1914  was  96  per  cent  of  the  total. 

Rates  suggested. — To  compensate  for  the  difference  in  the  cost  of 
manufacture  of  linoleum  here  and  abroad,  a  duty  of  40  per  cent  ad 
valorem.  This  on  71  cents — the  foreign  cost  of  manufacturing  lino- 
leum— amounts  to  28.4  cents  and  is  practically  equal  to  the  difference 
in  cost  of  production.  Similarly,  a  duty  of  25  per  cent  on  oilcloth 
floor  coverings  would  equalize  the  difference  of  20  cents  between  the 
cost  of  producting  oilcloth  here  and  abroad.  Specific  mention  should 
be  made  of  paper-felt  floor  covering,  which  is  a  new  product,  not 


382  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    74-36. 

heretofore  needing  separate  classification.  Such  paper- felt  covering 
should  bear  the  same  duty  as  oilcloth  for  floors,  its  cost  of  manufac- 
ture being  similar  to  that  of  oilcloth. 

The  suggested  duties  are  based  upon  the  continuance  of  the  present 
rates  of  duty  on  the  materials  used  in  the  manufacture  of  linoleum 
and  floor  oilcloth.  Change  in  these  rates  would  necessitate  a  corre- 
sponding change  in  the  duties  placed  on  the  finished  products.  The 
principal  raw  materials  used  are  burlap,  cork,  linseed  oil,  wood  flour, 
pigments,  lithopone,  and  gums. 

remarks. — From  a  customs  administrative  standpoint  and  from 
the  standpoint  of  the  American  industry,  it  will  be  expedient  to  do 
away  with  the  former  classifications  of  the  product  based  on  width, 
and  have  all  the  various  types  of  linoleum  bear  the  same  rate  of  duty. 
The  act  of  1909,  which  combined  specific  and  ad  valorem  duties, 
made  a  complicated  tariff  paragraph. 

A  comparison  of  present  selling  prices  in  the  United  States  with 
foreign-made  linoleum  would  be  unjust  to  domestic  manufacturers, 
who  have  liquidated  and  charged  off  losses  on  stocks  of  raw  materials 
and  whose  present  selling  prices  are  based  on  market  or  replacement 
values.  On  the  other  hand,  foreign  manufacturers  are  stil]  main- 
taining prices  in  effect  in  April,  1920,  the  highest  charged  in  the  past 
decade. 

PARAGRAPH  1019. — FABRICS  OF  VEGETABLE  FIBER  OTHER  THAN  COT- 
TON, Nor  SPECIALLY  PROVIDED  FOR. 

WITNESS,    AND   INTERESTS   REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  J.  E.  Barbour,  representing  Allentown  Spinning  Co.,  American  Man- 
ufacturing Co.,  Chelsea  Fiber  Mills.  Columbian  Rope  Co.,  Dolphin  Jute 
Mills.  Hanover  Cordage  Co.,  the  Hooven  &  Allison  Co.,  Lanioii',1  &  Robert- 
son Co.,  the  Schlichter  Jute  Cordage  Co.,  the  Sutherland  &  Edwards  Co., 
and  the  Wilmington  Mills. 

Hearings:  Pages  3444-3452. 

Rates  suggested. — The  wording  and  the  duty  under  this  paragraph 
to  be  retained  as  in  the  act  of  1913. 

(For  a  fuller  discussion  of  this  brief,  see  paragraph  1003  relating 
to  jute  yarns  and  cordage.) 

PARAGRAPH  1019. — LINEX  ARTICLES  NOT  SPECIALLY  PROVIDED  FOR. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  W.  A.  McCleary,  representing  linen  importers  and  traders. 

Hearings:  Pages  3147-3149. 

Rates  suggested. — The  duty  of  35  per  cent  ad  valorem,  as  found 
in  the  act  of  1913,  to  be  reenacted. 

(For  a  more  complete  abstract  of  the  brief  presented,  see  par- 
agraph 1009  on  linen  fabrics.) 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  383 

PARAGRAPH  1020. — STRAW  FLOOR  COVERINGS  NOT  SPECIALLY  PROVIDED 

FOR. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  J.  E.  Barbour,  representing  Allentown  Spinning  Co.,  American  Man- 
ufacturing Co.,  Chelsea  Fiber  Mills,  Columbian  Rope  Co.,  Dolphin  Jute 
Mills,  Hanover  Cordage  Co.,  the  Hooven  &  Allison  Co.,  Lamond  &  Robert- 
son Co.,  The  Schlichter  Jute  Cordage  Co.,  The  Sutherland  &  Edwards 
Co.,  and  The  Wilmington  Mills.  (Joint  brief.) 

Hearings:  Page  3450. 

Rates  suggested. — Paragraph  273  of  the  act  of  1913  reads  as  fol- 
lows: 

Carpets,  carpeting,  mats,  and  rugs  made  of  flax,  hemp,  jute,  or  other  veg- 
etable fiber  (except  cotton),  30  per  cent  ad  valorem. 

In  place  of  the  above,  it  is  suggested  that  there  be  imposed  a 
straight  specific  duty  of  12|  cents  per  pound.  (For  a  fuller  abstract 
of  this  brief,  see  paragraph  1003,  relating  to  jute  yarns  and  cordage.) 

PARAGRAPH  1020. — FLOOR  MATTINGS,  MATS,  AND  RUGS  MANUFACTURED 
FROM  STRAW,  RICE,  OR  OTHER  VEGETABLE  SUBSTANCE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  F.  E.  Carstarphen,  representing  the  Grass  and  Fiber  Rug  Manu- 
facturers' Association. 

Mr.  Henry  A.  Dammeyer,  representing  the  Willow  Rug  Co.,  and  the  Grass 
and  Fiber  Manufacturers'  Association. 

FAVORING  LOWER  DUTIES: 

Mr.  J.  M.  MacDonald,  representing  63  importers  and  distributors  located 
in. various  parts  of  the  United  States. 

Hearings:  Pages  3500-3514. 

Witness :  Mr.  F.  E.  Carstarphen,  representing  the  Grass  and  Fiber 
Rug  Manufacturers'  Association. 

Costs  and  selling  prices. — In  pre-war  times,  Japanese  weavers  were 
paid  as  little  as  20  cents  per  day.  In  December,  1919,  the  average 
daily  wage  of  a  weaver  in  Tokyo  was  60  cents  per  day.  A  fair 
estimate  of  the  decline  in  Japanese  wages  since  the  close  of  the 
war  is  about  15  per  cent,  making  a  weaver  receive  at  present  about 
51  cents  per  day.  In  Wisconsin  and  Minnesota,  where  the  bulk  of 
the  domestic  grass  rugs  are  made,  the  hours  worked  per  week  are 
55  and  49^  respectively.  The  minimum  wage  for  women  is  from 
25  cents  per  hour,  required  by  law,  to  28  cents  per  hour  for  piece- 
work. The  minimum  average  wage  for  men  is  31  cents  per  hour. 
Spinners  working  in  the  domestic  grass-rug  industry  earn  from 
$3.50  to  $4.50  per  day;  weavers  from  $3  to  $4;  and  painters  from 
$3.50  to  $4.50  per  day! 

Size  of  industry. — The  domestic  grass-rug  companies,  when  in  full 
operation,  employ  about  1,500  men  and  women  in  the  grass  fields 
and  1,000  men  arid  women  in  the  factories,  and  pay  annually  about 
$1,000.000  in  wages. 

Comparability. — The  Japanese  have  designs  which  are  copies  of 
the  domestic  and  make  it  hard  for  the  laymen  to  distinguish  be- 


384  DIGEST   OF   TARIFF   HEARINGS,   H.   E.    74-56. 

twecn  competing  domestic  and  foreign  rugs.  Japanese  rugs  are  en- 
tered with  flimsy  little  labels  that  are  soon  pulled  off,  with  the  re- 
sult that  Japanese  rugs  are  mixed  among  domestic  rugs. 

Rates  suggested. — In  place  of  paragraph  1020,  it  is  requested  that 
the  following  be  substituted : 

Common  China,  Japan,  and  India  straw  matting,  and  floor  coverings  made 
therefrom,  3  cents  per  square  yard ;  rugs  made  of  rice  straw  or  any  similar 
material,  commonly  known  as  grass  rugs,  and  all  other  floor  coverings  of  like 
character  and  description,  not  specially  provided  for,  4  cents  per  square  foot. 

Remarks. — The  industry  requires  higher  duties  than  were  in  force 
in  1909,  because  of  subsequent  development.  In  1909  the  Japanese 
were  sending  to  this  country  only  clippings  from  mattings.  The 
act  of  1913  was  drawn  up  with  tne  intention  that  the  30  per  cent 
ad  valorem  clause  in  paragraph  273  should  be  applied  to  rugs  and 
that  the  rate  of  2^  cents  per  square  yard  should  apply  only  to  such 
mattings  as  were  made  from  straw.  The  duty  of'  2^  cents  per 
square  yard,  enacted  in  1913,  affords  no  protection,  Japanese  rice 
straw  rugs  measuring  9  by  12  feet,  imported  at  a  cost  of  $3.12  pay 
a  duty  of  only  30  cents,  making  a  total  landed  cost  of  S3.42.  These 
imported  rugs  compete  with  domestic  rugs  costing  the  American 
producer  an  average  of  $8.35  to  manufacture.  The  rates  proposed 
by  H.  R.  7456  increase  the  duty  on  such  a  rug  from  30  cents  to  36 
cents.  Grass  rugs  manufactured  in  this  country  are  in  no  sense  a 
luxury,  but  are  intended  for  the  use  of  families  of  small  and  moderate 
means,  as  a  substitute  for  the  more  expensive  woolen  rugs  and  carpets, 

Hearings:  Pages  3491-3500. 

Witness :  Mr.  Henry  A.  Dammeyer,  representing  the  Willow  Rug 
Co.  and  the  Grass  and  Fiber  Rug  Manufacturers'  Association. 

Costs  and  selling  prices. — The  present  landed  cost,  including  the 
present  duty  on  the  Japanese  rice  straw  rug,  the  only  type  of  rug 
under  this  classification  directly  comparable  and  competitive  with  the 
American  grass  rug,  is  $3.42,  as  against  the  cost,  $8.62,  of  the  domestic 
rug.  a  differential  of  $5.20.  Under  the  26  per  cent  rate  proposed  in 
H.  R.  7456,  the  landed  cost  of  the  Japanese  rug  would  be  $5.365; 
and  under  the  duty  now  proposed  by  the  association — 4  cents  per 
square  foot — the  total  cost  would  be  $7.44  as  compared  with  $8.62 
for  the  domestic  product,  a  differential  of  $1.18  per  rug  in  favor  of 
the  Japanese  article.  The  foreign  product,  however,  would  retail  for 
$1.75  less  than  the  American  grass  rug. 

Size  of  industry. — Domestic  production  increased  steadily  from 
1910  to  1913,  in  the  latter  year  amounting  to  over  6,000,000  square 
yards.  From  1913  to  1919  it  fell  off  to  3,779,000  square  yards.  In 
1920  it  showed  an  increase  over  1919  of  about  700,000  square  yards— 
a  total  production  of  1.500,000  yards  less  than  the  production  of  1913. 
The  importation  of  Japanese  grass  rugs  in  1920  was  the  largest  since 
these  began  to  be  imported,  being  several  times  greater  than  in  1913. 

Comparability. — Though  the  Japanese  rice-straw  rug  and  the 
American  wire-grass  rug  are  similar  in  appearance,  the  wearing  qual- 
ities of  the  domestic  rug  are  twice  as  great  as  those  of  the  foreign. 
The  foreign  product,  made  of  rice  straw  and  rush,  is  very  dry, 
whereas  the  domestic  is  made  of  thin  wire  grass,  which  is  first  woven 
together,  then  spun  and  bound  with  a  binding  warp,  giving  it  greater 
.strength  than  the  foreign  rug. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  385 

Rates  suggested. —  (1)  On  common  China,  Japan,  and  India  straw 
matting,  and  on  floor  coverings  made  therefrom,  imports  of  which 
have  decreased  since  1910,  and  which  do  not  compete  with  domestic 
rugs  except  in  a  remote  way,  the  duty  requested  is  3  cents  per  square 
yard.  (2)  On  rugs  made  of  rice  straw  or  similar  material,  which 
are  directly  comparable  and  competitive  with  the  domestic  product, 
the  duty  requested  is  4  cents  per  square  foot. 

Remarks. — China  and  Japan  matting  does  not  compete  with  do- 
mestic rag  grass  rugs  except  in  a  very  remote  way.  The  Japanese  in- 
dustry manufacturing  rice-straw  rugs,  however,  has  become  so  tre- 
mendous that  the  domestic  manufacturer  of  wire-grass  rugs  is  out 
of  business  to-day.  The  low  rate  of  duty  applied  to  Japanese  grass 
rugs  has  created  such  a  marked  increase  in  the  domestic  demand  that 
small  farmers  and  private  families  in  Japan  have  taken  up  the  in- 
dustry as  a  spare-time  occupation,  resulting  in  an  increased  tendency 
toward  the  abandonment  of  this  line  by  the  larger  Japanese  manufac- 
turers. At  present,  the  number  of  looms  operated  in  households  ex- 
ceeds the  number  owned  by  the  manufacturers,  a  condition  involving 
practically  no  investment  or  overhead  expense.  What  makes  the 
competition  very  serious  is  the  similar  appearance  of  the  two  rugs.  If 
the  domestic  industry  is  to  resume,  the  duty  must  be  somewhere  near 
the  difference  in  the  price  of  the  American  and  the  competing  rugs. 
Hearings :  Pages  3514-3519. 

Witness :  Mr.  J.  M.  MacDonald,  representing  63  importers  and  dis- 
tributors located  in  various  parts  of  the  United  States. 

Costs  and  selling  prices. — According  to  investigations  made  by  the 
Tariff  Commission  in  1919  the  total  labor  cost  on  a  Japanese  rug 
was  $1.67.  The  average  domestic  cost  for  material  and  labor  of 
making  a  similar  rug  was  $4.76.  The  duty  requested  by  domestic 
manufacturers  is  $4.32  per  rug  or  4  cents  per  square  foot. 

Comparability. — There  are  two  general  groups  of  rugs  imported 
under  this  classification:  (1)  Common  China  and  Japan  matting, 
which  was  formerly  imported  in  40-yard  rolls  and  for  which  the 
present  demand  is  practically  confined  to  rugs  cut  and  sewed  together 
from  the  matting;  (2)  a  Japanese  rug  developed  along  the  same  lines 
and  similar,  in  appearance  only,  to  the  domestic  grass  rug.  The  de- 
velopment of  the  latter  type  of  rug  was  created  through  the  demand 
of  the  poorer  classes  in  this  country,  who  wanted  something  better 
than  the  ordinary  Japanese  rug  made  from  matting  and  yet  could 
not  afford  to  pay  the  high  prices  asked  for  the  higher  grade,  better 
quality  American  grass  rug. 

Rates  suggested. — It  is  requested  that  paragraph  1020  be  altered 
by  striking  out  the  following  words  occurring  at  the  end  of  the 
paragraph,  "  26  per  cent  ad  valorem,"  and  substituting  therefor  the 
words  "  6  cents  per  square  yard." 

Remarks. — During  the  10  years  1900  to  1909,  the  average  yearly  im- 
ports of  Chinese  and  Japanese  floor  coverings  were  about  46.000,000 
square  yards;  for  the  period  1910-1914,  26.500,000  square  yards;  and 
for  1915-1920  somewhere  about  16,000,000  square  yards.  The  idea  of 
the  American  manufacturers  in  making  their  very  extravagant  de- 
mands is  that  they  might  succeed  in  getting  more  than  they  are  other- 
wise entitled  to,  and  this  seems  to  have  been  realized  in  their  receiving, 
in  H.  R.  7456,  26  per  cent  under  the  American  valuation  plan.  This 


386  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456. 

is  estimated  to  be  about  67  per  cent  based  on  present  foreign  costs. 
The  present  dutiable  value  of  a  stenciled  rice-straw  rug  amounts  to 
$5.12.  The  duty  proposed  in  H.  R.  7456  is  $3.55  per  rug  as  com- 
pared with  duties  now  in  force  of  38.9  cents  per  rug.  With  a  large 
overhead,  the  total  domestic  cost  of  producing  a  similar  rug  is  $6.50 
Domestic  manufacturers  request  $5.70  on  an  imported  rug  which 
admittedly  is  of  much  poorer  quality  and  much  shorter  durabil- 
ity than  the  domestic  rug.  Further  referring  to  American  valua- 
tion, the  witness  stated  that  any  imports  dissimilar  in  any  one 
of  four  respects,  namely,  material,  quality,  construction,  and^kind, 
can  be  entirely  shut  out  by  domestic  producers  manufacturing 
identical  merchandise  comparable  in  all  respects,  but  not  necessarily 
salable  at  their  asking  price.  The  more  uneconomic  and  expensive 
it  is  to  produce  such  goods  the  better  able  they  will  be  to  sell  their 
regular  goods  which  do  not  compare  with  the  imported. 

PARAGRAPH  1021. — COCOA  MATS  AND  MATTINGS. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  Fred  M.  Cleveland,  representing  Joseph  Wild  &  Co.,  Darragh-Smail  & 

Co.   (Ltd.).  George  Wehn,  Son  &  Co.,  Heywood-Wakefield  Co.,  George  F. 

Kempf  &  Bro.,  and  Wisconsin  Mat  Co. 
The  United  Textile  Workers  of  America.     (Brief.) 

Hearings :  Pages  3519-3522. 

Witness :  Mr.  Fred  M.  Cleveland,  Wakefield,  Mass. 

Costs  and  selling  prices. — A  light  brush  cocoa  mat  having  the 
largest  sale  in  the  trade  can  now  be  bought  at  $3.60  per  dozen  f.  o.  b. 
shipping  point  in  India.  The  rate  on  such  mats  proposed  in  H.  R. 
7456  would  make  the  duty  $3.15.  Adding  freight,  $1  per  dozen,  the 
landed  cost  in  New  York  would  be  $7.75  per  dozen  as  compared  with 
the  lowest  American  wholesale  selling  price  of  $12  per  dozen.  An 
ad  valorem  addition  of  25  per  cent  on  American  valuation,  as  sug- 
gested in  the  submitted  brief,  would  amount  to  $3,  bringing  the 
landed  cost,  under  the  rates  herein  proposed,  to  $10.75  or,  even  then, 
20  per  cent  under  the  domestic  price.  The  witness  quoted  a  letter 
showing  the  offer  made  by  an  importer  to  supply  a  domestic  manu- 
facturer with  his  requirements  in  certain  grades  at  a  lower  price  than 
such  grades  could  be  manufactured  in  this  country. 

Size  of  industry. — In  normal  times  the  domestic  industry  making 
mats  and  mattings  of  cocoa  does  not  employ  over  650  wage  earners. 
The  mills  at  present  are  practically  shut  down  and  there  is  not  an 
American  manufacturer  who  is  running  25  per  cent  capacity. 

Comparability. — Mats  and  mattings  imported  from  India,  though 
designated  by  standard  grade  names  used  in  this  country,  are  in 
reality  one  grade  higher  than  the  American  product.  The  difference 
in  grade  is  equivalent  to  25  per  cent  in  value. 

Rates  suggested. — The  rates  proposed  in  H.  R.  7456  to  be  amended 
by  the  addition  of  an  ad  valorem  duty  of  25  per  cent,  making  the 
paragraph  read : 

Mattings  made  of  cocoa  fiber  or  rattan,  9  cents  per  square  yard,  and  in  addi- 
tion thereto.  25  per  cent  ad  valorem ;  mats  made  of  cocoa  fiber  or  rattan,  7  cents 
per  square  foot,  and  in  addition  thereto,  25  per  cent  ad  valorem. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  387 

Remarks. — Unless  some  protection  beyond  that  given  in  H.  R. 
7456  is  granted  there  is  no  prospect  of  resuming  the  domestic  manu- 
facture of  mats  and  mattings.  There  is  now  more  than  a  year's  sup- 
ply of  imported  mats  and  mattings  in  this  country.  The  principal 
handicap  of  the  American  manufacturer  is  the  low  cost  of  Indian 
labor,  many  of  the  mats  being  woven  in  the  huts  of  the  coolies.  Until 
1914,  Indian  mats  were  marketed  principally  in  Europe  and  Aus- 
tralia. When  the  demand  of  these  markets  was  curtailed  the  United 
States  became  the  chief  market.  The  tariff  of  1890  gave  a  duty  on 
matting  of  12  cents  per  square  yard,  and  on  mats  8  cents  per  square 
foot,  although  at  that  time  imports  of  mats  from  India  were  only 
small  in  quantity. 

Witness:  The  United  Textile  Workers  of  America.  (Brief;  no 
appearance  at  hearings.) 

The  brief  presents  the  position  of  American  labor  in  regard  to  im- 
ports of  fiber  mats. 

In  the  last  18  months  the  workers  in  this  industry  have  worked 
less  than  one-quarter  of  the  time;  the  situation  is  one  of  grave  con- 
cern. With  imports  of  2,103,337  square  feet  in  1920  and  a  prospec- 
tive volume  of  3,000,000  square  feet  in  1921,  sufficient  mats  and  mat- 
tings have  been  imported  to  supply  American  demands  for  nearly 
two  years. 

Low  foreign  labor  cost,  particularly  in  India,  is  pointed  to  as  the 
chief  cause  of  present  conditions.  The  duties  proposed  in  H.  R. 
7456  being  inadequate  to  meet  the  case,  an  additional  25  per  cent  ad 
valorem  duty  is  requested. 

SCHEDULE  11.— WOOL  AND  MANUFACTURES  OF. 
INTRODUCTION. 

WITNESSES  : 

Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen  Manufacturers'  Asso- 
ciation, Boston,  Mass. 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manufac- 
turers, Philadelphia,  Pa. 

Hearings :  Pages  3570-3634. 

Witness:  Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen 
Manufacturers'  Association. 

The  testimony  and  printed  data  submitted  by  the  witness  in  behalf 
of  the  Carded  Woolen  Manufacturers'  Association  are  too  extended 
to  allow  of  more  than  an  indication  of  their  general  trend.  The  testi- 
mony includes  a  brief  of  the  association,  printed  in  full  on  pages 
3593-3634. 

The  association  is  in  favor  of  ad  valorem,  rather  than  specific, 
duties  on  new  wool,  reclaimed,  wool,  wool  by-products,  and  partly 
or  wholly  manufactured  wool  products.  The  objections  to  specific 
duties  are  detailed  and  counter  arguments  to  those  urged  against 
ad  valorem  duties  are  presented.  Mr.  Dale  bases  his  suggestions  in 
regard  to  tariff  rates  on  foreign  valuations,  preferring  to  await 
developments  before  identifying  himself  with  the  American  valua- 
tion plan. 

The  witness  discussed  the  relative  advantages  of  ad  valorem  and 
specific  rates  of  duty  in  connection  with  compensatory  allowances 
on  grease  and  scoured  bases.  He  recommends  that  an  investigation 


388  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

be  made  to  determine  the  raw  material  and  conversion  costs  of  partly 
and  wholly  manufactured  goods  as  a  step  toward  an  equitable  adjust- 
ment of  rates. 

Abstracts  of  the  witness's  testimony  on  individual  paragraphs,, 
under  separate  headings,  follow  the  brief  summary  of  Mr.  John  P. 
Wood's  testimony  on  the  general  question. 

Hearings :  Pages  3525-3570. 

Witness:  Mr.  John  P.  Wood,  representing  the  Xational  Associa- 
tion of  Wool  Manufacturers. 

As  in  the  case  of  Mr.  Dale,  detailed  reference  to  Mr.  Wood's  testi- 
mony on  the  entire  wool  schedule  is  impracticable.  The  following 
observations  may  serve  to  indicate  its  general  trend,  leaving  more 
specific  references  to  be  dealt  with  under  individual  paragraphs. 

The  difficulties  attending  a  comprehensive  cost  investigation  at 
this  time  are  emphasized,  but  light  may  be  thrown  upon  the  ade- 
quacy, or  otherwise,  of  rates  of  duty  by  reviewing  conditions  exist- 
ing under  former  tariffs.  The  witness  cites  in  this  connection  tables 
comparing  the  rates  on  wool  manufactures  under  H.  E.  7456  with 
those  in  the  acts  of  1894,  1897,  1909,  and  1913;  also  official  compari- 
sons of  foreign  and  domestic  wages.  The  possibility  of  international 
tariff  concessions  under  the  provisions  of  section  303  of  the  bill 
and  of  reductions  of  duties  on  goods  imported  in  American  vessels 
should  also  be  kept  in  view. 

The  witness  is  not  in  agreement  with  Mr.  Dale  in  regard  to  the 
basis  of  duties,  believing,  as  he  does,  that  there  are  serious  difficul- 
ties in  the  way  of  an  equitable  adjustment  of  ad  valorem  duties. 
While  favoring  the  American  .valuation  plan,  he  is  opposed  to  flex- 
ible duties  as  a  part  of  it. 

The  witness  recommends  investigation  by  the  Tariff  Commission 
of  the  Forstmann  plan  for  levying  duties  on  wool  manufacturesr 
under  which  the  rate  of  duty  would  be  based  upon  the  American 
conversion  cost  and  legislated  by  Congress  upon  findings  by  the 
Tariff  Commission.  He  finds  that  the  compensatory  duties  on  wool 
tops,  yarn,  and  fabrics  in  H.  R.  7456  have  been  based  upon  the  rate 
of  duty  (25  cents  per  pound)  levied  upon  the  clean  content  of  grease 
wool,  rather  than  upon  the  rate  of  duty  (26  cents  per  pound)  levied 
upon  wool  imported  in  the  scoured  condition;  he  regards  the  latter 
as  the  proper  basis. 

Mr.  Wood's  recommendations  of  changes  in  the  wording  and  rates 
of  duty  in  particular  paragraphs  appear  under  such  paragraphs. 

PARAGRAPHS  1101  AND  1102.— RAW  WOOL. 
WITNESSES,  AND  INTEBESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Ohio  Woolgrowers'  Association,  Marysville,  Ohio.     (Brief.) 

FAVORING  OR  TESTIFYING  RELATIVE  TO  RECLASSIFICATION    (f.  e.,  TO  THE  BASIS 
UPON  WHICH  RAW-WOOL  DUTY  SHOULD  BE  LEVIED)  : 

Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen  Manufacturers'  Asso- 
ciation, Boston,  Mass. 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manu- 
facturers, Philadelphia,  Pa. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  389 

FAVORING  LOWER  DUTIES  : 

Mr.  William  Goldman,  representing  Cohen,  Goldman  &  Co.,  clothing  manu- 
facturers, New  York  City. 
Mr.  Andrew  J.  Solis,  representing  A.  J.  Soils  &  Co.,  Boston,  Mass. 

Wool  on  the  skin. 

FAVORING  LOWER  DUTIES  (RELATIVE  TO  THOSE  ON  SHORN  WOOL)  : 

Mr.  T.  F.  Harrington,  of  J.  J.  Harrington  &  Co.,  representing  the  wool- 
pulling  industry,  New  York  City. 

Mohair. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  R.  E.  Taylor,  representing  the  National  Mohair  Growers'  Association, 
Carlsbad,  N.  Mex. 

Hair  of  camel,  alpaca,  llama,  etc. 
FAVORING  LOWER  DUTIES  : 

The  Peruvian  Ambassador.     (Letter  to  United  States  Secretary  of  State.) 
REQUESTING  RECLASSIFICATION  : 

J.  S.  Radford,  representing  the  Oriental  Textile  Mills,  Houston,  Tex. 

"Witness:  The  Ohio  Woolgrowers'  Association.  (Brief;  no  ap- 
pearance at  hearings.) 

Rates  suggested. — A  specific  duty  of  33  cents  per  pound  clean  con- 
tent. The  brief  directs  attention  to  the  Republican  platform  pledge 
to  give  the  sheep  industry  of  the  United  States  "  a  square  deal  " ;  the 
brief  asserts  that  H.  R.  7456  ad  valorem  tariff  on  raw  wool  would 
give  the  least  protection  when  most  needed  and  that,  at  the  present 
rate  of  decline  of  sheep  raising  in  this  country,  there  will  be  none 
at  the  end  of  15  years.  The  committee  is  asked  to  read  carefully 
the  statement  already  filed  with  it  by  the  National  Sheep  and  Wool 
Bureau  of  the  United  States. 

Hearings:  Pages  3635-3636. 

Witness :  Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen 
Manufacturers'  Association. 

Rates  suggested. — Witness"  advocates  ad  valorem  duties  on  raw 
wool.  Without  making  a  recommendation  as  to  the  amount  of  that 
duty,  he  suggests  that  50  per  cent  ad  valorem,  foreign  valuation, 
would  provide  adequate  protection  to  the  wool-growing  industry 
without  imposing  any  serious  burden  upon  the  consumers  or  the 
manufacturing  industry.  (For  reference  to  arguments  of  the  wit- 
ness in  favor  of  ad  valorem  duties  on  wool  and  wool  manufactures, 
see  digest  of  his  testimony,  above,  under  the  title  "  Introduction.") 

Hearings :  Pages  3526-3527. 

Witness:  Mr.  John  P.  Wood,  representing  the  National  Associa- 
tion of  Wool  Manufacturers. 

Rates  suggested. — The  National  Association  of  Wool  Manufac- 
turers advocates  duties  on  raw  wool  adequate  to  protect  the  domestic 
woolgrowing  industry. 

The  method  by  which  the  duty  on  raw  wool  shall  be  applied  is  of 
great  concern  to  the  wool  manufacturer.  There  are  three  alternative 
methods : 

(a)  Ad  valorem  duties. — This  method  would  be  most  equitable  to 
the  importer  and  the  user,  but  is  subject  (in  a  peculiar  degree  because 

77134—22 26 


390  DIGEST   OF   TARIFF    HEARINGS,   H.    R.    74-56. 

of  the  wide  fluctuations  in  wool  prices)  to  the  weakness  generally 
attributed  to  the  ad  valorem  principle,  and  it  raises  an  insuperable 
difficulty  as  regards  compensatory  duties  (p.  3526)  :  see  also  page 
3539;  also  testimony  of  S.  S.  Dale,  pages  3570-3634,  digested  above. 

(b)  Specif c  duties  on  "  dean  content.'' — This  would  be  decidedly 
the  best  method  if  it  were  not  for  the  wide  range  of  varieties  of  wool, 
embracing  differences  in  the  manner  of  utilization  and  in  their  in- 
trinsic and  market  values.    A  graduated  scale  of  specific  duties  would 
tend  to  correct  this,  but  any  such  scale,  adequately  subdivided,  would 
be  administratively  impracticable. 

(c)  Specif ed  duties,  grease  basis. — This  method,  though  open  to 
well-known  objections,  has  been  adopted  in  former  tariff  laws  be- 
cause no  other  method  would  afford  equal  protection  with  less  ground 
for  criticism.    A  uniform  basic  rate  of  duty  on  unwashed  wool  does 
not  fall  with  equal  incidence  on  the  clean  content  of  all  grades,  but 
it  results  in  less  inequality  than  the  uniform  specific  rate  on  the  clean 
content,  because  variations  in  shrinkage  do  have  some  correspondence 
with  variations  in  the  fineness  of  the  wool  and  in  its  market  value. 
The  clean-content  rate  in  the  pending  bill  would  result  in  excessive 
ad  valorem  equivalents  on  the  coarser  and  cheaper  wools  which  enter 
into  the  lower-price  goods. 

To  render  future  statistics  on  raw  wool  comparable  with  past  sta- 
tistics, the  witness  recommends  designation  of  wools  in  paragraph 
1101  as  class  3;  in  paragraph  1102,  as  classes  1  and  2. 

Hearings :  Pages  3708-3719. 

Witness:  Mr.  William  Goldman,  representing  Cohen,  Goldman  & 
Co.,  clothing  manufacturers.  New  York  City. 

Rates  suggested. — On  raw  wool,  a  compound  duty  of  5  cents  per 
grease  pound  plus  20  per  cent  ad  valorem,  foreign  valuation.  (Re- 
garding the  advantages  of  such  a  form  of  duty,  as  urged  by  witness, 
see  pp.  3710-3711.) 

Remarks. — The  proposal  to  tax  raw  wool  25  cents  per  pound,  clean 
content,  is  regarded  by  the  witness  as  a  proposal  to  tax  the  American 
people  $250,000,000  on  its  annual  clothes  bill  to  protect  the  wool- 
growers,  the  total  value  of  whose  output  is  only  $65,000,000  annually 
(p.  3709).  It  takes  about  4  pounds  of  clean  .wool  to  make  a  man's 
suit,  which,  at  25  cents  duty  per  clean  pound,  would  be  $1  per  suit.  But 
as  the  wool  passes  from  the  wool  merchant  through  the  hands  of  the 
spinner,  the  weaver,  the  clothing  manufacturer,  and  the  retailer 
(and,  not  infrequently,  of  a  cloth  jobber  and  a  clothing  jobber  also), 
this  $1  is  pyramided  until  it  amounts  to  $2.75  to  $3  per  suit.  The 
retail  value  of  wool  clothing  consumed  annually  in  the  United  States 
is  estimated  at  about  $3,000.000,000.  Assuming  $2.75  to  $3  to  repre- 
sent about  10  per  cent  of  the  price  of  a  suit,  the  pyramided  duty  on  the 
wool  in  this  clothing  would  aggregate  about  $300.000.000:  allowing 
for  the  use  of  shoddy,  cotton,  etc..  this  may  be  reduced  to  $250,000,000. 
A  prominent  woolnian  estimates  the  value  of  the  domestic  output  as 
$65,000,000. 

The  clothing  manufacturer  is  particularly  concerned,  because  a 
duty  of  25  cents  per  pound  on  wool,  clean  content,  would  seriously 
curtail  distribution  and  lessen  employment  in  both  the  woolen  and 
the  clothing  manufacturing  industries.  It  is  the  duty  on  raw  wool. 
as  it  affects  the  clothing  distributor,  not  the  duty  on  wool  manu- 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  391 

factures  (practically  all  of  which  are  made  in  the  United  States  under 
keenly  competitive  conditions  and  sold,  in  the  main,  far  below  the 
tariff  wall),  that  vitally  concerns  the  clothing  manufacturer. 

Hearings:  Pages  3706-3708. 

Witness:  Mr.  Andrew  J.  Solis,  representing  A.  J.  Solis  &  Co., 
Boston. 

Kates  suggested. — The  witness  is  opposed  to  high  duties  on  raw 
wool. 

Hearings :  Pages  3636-3640. 

Witness:  Mr.  T.  F.  Harrington,  of  J.  J.  Harrington  &  Co.,  New 
York,  representing  the  wool-pulling  industry. 

Costs  and  selling  prices. — The  cost  of  pulling  wool  is  22  cents  per 
skin,  which,  at  4£  pounds  per  skin,  makes  about  5  cents  per  grease 
pound.  Wools  on  the  skin  are  uniformly  of  higher  shrinkage  than 
shorn  wools  of  the  same  class,  this  being  due  to  the  presence  of  blood, 
dirt,  tag  locks,  etc. ;  so  that  a  fairly  high  shrinkage  must  be  taken 
in  computing  the  pulling  cost  per  scoured  pound.  Assuming  an 
average  shrinkage  of  40  per  cent,  the  pulling  cost  per  scoured  pound 
would  be  8  cents.  It  costs  much  more  to  pull  wool  than  to  shear  it. 

Size  of  the  industry. — The  witness  gives  the  names  of  16  wool- 
pulling  concerns  for  whom  he  is  testifying.  About  30  per  cent  of  the 
skins  pulled  in  this  country  (aside  from  carpet  wools)  are  imported. 

Rates  suggested. — The  differential  duty  in  the  pending  bill  between 
shorn  wools  and  wool  on  the  skin,  namely,  1  cent  per  scoured  pound, 
should  be  increased  to  8  cents  per  scoured  pound. 

Remarks. — Under  the  Payne- Aldrich  bill,  when  on  Class  I  wools 
the  differential  between  the  shorn  wool  and  skin  wool  duty  was  1  cent 
per  grease  pound,  it  was  practically  impossible  to  import  such  wool 
on  the  skin.  With  the  shorn  wool  dutiable  at  11  cents  per  jjrease 
pound  and  the  wool  on  the  skin  at  10  cents  per  grease  pound,  the 
difference  was  10  per  cent.  Under  the  pending  bill,  these  duties  are, 
respectively,  25  cents  and  24  cents  per  scoured  pound — a  difference 
of  only  4  per  cent. 

Hearings :  Pages  3724-3733. 

Witness:  Mr.  K.  E.  Taylor,  of  Carlsbad,  N.  Mex.,  representing 
the  National  Mohair  Growers'  Association. 

Costs  and  selling  prices. — Government  statistics  out  the  prewar 
cost  per  pound  to  produce  mohair  at  23  cents.  Witness  gave  the 
present  cost  in  New  Mexico  as  30  to  32  cents;  in  California  and 
Oregon,  35  to  37  cents.  Herders  in  South  Africa  are  paid  $13.50 
per  month ;  in  the  United  States,  $35  to  $45  per  month. 

From  1910  to  1917,  the  average  price  of  domestic  mohair  was 
about  31  cents  per  pound:  early  in  1919,  60  cents  per  pound;  but 
later  it  dropped  as  low  as  16  cents,  and  in  1920  a  great  deal  of  it  sold 
at  this  price.  In  August.  1921,  Cape  mohair  (from  South  Africa) 
was  offered  to  domestic  manufacturers,  landed  in  Boston,  at  26  cents 
per  pound.  (This  included  the  duty  of  15  cents  and  charges  of  per- 
haps 5  or  6  cents  per  pound.) 

Size  of  industry.— From  19}4  to  1919.  about  6.000,000  pounds  of 
mohair  were  sheared  annually  in  Texas,  Oregon.  New  Mexico,  Cali- 


392        .  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

forma,  and  Arizona.    There  are,  at  present.  2.100,000  Angora  goats 
in  the  United  States,  of  which  Texas  has  more  than  half. 

Rates  suggested. — On  mohair,  the  duty  to  be  increased  (from  25 
cents  per  scoured  pound  in  Hi  R.  7456)  to  33  cents  per  scoured 
pound. 

Witness:  The  Peruvian  Ambassador.  (Letter  of  November  29, 
1921,  to  the  Secretary  of  State;  no  appearance  at  hearings.) 

Rates  suggested. — Attention  is  directed  to  "the  fact  that  alpaca 
wools,  exclusively  imported  from  Peru,  do  not  enter  into  any  com- 
petition whatsoever  with  the  wool  of  this  country,  and,  on  the  con- 
trary, are  the  basis  of  a  commercial  interchange  that  is  equally 
beneficial  to  our  respective  countries."  The  ambassador  proceeds  to 
inquire  how  the  commerce  of  southern  Peru  could  draw  its  supplies 
of  manufactured  articles  from  the  American  market  if  the  latter 
country  should  exchange  the  main  staple  of  export  of  that  section  of 
Peru. 

Hearings :  Pages  3635-3636. 

Witness:  Mr.  J.  S.  Radford.  representing  the  Oriental  Textile 
Mills,  of  Houston,  Tex. 

Remarks. — Alpaca  and  llama  hair  should  be  taken  out  of  para- 
graph 1102  and  classed  with  cameFs  hair  in  paragraph  1101.  They 
belong  more  properly  with  the  Class  III  wools  (carpet  wools,  par. 
1101)  than  with  the  Class  I  and  II  wools  (clothing  and  combing 
wools,  par.  1102).  The  act  of  1909  contained  the  same  mistake  in 
classification.  Moreover,  the  act  of  1909  drew  a  false  distinction 
by  classing  Russian  camel's  hair  with  the  Class  III  wools  and  China 
and  other  camel's  hair  with  the  Class  II  wools  at  a  higher  duty, 
whereas  the  China  camel's  hair  is  almost  identical  with  the  Rus- 
sian! All  camel's  hair  has  been  classed  with  the  carpet  wools  in 
paragraph  1101  in  the  pending  bill  and  should  be  left  there. 

PARAGRAPH  1105. — WOOL  WASTES. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manufac- 
turers. 

Hearings :  Page  3527. 

Rates  suggested. — The  duties  on  top  waste,  slubbing  waste,  ring 
waste,  garnetted  waste,  noils  (carbonized  and  uncarbonized),  thread 
and  yarn  waste,  should  bear  the  same  ratio  to  the  duty  on  scoured 
wool  that  the  respective  prices  of  these  materials  bear  to  clean  new 
wools.  The  rates  in  the  bill  appear  to  be  approximately  correct  for 
a  26-cent  scoured  wool  duty. 

The  rates  on  shoddy,  wool  extract,  mungo  rags,  and  flocks  are  not 
designed  for  either  protection  or  revenue,  but  to  prevent  importation 
of  these  materials.  The  association  approves  a  continuance  of  this 
policy. 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456.  393 

PARAGRAPH  1106. — WOOL  TOPS,  ROVING,  ETC. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manufac- 
turers. 

Hearings :  Pages  3530-3531. 

Costs  and  selling  prices. — For  statement  showing  the  differences 
between  foreign  and  domestic  costs  of  tops,  see  page  3570. 
Rates  suggested. — Alternatives : 

(a)  Ad  valorem  basis. — On  wool  tops,  1.1  times  the  rate  per  pound 
on  scoured  wool  and,  in  addition  thereto,  if  valued  at  not  more  than 
60  cents  per  pound,  15  per  cent;  if  valued  at  more  than  60  cents  per 
pound,  20  per  cent. 

(b)  Specific  basis. — On  wool  tops.  1.1  times  the  rate  per  pound 
on  scoured  wool,  and  in  addition  thereto  15  cents  per  pound :  Pro- 
vided, That  in  no  case  shall  the  rate  exceed  20  per  cent  ad  valorem. 
(All  of  the  foregoing  based  upon  American  valuation.) 

Remarks. — Paragraph  1106  covers,  aside  from  tops  and  roving, 
"  wool  which  has  been  advanced  in  any  manner  or  by  any  process 
of  manufacture  beyond  the  washed  or  scoured  condition,  n.  s.  p.  f." 
This  is  in  conflict  with  the  basket  provision  for  manufactures  of 
wool  n.  s.  p.  f.,  paragraph  1120,  and  there  is  a  possibility  that  manu- 
factures of  wool  will  fall  under  paragraph  1106  at  the  relatively 
low  rates  of  duty  provided  for  tops. 

Roving,  being  further  advanced  in  manufacture  than  tops,  and  in 
some  sizes  indistinguishable  from  the  coarser  sizes  of  yarn,  should 
be  included  with  yarns  in  paragraph  1107. 

PARAGRAPH  1107. — WOOL  YARN. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manu- 
facturers, Philadelphia,  Pa. 

Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen  Manufacturers'  Asso- 
ciation, Boston,  Mass. 

Hearings :  Page  3531. 

Witness :  Mr.  John  P.  Wood,  representing  the  National  Association 
of  Wool  Manufacturers. 

'     Costs  and  selling  prices. — For  statement  of  differences  between 
domestic  and  foreign  costs  of  worsted  yarns,  see  pages  3547-3548. 

Rates  suggested:  Alternatives: 

(a)  Ad  valorem  basis. — On  yarn  and  roving  the  duty  shall  be,  if 
valued  at  not  more  than  60  cents  per  pound  (American  valuation), 
five-sixths  of  the  duty  on  1  pound  of  scoured  wool  ;•  if  valued  at  more 
than  60  cents  per  pound,  1.2  times  the  duty  on  1  pound  of  scoured 
wool;  and  in  addition  thereto,  on  all  the  foregoing  numbers  up  to 
40s,  25  per  cent  ad  valorem,  and  on  all  the  foregoing  numbers  over 
40s,  30  per  cent  ad  valorem. 

(b)  Specific  basis. — The  word  "  number,"  as  used  in  this  connection 
when  applied  to  worsted  yarns,  shall  be  the  number  of  hanks  per 


394  DIGEST   OF   TARIFF    HEARINGS,    H.   R.    7456. 

pound,  a  hank  being  a  measure  of  560  yards  of  single  yarn  or  roving ; 
and  when  applied  to  woolen  yarns  shall  be  the  number  of  hanks  per 
pound,  a  hank  being  a  measure  of  300  yards  of  single  yarn  or  roving. 
On  wool  or  tops  advanced  by  process  of  manufacture  to  any  number 
of  sliver,  or  roving,  of  single  yarn,  if  valued  at  not  more  than  60 
cents  per  pound  (American  valuation),  five-sixths  of  the  duty  on  1 
pound  of  scoured  wool ;  if  valued  at  more  than  60  cents  per  pound, 
1.2  times  the  duty  on  1  pound  of  scoured  wool;  and  in  addition 
to  all  of  the  foregoing  the  following : 

Up  to  and  including  single  12s. — 17  cents  per  pound. 

Single  13s  to  singlc^JOs,  inclusive. — 17  cents  per  pound  plus  one-half  cent  per 
number  per  pound  for  all  numbers  in  excess  of  single  12s. 

Single  31s  to  single  60s,  inclusive. — 26  cents  per  pound  plus  1  cent  per  number 
per  pound  for  all  numbers  in  excess  of  single  30s. 

Exceeding  single  60s. — 56  cents  per  pound  plus  11  cents  per  number  per  pound 
on  all  numbers  in  excess  of  single  60s. 

On  rovings  and  yarns  advanced  beyond  the  condition  of  singles  by 
grouping  two  or  more  rovings  or  yarns  together : 

Up  to  and  including  12s. — 3  cents  per  pound  in  addition  to  the  foregoing  duties 
on  single  yarns  of  corresponding  numbers. 

13s  to  30s,  inclusive. — 3  cents  per  pound  plus  one-eighth  cent  per  number  per 
pound  on  all  numbers  in  excess  of  12s,  in  addition  to  the  duties  on  single  yarns 
of  corresponding  numbers. 

31s  to  60s,  inclusive. — 5i  cents  per  pound  plus  one-fourth  cent  per  number  per 
pound  on  all  numbers  in  excess  of  30s,  in  addition  to  the  duties  on  single  yarns 
of  corresponding  numbers. 

Exceeding  60s. — 12f  cents  per  pound  plus  three-eighths  cent  per  number  per 
pound  on  all  numbers  in  excess  of  60s,  in  addition  to  the  duties  on  single  yarns 
of  corresponding  numbers. 

On  any  of  the  foregoing,  when  bleached,  dyed,  colored,  stained,  or 
printed,  the  duty  shall  be  10  cents  per  pound ;  if  singed  or  gassed,  a 
further  additional  duty  of  5  cents  per  pound. 

Hearings:  Pages  3607-3608. 

Witness :  Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen 
Manufacturers'  Association. 

Rates  suggested. — The  witness  advocates  ad  valorem  duties  on  wool 
yarn.  Without  making  a  definite  recommendation  as  to  the  height 
of  the  duty,  he  points  out  that  if  a  duty  of  50  per  cent  ad  valorem, 
foreign  valuation  (which  he  believes  would  be  fair  to  the  wool 
growers  and  the  wool  manufacturers)  were  established  on  raw  wool, 
the  rate  on  yarn,  calculated  as  explained  by  him,  would  be  65  per 
cent.  (For  reference  to  arguments  by  the  witness  in  favor  of  ad 
valorem  duties  on  wool  and  wool  manufactures,  see  digest  of  his  testi- 
mony, above,  under  the  title  "  Introduction." 

PARAGRAPH  1108. — LIGHT-WEIGHT  WOOL  FABRICS,  WOVEN. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manu- 
facturers; address,  Philadelphia,  Pa. 

Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen  Manufacturers'  As- 
sociation; address,  Boston,  Mass. 

Hearings :  Page  3531-3532. 

Witness :  Mr.  John  P.  Wood,  representing  the  National  Association 
of  Wool  Manufacturers. 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7453.  395 

Hates  suggested. — On  woven  fabrics,  weighing  not  more  than  4 
ounces  per  square  yard,  wholly  or  in  part  of  wool,  valued  at  not  more 
than  $1.25  per  pound,  1.1  times  the  rate  of  duty  on  1  pound  of 
scoured  wool  of  the  first  class,  and,  in  addition  thereto,  25  per 
cent  ad  valorem:  valued  at  more  than  $1.25  and  not  more  than  $2.50 
per  pound,  1.4  times  the  rate  of  duty  on  1  pound  of  scoured  wool  of 
the  first  class,  and.  in  addition  thereto,  30  per  cent  ad  valorem; 
valued  at  more  than  $2.50  per  pound,  1.5  times  the  rate  of  duty  on 
1  pound  of  scoured  wool  of  the  first  class,  and,  in  addition  thereto, 
33  per  cent  ad  valorem :  Provided,  That  if  the  warp  of  any  of  the 
foregoing  is  wholly  of  cotton  or  other  vegetable  fiber,  the  specific 
duty  shall  be  1  time  the  rate  of  duty  on  1  pound  of  scoured  w^ool  of 
the  "first  class  and  the  ad  valorem  duties  shall  be  as  provided  in  this 
paragraph. 

NOTE. — Touching  that  class  of  the  foregoing  fabrics  valued  at  not  more  than 
$1.25  per  pound,  there  is  a  conflict  in  the  duty  recommended  by  the  witness, 
possibly  due  to  an  error  in  printing.  In  the  substitute  paragraph  a  compen- 
satory duty  of  1.1  times  the  rate  of  duty  on  1  pound  of  scoured  wool  of  the  first 
class  is  recommended;  but,  in  a  condensed  statement  of  the  rates  proposed,  fol- 
lowing the  substitute  paragraph,  the  compensatory  rate  is  given  as  1.2  times  the 
rate  of  duty  on  1  pound  of  scoured  wool  of  the  first  class. 


Hearings :  Pages  3607-< 

Witness:  Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen 
Manufacturers'  Association. 

Rates  suggested. — The  witness  advocates  ad  valorem  duties  on  wool 
fabrics.  While  making  no  definite  recommendation  as  to  the  rate  of 
duty,  he  suggests  that  in  case  of  the  adoption  of  a  duty  of  50  per  cent 
ad  valorem,  foreign  valuation,  on  raw  wool  (which  he  believes  would 
be  fair),  the  ad  valorem  rate  on  wool  cloth  would  be  75  per  cent,  cal- 
culated as  explained  by  witness.  (For  reference  to  arguments  of  the 
witness  in  favor  of  ad  valorem  duties  on  wool  and  wool  manufac- 
tures, see  digest  of  his  testimony,  above,  under  the  title  "  Introduc- 
tion.") 

PARAGRAPH  1109. — HEAVY-WEIGHT  WOOL,  FABRICS,  WOVEN. 
WITNESSES,  AND  INTEBKSTS  BEPBESENTED. 

FAVOBING  PBOPOSED  OB  HIGHEB  DUTIES  : 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manu- 
facturers, Philadelphia,  Pa. 

Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen  Manufacturers'  Asso- 
ciation, Boston,  Mass. 

Hearings:  Pages  3531-3532. 

Witness :  Mr.  John  P.  Wood,  representing  the  National  Associa- 
tion of  Wool  Manufacturers. 

Rates  suggested. — Woven  fabrics  weighing  more  than  4  ounces  per 
square  yard,  and  all  manufactures  of  every  description  not  specially 
provided  for,  composed  wholly  of  wool,  or  of  which  wool  is  a  com- 
ponent part,  whether  or  not  constituting  chief  value,  valued  at  not 
more  than  75  cents  per  pound,  one  and  one-tenth  times  the  rate  of 
duty  on  1  pound  of  scoured  wool  of  the  first  class  and,  in  addition 
thereto,  22  per  cent  ad  valorem :  valued  at  more  than  75  cents  but  not 
more  than  $1.25  per  pound,  one  and  two-tenths  times  the  rate  of  duty 
on  1  pound  of  scoured  wool  of  the  first  class  and,  in  addition  thereto, 


396  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

25  per  cent  ad  valorem ;  valued  at  more  than  $1.25  but  not  more  than 
$2.50  per  pound,  one  and  three-tenths  times  the  rate  of  duty  on  1 
pound  of  scoured  wool  of  the  first  class  and  30  per  cent  ad  valorem ; 
valued  at  more  than  $2.50  per  pound,  one  and  one-half  times  the  rate 
of  duty  on  1  pound  of  scoured  wool  of  the  first  class  and  33  per  cent 
ad  valorem. 

Remarks. — The  basket  clause  reading  "  all  manufactures  of  every 
description,  n.  s.  p.  f.,"  etc.,  is  inserted  as  a  substitute  for  paragraph 
1120,  the  so-called  basket  paragraph  of  the  wool  schedule.  This  is 
done  in  order  that  manufactures  of  wool  shall  be  subject  to  compensa- 
tory duties  in  place  of  the  single  ad  valorem  rate  of  25  per  cent  con- 
tained in  paragraph  1120. 

It  is  suggested  that  braids,  laces,  galloons,  embroidered  wearing 
apparel,  and  other  miscellaneous  articles  made  wholly  or  in  part  of 
wool,  included  in  the  pending  bill  under  paragraph  1430  (covering 
laces,  embroideries,  etc.),  be  restored  to  schedule  11  with  a  com- 
pensatory duty  equal  to  that  allowed  upon  woven  fabrics.  (While 
the  witness  does  not  explicitly  so  state,  it  seems  to  be  implied  that 
this  transfer  should  be  effected  by  inserting  an  eo  nomine  pro- 
vision for  such  articles  in  paragraph  1109,  or  else  by  inserting  an 
eo  nomine  exemption  of  these  articles  in  paragraph  1430,  in  which 
latter  case  they  would  fall  under  the  basket  provision  for  wool 
manufactures  which  the  witness  has  recommended  shall  be  inserted 
in  paragraph  1109.) 

Hearings :  Pages  3607-3608. 

Witness:  Mr.  Samuel  S.  Dale,  representing  the  Carded  Woolen 
Manufacturers'  Association! 

Rates  suggested. — (See  par.  1108.) 

PARAGRAPH  1111. — PILE  FABRICS  OF  WOOL. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OF  HIGHER  DUTIES: 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manu- 
facturers, Philadelphia,  Pa. 

Mr.  William  L.  Wemple,  representing  the  Stroock  Plush  Co.,  and  other  pile 
fabric  manufacturers,  Newburgh,  N.  Y. 

Hearings :  Page  3533. 

Witness:  Mr.  John  P.  Wood,  representing  the  National  Associa- 
tion of  Wool  Manufacturers. 

Rates  suggested. — Substitute  paragraph  as  follows: 

Pile  fabrics,  cut  or  uncut,  whether  or  not  the  pile  covers  the  whole  surface, 
made  of  wool  or  of  which  wool  is  a  component  material,  whether  or  not 
constituting  chief  value,  and  manufactures  in  any  form,  made  or  cut  from  such 
pile  fabrics,  if  valued  at  not  more  than  $2.50  per  pound,  1.3  times  the  rate  of 
duty  on  1  pound  of  scoured  wool  of  the  first  class  and  30  per  cent  ad  valorem ; 
valued  at  more  than  $2.50  per  pound,  1.5  times  the  rate  of  duty  on  1  pound  of 
scoured  wool  of  the  first  class  and  33  per  cent  ad  valorem. 

Hearings :  Pages  3417-3418. 

Witness :  Mr.  William  L.  Wemple,  representing  the  Stroock  Plush 
Co.  (Xewburgh,  N.  Y.)  and  other  pile  fabric  manufacturers. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  397 

Rates  suggested, — Substitute  paragraph  as  follows : 

Pile  fabrics,  cut  or  uncut,  whether  or  not  the  pile  covers  the  whole  surface, 
and  of  which  the  pile  is  composed  either  wholly  or  in  part  of  wool,  and  manu- 
factures in  any  form  made  or  cut  from  such  fabric.  36  cents  per  pound  and  33J 
per  cent  ad  valorem ;  if  the  pile  is  composed  wholly  or  in  part  of  animal  fibers 
other  than  wool  as  defined  in  this  schedule,  40  per  cent  ad  valorem. 

NOTE. — The  witness  seems  to  include  in  "  pile  fabrics  "  goods  having  a  nap 
raised  by  teasling  or  gigging. 

PARAGRAPH  1112. — WOOL  BLANKETS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manu- 
facturers. 

Hearings :  Pages  3533-3534. 

Rates  suggested. — Substitute  paragraph  as  follows : 

On  blankets  composed  wholly  or  in  part  of  wool,  not  exceeding  3  yards  in 
length,  valued  at  not  more  than  75  cents  per  pound,  1  time  the  rate  of  duty  on  1 
pound  of  scoured  wool  of  the  first  class  and  20  per  cent  ad  valorem ;  valued  at 
more  than  75  cents  and  not  more,  than  $1.50  per  pound,  1.1  times  the  rate  of 
duty  on  1  pound  of  scoured  wool  of  the  first  class,  and  23  per  cent  ad  valorem ; 
valued  at  more  than  $1.50  per  pound,  1.3  times  the  rate  of  duty  on  1  pound  of 
scoured  wool  of  the  first  class,  and  27  per  cent  ad  valorem:  Provided,  That 
traveling  and  automobile  rugs  and  robes  shall  be  subject  to  the  same  rate  of 
duty  as  cloths  weighing  more  than  4  ounces  to  the  square  vard  under  paragraph 
1109. 

Remarks. — The  provision  for  wool  blankets  contained  in  paragraph 
1112,  H.  R.  7456,  leaves  in  doubt  the  classification  of  blanketing 
exceeding  3  yards  in  length  and  is  so  restrictive  as  to  color  and 
finish  that  very  few  of  the  blankets  of  commerce  would  fall  within 
the  provision.  These  restrictive  provisions  were  probably  designed 
indirectly  to  exclude  from  the  blanket  paragraph  such  articles  as 
traveling  rugs  and  automobile  robes,  concerning  the  classification 
of  which,  under  the  present  law,  there  has  been  considerable  litigation. 
It  is  true,  as  the  customs  authorities  contend,  that  traveling  and 
automobile  rugs  should  be  classed  as  cloths,  but  that  can  be  more 
simply  accomplished  by  their  specific  enumeration  in  the  cloth 
paragraph. 

PARAGRAPH  1113.— FELTS,  XOT  WOVEN. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FA  YOKING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manu- 
facturers. 

Hearings :  Page  3534. 

Rates  suggested. — Substitute  paragraph  as  follows: 

Felts,  not  woven,  wholly  or  in  part  of  wool,  valued  at  not  more  than  75 
cents  per  pound,  1  time  the  rate  of  duty  on  a  pound  of  scoured  wool  of  the  first 
class  and  20  per  cent  ad  valorem ;  valued  at  more  than  75  cents  and  not  more 
than  $1.50  per  pound.  1.2  times  the  rate  of  duty  on  1  pound  of  scoured  wool  of 
the  first  class  and  23  per  cent  ad  valorem;  valued  at  more  than  $1.50  per 
pound,  1.3  times  the  rate  of  duty  on  1  pound  of  scoured  wool  of  the  first  class 
and  27  per  cent  ad  valorem. 


398  DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456. 

PARAGRAPH  1115. — WOOL  KXIT  GOODS.     (Kxix  OUTERWEAR.) 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  J.  Phoenix,  representing  the  National  Knitted  Outerwear  Associa- 
tion. 

Hearings :  Pages  3736-3749. 

Costs  and  selling  prices. — Wages  average  about  40  cents  per  hour 
in  the  domestic  knit  outerwear  industry;  in  Germany,  Austria,  and 
Czechoslovakia,  not  over  4  cents  per  hour  (pp.  3736  and  3737.  For 
table  comparing  domestic  with  German  and  Czechoslovakian  wages. 
see  p.  3749).  In  1913,  when  the  domestic  industry  was  paying 
skilled  male  operators  $18  to  $24  per  week,  German  labor  was  receiv- 
ing from  one-third  to  one-half  these  rates.  German  wages  per  week 
were :  finishers  and  winders,  $2  to  $4 ;  apprentices,  from  nothing  to 
$2 ;  knitted  helper,  male.  $3  to  $5  per  week ;  the  experienced  knitter, 
male,  $6  to  $10  (p.  3741). 

Dyed  yarn,  which  is  the  knit  outerwear  manufacturer's  raw  mate- 
rial, was  recently  quoted  in  Germany  at  about  55  cents  per  pound ;  in 
the  United  States  it  costs  more  than  twice  that,  enabling  the  German 
manufacturer  to  start  with  a  great  advantage  (p.  3740).  Another 
difficulty  of  the  manufacturer  results  from  the  rapid  changes  of 
style  in  this  industry,  and  the  limitations  as  to  types  and  sizes  of 
goods  which  can  be  produced  by  a  single  knitting' machine.  Manu- 
facture and  sale  are  in  small  units.  A  large  amount  of  labor  is  in- 
volved in  the  mere  handling  of  orders  (pp.  3740-3741  and  3743). 

Size  of  industry. — There  are  about  a  thousand  manufacturers  in 
the  domestic  industry,  employing  last  year  about  57,000  persons; 
they  have  developed  in  20  years  a  business  having  a  volume  of  about 
$280,000,000.  The  National  Knitted  Outerwear  Association  com- 
prises perhaps  400  of  the  1,000  manufacturers  in  the  industry.  In 
Milwaukee,  there  are  perhaps  8.000  or  10,000  persons  in  the  knit- 
goods  industry ;  in  the  State  of  Wisconsin,  as  many  more. 

In  response  to  an  inquiry  as  to  whether  knit  gloves  come  from 
countries  other  than  those  mentioned  above,  the  witness  stated  that 
they  come  also  from  Great  Britain,  but  was  unable  to  state  in  what 
proportion  as  compared  with  Germany  or  to  state  whether  the  Brit- 
ish glove  sells  in  the  United  States  for  more  than  the  German.  He 
stated,  however,  that  imports  of  knitted  outerwear  from  Great  Brit- 
ain are  largely  of  the  finer  classes  and  types,  appealing  especially  to 
the  demands  of  style  and.  therefore,  that  they  ought  to  pay  more 
duty  than  the  German :  also  that  the  domestic  industry  produces  the 
types  of  outerwear  made  in  Great  Britain  as  well  as  those  made  in 
Germany  (pp.  3745-3746). 

Rates  suggested. — The  following  substitute  for  subdivision  4  of 
paragraph  1115,  H.  R.  7456,  is  proposed,  showing  in  italics  th& 
changes  in  wording  and  in  brackets  the  values  and  rates  in  the  pend- 
ing bill : 

Outerwear  and  all  other  articles,  including  neckwear,  Itathimj  units,  gloves, 
and  mittens,  knit  or  crocheted,  wholly  or  in  part,  finished  or  unfinished,  made 
of  wool  or  of  which  wool  is  a  component  part,  whether  or  not  constituting' 
ch'ef  value,  valued  at  not  more  than  [$2.50]  $1.50  per  pound,  30  cents  per  pound 
and,  in  addition  thereto,  [28]  35  per  cent  ad  valorem;  valued  at  more  than 
$1.50  per  pound  and  not  more  than  $3  per  pound,  36  cents  per  pound  and,  in 


DIGEST   OF   TARIFF    HEARINGS,    H.   R.    745G.  399 

addition  thereto.  >,2  per  centum  ad  valorem;  valued  at  more  than  [2.50]  $3 
per  pound,  36  cents  per  pound  and,  in  addition  thereto,  [33 J]  50  per  centum 
ad  valorem. 

The  words  "gloves  and  mittens''  in  subdivision  2  of  paragraph 
1115  should  be  eliminated,  for  these  items  should  not  properly  be 
classed  with  hosiery,  covered  in  the  same  subdivision. 

The  changes  are  recommended  by  the  National  Knitted  Outerwear 
Association,  in  language,  to  make"  the  paragraph  more  definite  and 
certain ;  in  rates,  based  upon  American  valuation,  to  afford  adequate 
protection  to  the  industry. 

Remarks. — The  National  Knitted  Outerwear  Association  favors 
the  adoption  of  American  valuation  as  provided  in  paragraph  402, 
H.  R.  7456,  believing  that  even  high  rates  of  duty  will  not  protect 
this  industry  unless  American  valuation  is  adopted  (pp.  3739-3740). 

PARAGRAPH  1116. — WOOL  WEARING  APPAREL. 

WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  E.  H.  Snyder,  representing  the  National  Association  of  Merchant  Tailors 
of  America,  Washington,  D.  C. 

OTHER : 

Mr.  William  Goldman,  representing  Cohen,  Goldman  &  Co.   (clothing  man- 
ufacturers), New  York  City. 

Hearings :  Pages  3733-3734.     . 

Witness :  Mr.  E.  H.  Snyder,  representing  the  National  Association 
of  Merchant  Tailors  of  America. 

Rates  suggested. — The  ad  valorem  rate  in  paragraph  1116,  on 
clothing  and  articles  of  wearing  apparel  valued  at  more  than  $5  per 
pound,  should  be  changed  from  30  per  cent,  as  now  provided,  to  50 
per  cent. 

In  the  pending  bill,  the  rates  on  wool  clothing  are  inconsistent  with 
the  rates  on  the  cloth.  (Par.  1109.)  The  additional  duty  on  cloth- 
ing, in  relation  to  the  cloths,  is  only  2^  per  cent,  a  mar-gin  far  too 
narrow  when  it  is  considered  that  the  cost  of  labor  in  the  clothing 
industry  is  three  times  the  cost  in  England. 

Remarks. — The  association  is  opposed  to  American  valuation  (p. 
3429).  It  is  also  opposed  to  the  raising  of  the  maximum  limitation 
to  $250,  as  regards  the  amount  of  wearing  apparel  entitled  to  free 
entry,  as  covered  in  the  last  proviso  in  paragraph  1678,  free  list. 

Hearings :  Pages  3708-3719. 

Witness :  Mr.  William  Goldman,  representing  Cohen,  Goldman  & 
Co.  (clothing .manufacturers).  New  York  City. 

Rates  suggested. — Witness,  testifying  in  favor  of  a  lower  duty  on 
raw  wool  in  the  pending  bill  (see  digest  of  his  testimony,  herein, 
under  pars.  1101  and  1102),  stated  (p.  3710)  that  the  tariff  on  cloth- 
ing is  not  of  vital  concern  to  the  clothing  manufacturers,  since  cloth- 
ing does  not  enter  largely  into  international  trade ;  is  produced  here 
under  keenly  competitive  conditions;  and  is  sold,  in  the  main,  far 
below  the  tariff  wall. 


400  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPH  1117. — WOOL  FLOOR  COVERINGS  (CHENILLE  AXMINSTERS). 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  Henry  I.  Magee,  representing  American  carpet  manufacturers,  Phila- 
delphia. 

Hearings :  Pages  3753-3761. 

Costs  and  selling  prices. — '*  *  *  *  The  proportion  of  labor  to 
the  whole  cost  is  greater  in  a  chenille  carpet  or  rug  than  in  any  other 
wool  floor  covering  in  popular  use,  and  runs  as  high  as  43  per  cent  of 
the  total  cost,  including  overhead." 

The  average  chenille  Axminster  sells  at  retail  at  about  $110. 

Size  of  industry. — This  type  of  floor  covering  has  been  manufac- 
tured in  Great  Britain  for  more  than  60  years.  It  is  a  comparatively 
new  industry  in  this  country.  About  25  years  ago  McLeary,  Wallin 
&  Crouse,  of  Amsterdam,  N.  Y.,  undertook  the  manufacture  of 
chenille  goods,  but  were  unable  to  compete  with  the  foreign  industry. 
Encouraged  by  a  more  favorable  tariff,  the  manufacture  was  again 
undertaken  in  1910.  During  the  war,  owing  to  the  removal  of  for- 
eign competition  and  the  increased  domestic  demand,  the  industry 
grew  rapidly.  Most  of  the  overseers,  etc.,  are  from  the  British  Isles. 

There  are  now  four  concerns  manufacturing  chenille  carpets  and 
rugs,  and  in  one  (the  largest)  more  than  500  operatives  are  em- 
ployed in  this  particular  department.  One  company  produced,  in 
1914,  127,000  square  yards  and,  in  1920,  344,000  square  yards. 

Rates  suggested. — On  chenille  Axminster  carpets  and  rugs,  the  duty 
to  be  increased  (from  5  cents  per  square  foot  plus  30  per  cent  in  H.  if. 
7456)  to  10  cents  per  square  foot  plus  50  per  cent  ad  valorem. 

PARAGRAPH  1118. — WOOL  FLOOR  COVERINGS. 
Wilton  Carpets  and  Rugs. 

WITNESS,    AND   INTEREST   REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Henry  I.  Magee,  representing  American  carpet  manufacturers,  Phila- 
delphia, Pa. 

Hearings:  Pages  3753-3761. 

Costs  and  selling  prices. — Relative  to  that  portion  of  paragraph 
1118  covering  Wilton  carpets  and  rugs,  the  following  comparison 
was  made  between  British  and  domestic  Wiltons : 

The  foreign  price  of  standard  English  worsted  rugs,  such  as  the 
Templeton  Super,  is  £13  9s.  4d.  With  exchange  at  $4.  this  would  be 
$53.87.  Add  $19A2  duty  at  25  per  cent  on  the  American  valuation 
of  $76.50  for  comparable  rugs,  such  as  Hardwick  &  Magee's  French 
Wiltons  and  WhittalFs  Anglo-Persian.  To  this  add  $1.50  to  cover , 
freight,  etc..  and  3  cents  per  square  fopt,  or  $3.24  (presumably  for 
importers  overhead  and  profit),  and  a  total  of  $77.73  is  reached  as 
the  wholesale  cost  of  a  Templeton  Super  in  this  country.  But  with 
a  duty  of  28  per  cent  on  carpet  wool  the  increased  cost  of  worsted 
yarns  for  domestic  rugs  will  be  10  cents  per  pound,  or  25  cents  per 
running  yard,  equal  to  $4  per  rug.  so  that  the  price  given  above  for 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   1456.  401 

the  domestic  rug,  namely,  $76.50.  would  be  increased  to  $80.50.     The 
foreign  rug  would,  therefore,  undersell  the  domestic  by  almost  $3. 

Rates  suggested. — On  Wilton  carpets  and  rugs  tlie  duty  to  be 
increased  (from  3  cents  per  square  foot,  plus  25  per  cent  ad  valorem 
in  H.  R.  7456)  to  3  cents  per  square  foot,  plus  30  per  cent  ad  valorem. 

Fiber  and  Wool-Fiber  Floor  Coverings. 
WITNESS,  AND  INTEREST  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  Frank  E.  Carstarphen,  representing  manufacturers  of  fiber  and  wool- 
fiber  rugs,  New  York  City. 

Hearings :  Pages  3761-3766. 

(NOTE. — The  witness's  testimony  relates  only  to  fiber  and  wool-fiber  rugs, 
which,  so  far  as  paragraph  1118  is  involved,  would  fall  within  either  subsec- 
tion 2  or  subsection  3  thereof.  It  does  not  relate  to  paragraph  1118  as  a  whole. ) 

Size  of  industry. — The  six  companies  belonging  to  the  Grass  & 
Fiber  Rug  Manufacturers'  Association,  represented  by  witness,  pro- 
duce perhaps  90  per  cent  of  the  fiber  and  wool-fiber  rugs  made  in  the 
United  States.  They  employ  about  2.000  persons,  pay  annually 
about  $2,000.000  in  wages,  and  have  a  total  capitalization  of  $5.260,000 
(p.  3766).  There  are  no  imports  of  fiber  and  wool-fiber  rugs  as  such 
Competition  comes  from  the  imported  rice-straw  rugs,  which  com- 
pete directly  with  the  domestic  grass  rug,  and,  because  used  for  the 
same  purposes  indirectly  with  the  fiber  and  wool-fiber  rug  (pp. 
3764-3765). 

Rates  suggested. — As  regards  classification  in  the  act  of  1913  of 
fiber  and  wool-fiber  floor  coverings,  the  witness  quotes  from  pages  108 
and  109,  Tariff  Information  Survey  J-3,  entitled  "  Floor  coverings 
other  than  wool,"  as  follows : 

There  being  little  or  no  importation  of  fiber  or  wool-fiber  floor  coverings,  the 
question  of  classification  of  these  goods  is,  as  matters  now  stand,  largely  an 
academic  question.  Development  of  foreign  competition  is  not  inconceivable, 
however,  and  it  may  be  well  to  indicate  under  which  provisions  of  the  present 
tariff  such  goods  would  in  all  probability  fall,  if  imported,  and  the  changes  in 
these  provisions  which  have  been  recommended  by  the  Tariff  Commission. 

From  the  standpoint  of  the  present  tariff  law  fiber  and  wool-fiber  floor  cover- 
ings as  now  produced  in  the  United  States  fall  into  two  main  classes:  (1)  All- 
fiber  floor  coverings,  made  on  plain  looms,  and  (2)  ingrain  floor  coverings, 
whether  two-ply  or  three-ply  and  whether  in  part  of  wool  or  wholly  of  other 
materials.  Since  there  is  no  specific  provision  for  floor  coverings  of  the  first 
class,  such  goods  would  presumably  fall  under  the  general  provisions  of  either 
paragraph  323  or  paragraph  332,  depending  on  the  grade  of  paper  used.  These 
provisions  read  as  follows: 

"  PAR.  323.  *  *  *  tissue  paper  *  *  *  and  articles  manufactured  from 
any  of  the  foregoing  papers  or  of  which  such  paper  is  the  component  material 
of  chief  value,  30  per  cent  ad  valorem. 

"  PAR.  332.  *  *  *  and  all  papers  and  manufactures  of  paper  or  of  which 
paper  is  the  component  material  of  chief  value,  not  specially  provided  for  in 
this  section,  25  per  cent  ad  valorem." 

Ingrain  carpets,  whether  two-ply  or  three-ply  and  irrespective  of  component 
materials,  are  at  present  provided  for  as  follows : 

"  PAR.  298.  Treble  ingrain,  three-ply,  and  all-chain  Venetian  carpets,  20  per 
cent  ad  valorem. 

"  PAR.  299.  Wool  Dutch  and  two-ply  ingrain  carpets,  20  per  cent  ad  valorem." 

Ingrain  rugs  or  art  squares  are  covered  by  the  following  provision,  except 
that  it  is  to  be  noted  that  such  articles  must  be  composed  in  part  of  wool : 


402  DIGEST   OF   TARIFF    HEARINGS,    H.   R.   7456. 

"  PAR.  303.  Mats,  rugs  for  floors,  screens  covers,  hassocks,  bed  sides,  art 
squares,  and  other  portions  of  carpets  or  carpeting,  composed  wholly  or  in  part 
of  wool  and  not  specially  provided  for  in  this  section,  shall  be  subjected  to  the 
rate  of  duty  herein  imposed  on  carpets  or  carpeting  of  like  character  or  de- 
scription." 

Unless  ingrain  rugs  or  art  squares  containing  no  wool  were  construed  to 
be  covered  by  the  foregoing  provisions  because  of  similitude,  they  would  be 
classified  elsewliere  according  to  the  leading  material  of  which  composed. 

It  is  assumed  by  the  witness  that  wool-fiber  rugs  will  fall  under 
paragraph  1118  in  the  pending  bill  (in  subsec.  2,  if  classified  as  in- 
grain; in  subsec.  3,  if  not  so  classified)  ;  but  as  regards  the  paper  (or 
"fiber")  rugs  containing  no  wool,  the  witness  believes  there  is  un- 
certainty as  to  whether  they  would  be  classed  under  either  paragraph 
1118  or  1020  (this  latter  covering  common  straw  mats  and  mattings 
and  all  other  floor  coverings  not  specially  provided  for).  In  case 
such  uncertainty  is  deemed  to  exist,  witness  recommends  that  a 
special  provision  be  added  to  paragraph  1118,  as  follows: 

Floor  coverings  of  which  the  chief  component  part  either  in  weight  or  value 
is  paper,  2  cents  per  square  foot  and  25  per  cent  ad  valorem. 

PARAGRAPH  1120. — MANUFACTURES  OF  WOOL,  N.  S.  P.  F. 
WITNESS,  AND  INTEREST  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  John  P.  Wood,  representing  the  National  Association  of  Wool  Manufac- 
turers. 

Hearings :  Pages  3532  and  3534. 

Remarks. — This  paragraph  was  designed  as  a  basket  provision  for 
the  wool  schedule,  but  includes  no  wool  compensatory  duty,  and  its 
ad  valorem  rate  is  not  in  accordance  with  the  requirements  for  a 
catch-all  paragraph.  For  these  reasons  the  witness  recommends  that 
it  be  incorporated  as  a  basket  provision  in  the  cloth  paragraph 
(1109),  where  it  has  heretofore  habitually  been. 

SCHEDULE    12. — SILK    AND    SILK    GOODS. 

PARAGRAPH  1201. — SILK. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  M.  C.  Migel,  representing  American  Silk  Spinning  Co.,  Providence,  R.  I., 

and  five  others. 
Mr.  O.  D.  Frost,  representing  Champlain  Silk  Mills,  225  Madison  Avenue, 

New  York  City. 
Mr.  Frederick  F.  Kip,  president,  representing  Salts-Griswold  Mills,  Darby, 

Pa. 

Hearings :  Pages  3795-3803. 

Witness:  Mr.  M.  C.  Migel,  representing  American  Silk  Spin- 
ning Co. 

Costs  and  selling  prices. — American  dressers  are  now  paid  from 
$40  to  $45  per  week,  an  increase  over  prewar  wages  of  about  30  to  40 
per  cent.  In  France  similar  labor  is  paid  20  francs  per  day,  which, 
figuring  1\  to  8  cents  to  the  franc,  would  make  the  rate  about  $9.60 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  403 

per  week.  In  Italy  this  labor  is  paid  30  lire  per  day,  which  would 
amount  to  about  $7.80  per  week. 

Comparability. — A  large  part  of  the  import  of  peignees,  the  only 
important  import  item  covered  by  this  paragraph,  is  brought  in  by  a 
recently  established  spun  silk  mill  using  foreign-made  peignees. 
This  mill  is  owned  jointly  by  three  members  of  the  European  spun- 
silk  combination,  which  controls  90  per  cent  of  the  European  peignee 
production.  As  the  cost  of  making  peignee  is  60  per  cent  of  the  total 
cost  of  making  spun  silk,  this  concern  has  an  advantage  over  manu- 
facturers using  domestic  peignee.  Japanese  peignee  has  also  been 
imported  by  domestic  spinners,  but  as  yet  it  has  not  been  found  very 
reliable. 

Rates  suggested. — Fifty-five  to  60  cents  per  pound  specific  with  an 
an  ad  valorem  minimum  provision  of  at  least  30  per  cent  on  Ameri- 
can valuation. 

Hearings :  Pages  3791-3795. 

Witness :  Mr.  O.  D.  Frost. 

Costs  and  selling  prices. — At  present  the  average  cost  of  making 
peignees  in  the  United  States  is  about  $2.50  per  pound.  Of  this 
about  87^  cents,  or  35  per  cent,  represents  labor  costs  and  about 
$1.62|,  or  65  per  cent,  material  cost.  In  Japan  the  cost  of  labor, 
allowing  as  much  as  50  per  cent  lower  efficiency  in  Japan  than  here, 
is  about  20  per  cent  of  domestic.  For  instance,  the  Champlain  Silk 
Mills  employ  girls  in  their  Yokohama  packing  plant  at  wages  of  65 
sen,  or  32^  cents,  per  day — about  10  per  cent  of  the  wages  of  similar 
quality  labor  in  this  country. 

Dressers  in  the  United  States  receive  $6.18  to  $8.25  per  day;  in 
France,  from  20  to  25  francs  per  day,  which  at  the  present  rate  of 
exchange  would  be  $1.60  to  $1.90. 

Hearings :  Pages  3803-3813. 

Witness:  Mr.  Frederick  F.  Kip,  representing  Salts-Griswold  Mills, 
and  others. 

Rates  suggested. — The  duty  provided  by  this  paragraph  should  be 
55  cents  per  pound  plus  a  minimum  ad  valorem  provision  of  30  per 
cent  on  American  valuation. 

It  is  imperative  that  an  adequate  specific  duty  be  provided.  In 
making  peignee  waste  silk  is  put  on  a  large  circular  frame,  which, 
as  it  revolves,  allows  the  material  to  come  in  contact  with  a  smaller 
and  faster  revolving  frame,  which  combs  out  the  short  fibers  and 
parallels  the  long  ones.  This  process  is  known  as  dressing.  In 
Europe  six  or  eight  drafts  or  combings  are  made.  Since  a  combina- 
tion of  mills  controls  95  per  cent  of  European  peignee  production, 
one  mill  can  use,  itself,  the  first  two  drafts  and  sell  the  remainder  as 
a  by-product  at  about  one-fourth  its  actual  value  to  a  spinning  mill 
affiliated  with  the  combination.  Members  of  the  trust  can,  therefore, 
export  to  the  United  States  short  drafts  at  below  cost  prices,  which 
they  can  prove  to  be  market  price  for  sales  between  mills  in  Europe. 
Without  the  specific  rate  it  will  thus  be  possible  for  them  to  dominate 
the  domestic  situation  and  put  American  producers  out  of  business 
whenever  they  choose. 


404  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPH  1202. — SPUN  SILK. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Horace  B.  Cheney,  representing  the  Silk  Association  of  America,  354 
Fourth  Avenue,  New  York  City. 

Mr.  M.  C.  Migel.  representing  the  American  Silk  Spinning  Co.,  Provi- 
dence, R.  I. 

Mr.  C.  D.  Frost,  representing  the  Champlain  Silk  Mills,  225  Madison  Ave- 
nue, New  York  City. 

Mr.  Frederick  F.  Kip,  representing  the  Salts-Griswold  Mills,  Darby,  Pa. 

Hearings :  Pages  3771-3790 ;  3852-3854. 

Witness :  Mr.  Horace  B.  Cheney,  representing  the  Silk  Association 
of  America. 

Costs  and  selling  prices. — The  average  earnings  of  spinners  at  the 
present  time  in  the  Cheney  Bros,  plant  are  53^  cents  per  hour.  For 
the  whole  country  in  1920  the  highest  wage  for  spinners  was  $5.70 
per  day ;  the  lowest,  $2.50  per  day.  In  Switzerland  the  average  was 
10.5  francs  per  day,  which  at  normal  exchange  would  be  $2.10;  at 
current  exchange,  $1.65. 

Hearings :  Pages  3795-3803. 

Witness:  Mr.  M.  C.  Migel,  representing  the  American  Silk  Spin- 
ning Co. 

Costs  and  selling  prices. — To-day  domestic  prices  of  good  qualities 
of  yarn  vary  from  $4  to  $6  a  pound.  European  prices  are  fixed  by  a 
combination  composed  of  three  large  concerns  which  together  own 
30  or  more  mills  in  Europe.  While  they  have  separate  agencies  here, 
their  prices  are  uniform.  In  April,  1921,  they  took  advantage  of 
their  position  to  lower  prices  to  a  point  below  the  cost  of  production 
and  in  that  way  to  dispose  of  large  quantities  of  yarn  in  this  country. ' 
Domestic  prices  were  thus  forced  down  $1  per  pound  and  domestic 
mills  had  to  close.  (For  data  on  peignee  costs,  stated  to  make  60 
per  cent  of  total  spun  silk  labor  costs,  see  testimony  under  par.  1201.) 

Size  of  industry. — American  manufacturers  produce  annually  spun 
silk  valued  at  approximately  $30,000,000.  Imports  in  1920  amounted 
to  approximately  $15,000.000,  or  50  per  cent  of  the  domestic  manu- 
facture. Of  the  imports,  90  per  cent  was  obtained  from  the  spun- 
silk  trust  referred  to  above. 

Rates  suggested. — A  minimum  ad  valorem  duty  of  32.5  per  cent 
on  American  valuation,  with  the  specific  rates  of  H.  R.  7456  retained. 

Remarks. — The  combination  above  referred  to  has  recently  estab- 
lished in  this  country  a  mill  of  its  own  and  is  using  imported  peignee 
in  making  its  yarns.  (See  testimony  under  par.  1201.) 

Hearings :  Pages  3791-3795. 

Witness :  Mr.  O.  D.  Frost. 

Costs  and  selling  prices. — (See  testimony  under  par.  1201.) 

Size  of  industry. —  (United  States  and  Japan.)  In  1920  Japan 
produced  6,697,000  pounds  of  spun  silk,  in  addition  to  2,431,000 
pounds  of  noil  yarns — yarns  made  from  the  by-products  of  the  spin- 
ning industry.  The  increase  in  production  of  spun  silk  in  1920  over 
1919  was  67  per  cent.  During  the  war  the  Japanese  dressing  plants 
were  developed,  followed,  since  the  war,  by  spinning  plants  whose 
present  capacity  is  practically  equal  to  that  of  this  country,  or  from 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  405 

7  to  7-|  million  pounds  per  year.  These  plants  are  therefore*  large 
potential  competitors.  The  bulk  of  imports  now,  however,  come  from 
Europe  and  are  sent  here  by  the  large  silk-spinning  combination. 
The  total  imports  in  1920  were  3,400,000  pounds  in  round  figures. 

Rates  suggested. — The  retention  of  the  specific  rates  of  H.  R.  7456, 
with  an  increase  in  the  catchall  clause  to  32^  per  cent  ad  valorem  on 
American  valuation. 

Remarks. — While  not  generally  considered  in  this  country  a  key 
industry,  about  80  per  cent  of  domestic  spun-silk  production  was 
used  during  the  war  in  the  manufacture  of  cloth  for  cartridge  bags 
to  hold  the  powder  charge  of  big  guns.  It  is  necessary,  therefore, 
to  maintain  the  industry  for  war  purposes. 

Hearings :  Pages  3803-3813. 

Witness:  Mr.  Frederick  F..Kip,  representing  the  Salts-Griswold 
Mills. 

Rates  suggested. — On  undyed  single  yarns  in  skeins,  cops,  or 
warps  there  should  be  provided  a  minimum  ad  valorem  catchall 
clause  by  inserting  in  House  bill,  page  126,  line  23,  after  the  word 
"  pound,"  the  words  "  Provided,  That  none  of  the  foregoing  shall 
pay  a  less  rate  of  duty  than  31^  per  cent,  American  valuation  " ;  on 
other  yarns  the  minimum  provision  should  be  35  per  cent,  American 
valuation,  instead  of  the  26  per  cent  in  the  House  bill  (p.  127,  line  8), 
a  rate  which,  a?  the  bill  now  stands,  applies  to  single  and  ply  yarns 
in  all  conditions. 

PARAGRAPH  1203. — THROWN  SILK. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PEOPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frederick  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co., 
Bridgeport,  Conn. 

Hearings :  Pages  3803-3813. 

Rates  suggested. — The  ad  valorem  minimum  rate  provided  in  this 
paragraph,  House  bill,  page  127,  line  23,  should  be  increased  from 
"12£  to  15  per  cent  on  American  valuation. 

PARAGRAPH  1204. — SILK  SEWING  THREAD. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frederick  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co., 

Bridgeport,  Conn. 
Hearings :  Pages  3803-3813. 

Rates  suggested. — The  ad  valorem  minimum  upon  sewing  silk  in 
the  gum.  House  bill,  page  128,  line  4,  should  be  increased  from  20 
to  25  per  cent  on  American  valuation;  and  upon  sewing  silk  un- 
gummed,  House  bill,  page  128,  line  8,  from  26  to  30  per  cent  on 
American  valuation. 

77134—22 27 


406  DIGEST   OF  TARIFF   HEARINGS,  H.  R,   7456. 

'PARAGRAPH  1205. — SILK  FABRICS  WOVEN  IN  THE  PIECE. 
WITNESSES,  AND  INTERESTS  EEPEESENTED. 

FA  YOKING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Horace  B.  Cheney,  representing  the  Silk  Association  of  America,  354 

Fourth  Avenue,  New  York  City. 

Mr.  Ernest  J.  Ruegg,  representing  Schwa rzenbach,  Huber  &  Co.,  470  Fourth 
Avenue,  New  York  City. 

FAVORING  LOWER  DUTIES  : 

Mr.  Samuel  Kridel,  representing  manufacturers  of  silk,  as  well  as  traders, 

New  York  City  (also  requesting  reclassification). 
Mr.  Alfred  Kohlberg,  representing  himself,  as  an  importer,  Bayside,  Long 

Island,  N.  Y.  (also  requesting  reclassification). 

Mr.  Armin  C.  Stapfer,  New  York  City  (also  requesting  reclassification). 
Mr.  H.  E.  Miles,  chairman  of  the  Fair  Tariff  League. 

Hearings:  Pages  3771-3790;  3852-3854. 

Witness :  Mr.  Horace  B.  Cheney. 

Costs  and  selling  prices. — Labor  costs  in  Cheney  Bros.'  plant  in 
South  Manchester,  Conn.,  are  now  160  per  cent  higher  than  in  1914. 
Before  the  war  the  average  wage  was  20.9  cents  per  hour;  early  in 
1920  it  was  60  cents ;  it  is  now  51  cents.  Selling  prices,  on  the  other 
hand,  have  been  reduced  by  one-half  since  the  spring  of  1920. 

Japanese  prices  on  6^  momme  habutai — habutai  is  the  largest  im- 
ported fabric — were  $1.15  per  yard  in  January,  1920;  45.7  cents  in 
July;  before  the  end  of  the  year  it  fell  to  36  cents;  and  since  then 
have  risen  to  something  over  50  cents. 

At  the  request  of  Senator  Calder,  the  witness  inserted  in  his  re- 
marks the  tables  on  wages  in  the  United  States  and  foreign  coun- 
tries presented  by  him  at  the  Ways  and  Means  Committee  hearings. 
For  the  full  tables  see  page  3788.  'Comparable  data  contained  therein 
may  be  summarized  as  follows : 

Daily  wages. 
[Dollars.] 


United  States. 

Japan. 

Swit- 
zerland, 
aver- 
age for 
1920.1 

Italy, 

aver- 
age for 
1920.1 

1913 

1920 

1913 

1920 

High. 

Low. 

High. 

Low. 

High. 

Low. 

High. 

Low. 

Weavers  

3.00 
1.40 
4.50 

1.00 
.50 
2.00 

8.25 
5.10 
7.90 

4.50 
2.75 
6.25 

0.20 
.10 
.40 

0.10 
.08 
.20 

1.25 
.70 
2.00 

0.60 
.50 
1.00 

1.98 
1.57 
3.79 

0.62 
.39 
.94 

Winders  

Machinists    

i  At  current  rates  of  exchange. 

Size  of  industry. — Census  reports  for  1919  show  a  total  of  127,000 
wage  earners  in  the  whole  silk  manufacturing  industry.  Reports 
obtained  by  the  Silk  Association  of  America  indicate  that  of  this 
number  there  were  unemployed  in  all  branches  of  silk  manufacture 
54,000  on  January  1,  1921;  28,000  on  September  1,  1921;  and  31,000 
on  September  26,  1921.  The  silk- weaving  section  of  this  industry 
is,  however,  operating  at  not  more  than  50  per  cent  capacity.  In 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  407 

the  spring  of  1921,  55  per  cent  of  the  looms  were  in  operation,  and 
in  Xovember,  1921,  approximately  the  same  percentage.  In  both 
periods,  however,  about  65  per  cent  of  the  active  looms  were  run- 
ning on  short  time. 

Comparability. — The  statements  made  to  the  committee  'to  the 
effect  that  goods  of  the  same  character  as  these  imported  from 
China  and  Japan  are  never  made  here  are  incorrect.  This  is  shown 
by  the  samples  submitted  of  domesticated  and  wild  silk  cloths,  of 
identical  construction,  produced  both  in  the  United  States  and  in 
the  Orient.  The  statement  that  silk  goods  with  lamme  or  tinsel 
filling  are  not  made  in  this  country  is  also  erroneous.  Despite 
being  at  a  disadvantage  because  of  the  low  duty  at  present  im- 
posed upon  this  class  of  goods,  many  domestic  mills  are  engaged 
in  their  manufacture.  The  duty  on  them  should,  however,  be  in- 
creased in  as  great  a  proportion  as  the  duties  in  the  silk  schedule 
are  increased. 

It  should  be  emphasized,  moreover,  that  goods  do  not  have  to  be 
of  identical  character  to  be  competitive;  any  cloth  is  competitive 
with  another  cloth  when  it  displaces  the  other  in  public  use.  Not 
only  has  the  increased  import,  under  the  Underwood  law.  of  habutais 
and  pongees  stopped  the  manufacture  of  those  cloths  in  the  United 
States  but  it  has  caused  loss  of  business  in  other  lines.  There  was, 
for  instance,  at  one  time  a  large  domestic  manufacture  of  florentine, 
a  fabric  made  with  reeled  silk  warp  and  spun  silk  filling.  It  was 
largely  driven  off  the  market  by  the  enlarged  use  of  Japanese 
habutai,  a  lighter  cloth  of  somewhat  different  appearance.  Habutais 
are  also  competitive  with  foulards,  even  though  foulards  are  dif- 
ferent in  construction.  The  difference  in  appearance  between  a 
foulard  and  a  habutai,  when  each  is  printed  and  made  up  into  a 
dress,  is  not  sufficiently  great  to  make  a  woman  care  very  much  if 
she  substitutes  one  for  the  other. 

Rates  suggested. — The  specific  duties  of  the  House  bill,  even 
though  too  low  to  be  applicable  under  present  prices,  should  be 
retained,  and  the  ad  valorem  minimum  provision  should  be  increased 
from  31  per  cent  to  38£  per  cent  on  American  valuation,  or  to  55 
per  cent  on  foreign  valuation. 

Prices  here  and  in  foreign  countries  have  doubled  since  1913,  and 
the  difference  between  them  has  therefore  also  doubled.  Hence,  in 
order  to  afford  the  same  protection  as  given  by  the  specific  rates 
of  the  Payne-Aldrich  law,  in  the  new  law  those  rates  would  have 
to  be  doubled.  The  House  committee,  however,  not  thinking  it  ex- 
pedient to  make  such  increase,  adopted  without  material  change 
the  Payne-Aldrich  rates,  which  would  not,  except  on  special  types 
of  goods,  be  operative  at  the  present  level  of  prices.  The  great  bulk 
of  imports  would  come  in  under  the  minimum  ad  valorem  pro- 
vision, placed  by  the  House  at  31  per  cent  on  American  valuation. 

Silk  manufacturers  are  very  reluctant  to  abandon  the  principle 
of  specific  rates,  since  such  rates  have  the  advantage  of  being  much 
more  reasonable  in  application,  easier  of  collection,  impossible  of 
evasion,  and  of  helping  to  equalize  the  exchange  rates  of  various 
countries.  If,  however,  it  is  not  feasible  to  raise  the  specific  rates 
to  such  figures  as  to  make  them  protective,  it  is  requested  that  those 
provided  by  the  House  bill  be  retained,  it  being  desirable  that  the 


408  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    745C. 

Government  obtain  reports  showing  imports  under  the  different 
specific  brackets.  In  this  way  it  will  be  possible  to  determine  a  rea- 
sonable basis  for  specific  schedules  and  to  provide  Congress  with  ade- 
quate data  for  the  future  revision  of  specific  rates. 

If  the  ad  valorem  minimum  catchall  has  to  be  relied  upon  because 
of  the  low  specific  rates,  then  it  should  be  taken  into  account  that 
there  is  a  certain  amount  of  undervaluation  and  that  not  all  of  the 
duty  on  an  ad  valorem  basis  can  be  collected.  It  should  be  remem- 
bered, also,  that  when  specific  rates  were  enacted  the  ad  valorem 
catchall  was  placed  at  a  lower  figure  than  the  ad  valorem  rates 
which  had  formerly  been  the  sole  duty.  It  was  intended  to  catch 
those  things  which  were  not  covered  on  the  specific  basis.  Under 
the  Payne- Aldrich  law,  the  ad  valorem  catchall  was  45  per  cent  and 
the  ad  valorem  equivalent  of  the  specific  rates  55  per  cent.  The 
strict  45  per  cent  duty  of  the  Underwood  law  thus  meant  a  con- 
siderable reduction  in  duties.  Under  present  circumstances,  with 
specific  rates  too  low  to  be  protective,  the  ad  valorem  catchall  should 
be  made  the  same  as  an  ad  valorem  equivalent  of  the  Payne- Aldrich 
55  per  cent  on  foreign  valuation  or  about  38  per  cent  in  terms  of 
American  valuation. 

The  request  of  Mr.  Kridel,  Mr.  Kohlberg,  and  others  that  woven 
goods  made  of  tussah,  or  wild  silk,  be  admitted  at  specific  rates  lower 
than  those  of  the  House  bill  and  less  than  those  upon  other  silk 
cloths  is  based  upon  questionable  data.  Prices  are  named  on  such 
goods  of  about  $2.50  per  pound,  despite  the  fact  that  8-cocoon 
tussah  of  standard  grade,  such  as  is  used  in  their  production,  is 
to-day  quoted  on  the  New  York  market  at  prices  ranging  from  $4.30 
to  $4.65  per  pound.  With  the  gum  removed,  the  raw  silk  content 
of  a  pound  of  pongee  would,  therefore,  be  worth  from  $5  to  $5.25 
per  pound,  and  a  pound  of  such  goods  could  not,  in  the  opinion  of 
the  witness,  be  legitimately  imported  to-day  at  a  lower  value  than 
$6.50  per  pound,  at  which  figure  the  duty  under  the  present  45  per 
cent  rate  would  be  much  higher  than  the  ad  valorem  equivalents 
of  the  specific  rates  applicable  to  them  under  H.  R.  7456. 

Separate  provision  for  pongees  by  designating  them  as  cloths  made 
of  tussah  or  wild  silk  is  impracticable.  There  are  many  varieties 
of  wild  silk,  some  of  them  of  the  same  color  as  some  varieties  of 
domesticated  silk,  and  it  would  be  extremely  difficult  for  the  best 
expert  to  differentiate  between  all  the  different  types  when  woven 
into  goods  and  colored.  There  is  no  one  who  could  do  so  with  cer- 
tainty, especially  as  there  are  goods  in  which  wild  silks  are  mixed 
with  domesticated  silks. 

As  to  Mr.  Kridel's  statement  that  the  provision  for  an  additional 
duty  on  cloths  containing  threads  or  yarns  of  over  30  turns  of  twist 
to  the  inch  is  impracticable  because  of  the  difficulty  of  determining 
the  amount  of  twist,  the  reply  is  that,  on  the  contrary,  by  the  use 
of  a  twisting  machine  the  number  of  twists  per  inch  can  be  very 
quickly  and  accurately  ascertained. 

Remarks:  Further  references  to  Japanese  conditions  include  the 
statement  that  the  average  annual  exports  of  habutai  from  Japan  to 
the  United  States  increased  from  9,428,503  square  yards  in  the  five 
years,  1910-1914,  to  24,614,546  square  yards  in  the  succeeding  five- 
year  period.  Japan  is  steadily  improving  her  methods  of  produc- 
tion and  substituting  power  looms  for  hand  looms,  as  is  evidenced 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  409 

by  the  following  table,  showing  the  total  imports  of  textile  machinery 
into  Japan  from  all  countries  : 

1915  ------------------------------------------------  $877.  344 

1916  ------------------------------------------------  i,  290,  582 

1917  ------------------------------------------------  2,  744,  182 

1018  ------------------------------------------------  4,  684.  176 

1919  _________________________________________________  8,  064,  734 

For  two  years,  1908  and  1909,  data  are  available  showing  the  increase 
in  power  looms  and  the  decrease  in  hand  looms  engaged  in  Japanese 
habutai  manufactures.  In  1908  there  were  4,930  power  looms  and 
42.637  hand  looms;  in  1909,  8,127  power  looms  and  40,075  hand 
looms.  In  1908,  1,087,104  pieces  of  habutai  were  produced  on  power 
looms  and  1,350.468  on  hand  looms;  in  1909,  1,394,016  on  power  looms 
and  1.258,236  on  hand  looms. 

Another  feature  referred  to  is  the  fact  that  at  one  time  the  French 
silk  industry  produced  goods  similar  to  the  Japanese  specialty  of 
habutai.  The  dyeing  industry  in  that  country,  being  more  power- 
ful politically  than  the  weaving  industry,  secured  a  great  reduc- 
tion of  duty  and,  for  a  time,  the  free  importation  of  cloths  of  this 
class.  The  result  was  that  France  entirely  lost  that  section  of  her 
weaving  industry,  although  very  much  more  advantageously  situ- 
ated than  the  United  States  for  competition.  To-day  a  large  part 
of  the  goods  brought  here  from  France  are  woven  in  the  Orient, 
dyed  and  finished  in  France,  and  exported  as  French  goods.  (See 
pp.  3632  and  3633  for  details  of  French  duties  on  silk  manufactures 
from  1873  to  1910.) 

Available  figures  for  the  first  10  months  of  1921  indicate  that  the 
volume  of  imports  into  the  United  States  was  50  per  cent  greater 
than  in  any  of  the  preceding  four  years.  The  witness  believes  that 
the  real  effect  of  the  law  of  1913  has  never  had  any  opportunity 
to  be  thoroughly  demonstrated,  because  of  the  disturbed  conditions 
which  have  existed  since  that  time.  Even  before  the  beginning  of 
hostilities  in  Europe,  however,  there  were  evidences  of  a  decided 
increase  in  the  importation  of  silk  goods,  particularly  from  the 
Orient  and  more  particularly  from  Japan.  The  abolition  of  specific 
duties  worked  for  greater  advantage  to  countries  of  low  labor  cost 
than  to  those  of  high  labor  cost.  Furthermore,  it  is  difficult  to  de- 
termine the  value  of  many  oriental  goods,  because  little  is  known  as 
to  their  costs  of  production. 

The  witness  ascribed  the  difference  between  his  figures  on  im- 
ports and  those  presented  by  Mr.  Kridel  to  his  own  use  of  quanti- 
ties. while  Mr.  Kridel  had  used  values.  Prices  were  cut  in  half,  so 
that  his  figures  show  a  decrease,  although  in  quantity  there  was  a 
decided  increase. 

As  to  reexports,  mentioned  by  Mr.  Kridel  as  having  occurred  in 
1920,  the  reply  is  that  such  reexports  as  occurred  resulted  from  the 
cutting  in  half  of  prices.  The  Japanese  found  it  profitable  to  re- 
export the  goods  to  Japan,  and  later  ship  them  back  here  so  that  the 
duty  would  be  assessed  upon  the  lower  price. 


Hearings:    Pajrps  3SI9  -3fi<>6. 

Witness:  Mr.  Ernest  J.  Ruegg.  representing  Schwarzenbach. 
Huber  &  Co. 

Costs  and  selling  prices.  —  In  China  the  price  of  pongees  runs  from 
25  cents  up.  The  cloth  that  can  be  bought  in  China  for  about  25 


410  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

cents  would  cost,  in  Schwarzenbach,  Huber  &  Cp.'s  mills,  85  cents 
per  yard.  In  making  this  cloth,  a  weaver,  earning  42  to  45  cents 
per  hour3  would  probably  tend  three  looms,  upon  each  of  which 
would  be  produced  10  to  12  yards  per  loom  per  day. 

The  best  information  obtainable  is  that  Japanese  wages  are  about 
10  per  cent  of  American  and,  making  a  very  liberal  allowance  for 
differences  in  efficiency  of  labor,  the  Japanese  conversion  cost  is  not 
over  25  per  cent  of  the  American.  Japanese  mills  produce  about 
the  same  yardage  in  a  working  day  of  11  hours  as  United  States 
mills  do  in  a  working  day  of  8  hours.  As  for  materials,  American 
mills  buy  raw  silk  in  the  same  market  as  France,  England,  and  other 
countries.  The  Chinese  and  Japanese,  in  the  witness's  opinion,  have 
the  considerable  advantage  of  a  local  market,  with  a  resulting  sav- 
ing in  transportation  costs. 

Size  of  industry. — Schwarzenbach,  Huber  &  Co.,  who  began  busi- 
ness in  1883  and  own  a  number  of  plants,  employ,  when  running 
full  capacity,  about  5,000  people.  The  firm  expanded  its  facilities 
during  the  war  period,  the  latest  additions  being  two  new  plants 
erected  about  three  years  ago.  Now,  however,  with  imports  increas- 
ing, it  is  unable  to  run  full  capacity. 

Comparability. — This  company  does  not  now  manufacture  goods 
exactly  like  the  imported  pongees  and  habutais,  although,  before 
the  present  tariff  act  went  into  effect  in  1913  it  did  produce  consider- 
able quantities  of  both  habutais  and  pongees.  The  Payne- Aldrich 
tariff  was  so  fair  that  orders  for  this  class  of  goods  were  sometimes 
divided  evenly  between  domestic  manufacturers  and  importers.  The 
duty  was  neither  too  high  nor  too  low ;  it  gave  both  a  chance.  When 
the  present  45  per  cent  duty  went  into  effect,  Schwarzenbach,  Huber 
&  Co.  had  immediately  to  discontinue  the  manufacture  of  this  class 
of  goods — goods  for  which  a  very  excellent  trade  had  been  built  up, 
with  a  lot  of  good  will  and  many  connections.  In  order  to  hold  this 
trade,  it  has  since  that  time  regularly  imported  from  Japan  both 
habutais  and  pongees,  and  will  continue  importing  them  until  the 
adoption  of  a  tariff  which  permits  their  manufacture  here.  At  pres- 
ent, imports  are  increasing,  although  domestic  mills  can  not  keep 
going  at  anything  like  full  capacity.  , 

While  the  goods  produced  here  now  are  not  closely  similar  to  those 
imported,  the  imports  are  competitive  because,  if  they  did  not  come 
in,  domestic  silks  would  be  used  in  their  place. 

Rates  suggested. — The  minimum  ad  valorem  provision  of  this 
paragraph,  should  be  increased  to  38|  per  cent  on  American  valua- 
tion, or  55  per  cent  on  foreign  valuation. 

Domestic  silk  weavers  would,  of  course,  prefer  to  have  the  specific 
duties  raised  to  such  an  extent  that  they  would  become  operative,  but 
this  would  require  so  great  an  increase  that  it  could  hardly  be  asked 
for.  The  least  that  could  be  done  would  be  to  put  the  ad  valorem 
provision  at  a  figure  equal  to  the  ad  valorem  equivalent  of  the  Payne- 
Aldrich  law,  which  worked  out  to  about  55  per  cent.  Doing  this 
would  help  some,  though,  in  the  opinion  of  the  witness,  not  muHh. 

The  specific  rates  as  they  now  stand  in  the  House  bill  would  not  be 
operative  except  in  one  or  two  insignificant  instances.  Mr.  Kohlberg 
has  stated  that  Chinese  pongees  would  be  excluded  through  the  ac- 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  411 

tion  of  these  specific  rates.  Even  if  the  specific  duty  on  them  should 
turn  out  to  be  115  per  cent,  as  Mr.  Kohlberg  states,  these  goods  could 
not  be  produced  here.  It  would  take  a  duty  equal  to  at  least  200 
per  cent  ad  valorem,  which  would  mean  an^  increase  in  the  House 
bill  specific  rates  of  something  like  75  per  cent.  Neither  the  specific 
rates  of  the  House  bill  nor  the  38£  per  cent  American  valuation  will 
keep  these  goods  out, 

Remarks. — Imports  of  silk  cloths  are  constantly  increasing.  For 
the  first  10  months  of  1919,  the  import  was  2,000,000  pounds;  for  the 
first  10  months  of  1920, 1,500,000  pounds;  and  for  the  first  10  months 
of  1921,  3,852,000  pounds. 

Hearings:  Pages  3827-3854. 

Witness:  Mr.  Samuel  Kridel,  representing  manufacturers  of  silk, 
and  traders. 

Cost  and  selling  prices. — It  is  very  difficult  to  secure  actual  cost 
figures  on  American  fabrics.  The  Silk  Association  of  America  sent 
out  to  all  manufacturers  of  broad  silk  a  letter  asking  for  costs  on  four 
specifically  described  fabrics,  for  which  the  raw  silk  price  basis  was 
prescribed.  Returns  upon  the  same  fabric  showed  as  much  as  40 
per  cent  difference  between  different  concerns.  Upon  a  colored 
taffeta  of  168  threads  per  inch  of  warp  and  92  threads  per  inch  of 
filling  the  costs  supplied  varied  from  $0.965  to  $1.318  per  yard ;  upon 
a  black  messaline  of  162^  threads  per  inch  of  warp  and  84  threads 
per  inch  of  filling,  from  $0.908  to  $1.25  per  yard;  upon  a  crepe  de 
chine  of  120  double  threads  per  inch  of  warp  and  80  threads  per  inch 
of  filling,  from  $1.08  to  $1.50  per  yard;  upon  a  crepe  Georgette 
of  80  single  ends  per  inch  and  84  threads  per  inch  of  filling,  from 
$0.84  to  $1.10.  For  detailed  description  of  the  fabrics  and  a  complete 
list  of  the  cost  variations,  see  pages  3832  and  3833. 

Japanese  wage  costs  have  increased  from  300  to  350  per  cent  over 
the  prewar  basis.  From  careful  investigation,  it  would  appear  that 
wages  in  Japan  are  about  one-sixth  of  American,  not  one-tenth,  as 
stated  by  some  witnesses.  In  efficiency,  the  Japanese  are  at  least  from 
50  to  70  per  cent  below  us.  The  wages  paid  reeling  girls  in  Japan, 
as  well  as  conditions  existing  in  the  reeling  industry,  as  outlined  by 
Mr.  Cheney,  have  no  bearing  as  a  basis  of  comparison  of  wages  paid 
in  the  domestic  weaving  industry.  Low  wages  and  inefficiency 
usually  go  hand  in  hand.  It  makes  a  vast  difference  whether  a 
weaver  operates  a  slow  and  primitive  loom  in  Japan  or  three  or  four 
modern  high-speed  looms  in  this  country.  A  loom  in  this  country 
produces  two  or  three  times  as  much  in  the  same  day  as  do  the  primi- 
tive slow-weaving  Japanese  looms.  It  is  doubtful  whether  Japanese 
imports  of  textile  machinery  are  for  use  in  the  silk  industry ;  they  are 
probably  for  use  in  making  cotton  goods.  In  the  silk  industry  the 
Japanese  do  not  seem  inclined  to  adopt  modern  methods.  On  page 
3833  will  be  found  cost  data  on  Japanese  habutai  and  pongee. 

The  witness  submitted  a  Japanese  commodity  index  (p.  3833) 
for  each  month  from  January,  1913,  to  November,  1920,  inclusive, 
showing  an  increase  from  134  in  January,  1913,  to  425  in  March, 
1920.  In  April,  1920,  a  decline  began  which  carried  the  index  to  292 
in  November.  He  also  filed  a  table  showing  prices,  present  duties, 


412 


DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 


and  proposed  Fordney  bill  duties  upon  three  grades  of  Chinese 
pongee,  summarized  below;  for  the  full  table  see  page  3833. 


Description. 

Price  per 
piece. 

Present 
duty  per 
piece  (45 
percent). 

Fordney 
duty  per 
piece 
($3  per 
pound). 

Per  cent 
of  Ford- 
ney duty 
to  foreign 
value. 

Honan  poi 

igee,  39  ounces  to  pie^e 

$6  60 

$2  97 

$7  31i 

110 

Ninghai  ft 

rsts,  123  ounces  to  piece  

16.67 

7.49J 

23.06i 

132 

Shantung, 

35  ounces  to  piece  

2.794 

1.24J 

6.56| 

236 

The  witness  submitted  data  on  French  and  Swiss  costs,  wages,  and 
working  conditions,  referring  to  a  table  on  pages  3834  and  3835. 
Swiss  wages  and  living  costs  show  especial  increases  over  pre-war 
rates. 

Size  of  industry. — In  1914  the  silk  industry  of  America  supplied 
88  per  cent  of  the  total  domestic  consumption  of  silk  goods,  including 
knit  goods.  During  the  six  years  1914-1919  the  disparity  between 
imports  and  exports  grew  steadily  greater  notwithstanding  the  lower 
duties  of  the  Underwood  law.  The  total  imports  in  1919  equaled 
only  6  per  cent  of  the  domestic  production.  The  war,  in  the  opinion 
of  the  witness,  had  nothing  whatsoever  to  dp  with  this. 

The  witness  submitted  tables  (see  Hearings,  pp.  3831  and  3832) 
showing  the  growth  of  the  domestic  silk  manufacturing  industry 
from  1899  to  1919  and  domestic  production  in  1914  and  1919.  For 
comparison  with  the  latter  figures,  he  gave  a  table  showing  imports 
of  various  silk  products  in  1914  and  1919.  These  tables  show  in  1914 
for  silk  fabrics  in  the  piece  a  domestic  production  valued  at  $137,- 
720,000  and  an  import  valued  at  $11,984,821 ;  in  1919,  a  domestic  pro- 
duction valued  at  $391,226,000  and  an  import  valued  at  $28,416,781. 

Comparability. — None  of  the  goods  from  Japan  and  from  other 
countries  are  similar  to  those  manufactured  in  the  domestic  mills  in 
which  the  witness  is  interested.  The  imported  goods  come  in  com- 
petition with  domestic  goods  only  in  the  sense  that  imported  ma- 
terial might  be  replaced  by  domestic  products.  When,  as  has  been 
stated  by  witnesses,  they  formerly  produced  goods  like  the  imported 
habutai  and  pongees,  what  they  made  was  similar  appearing  but  not 
the  same  goods.  The  oriental  habutais  and  pongees  are  made  from 
silk  of  such  low  grade  that  it  could  not  be  used  here. 

Rates  suggested. — The  45  per  cent  ad  valorem  foreign  valuation 
duty  at  present  in  operation  under  the  Underwood  law  should  be  re- 
tained. If,  however,  specific  duties  should  be  adopted  a  special  para- 
graph should  be  enacted  covering  fabrics  composed  of  tussah  or  wild 
silk.  Upon  these  cloths  the  specific  rates  of  the  Fordney  Act  would 
run,  as  was  shown  in  the  tables  given  above  under  "  Costs  and  selling 
prices,"  from  110  to  236  per  cent  on  foreign  value  and  would,  in  the 
witness's  opinion,  be  prohibitive.  A  suggested  paragraph  covering 
these  goods  follows : 

Woven  fabrics  in  the  piece,  composed  wholly  or  in  chief  value  of  tussah  or 
wild  silk,  weighing  more  than  1TV  ounces  per  square  yard,  but  not  more  than 
2£  ounces  per  square  yard,  if  in  the  gum,  $1.75  per  pound ;  ungummed.  wholly 
or  in  part,  $2.25  per  pound ;  if  dyed  or  printed  in  the  piece  or  further  advanced, 
$2.50  per  pound ;  if  weighing  more  than  2i  ounces,  but  not  more  than  8  ounces 
per  square  yard,  if  in  the  gum,  $1.50  per  pound ;  if  ungummed  wholly  or  in  part, 
$1.75  per  pound ;  if  dyed,  printed,  or  further  advanced,  $2  per  pound. 


DIGEST   OF   TARIFF   HEARINGS,  H.  R.   7456. 


413 


The  provision  of  25  cents  per  pound  additional  on  fabrics  having 
threads  or  yarns  containing  more  than  30  turns  of  twist  to  the  inch 
is  both  unnecessary  and  impracticable.  The  American  throwing 
.industry  is  very  efficient  in  the  production  of  hard  twist  yarns,  and  the 
fabrics  made  therefrom  are  manufactured  here  on  a  large  scale  and 
need  no  extra  protection.  It  is  very  difficult,  moreover,  to  ascertain 
whether  a  foreign  fabric  has  threads  of  30  turns  of  twist  to  the  inch. 
Its  ascertainment  is  highly  technical,  scientific,  and  tedious,  and  the 
dividing  line  would  be  a  matter  of  serious  contention  at  all  times. 

The  proposed  American  valuation  should  not  be  adopted,  because 
in  very  few  cases  are  foreign  silks  strictly  comparable  in  construction, 
material,  and  kind  to  domestic  silks;  because  the  basis  of  appraisal 
on  the  American  valuation  would  be  subject  to  great  guesswork  and 
would  vary  in  different  parts  in  accordance  with  the  views  of  the 
individual" appraisers;  because  of  the  difficulty  of  arriving  at  accu- 
rate cost  figures  on  American  fabrics  as  illustrated  by  the  Silk  Asso- 
ciation costs  shown  above  under  "Costs  and  selling  prices";  and 
because  such  a  basis  of  valuation  would  exclude  to  a  very  great  extent 
importation  of  silk  goods  from  France,  a  country  to  which  the 
American  silk  industry  is  indebted  for  creation  of  new  ideas  and 
new  styles.  (See  figures  under  "  Costs  and  selling  prices.") 

Remarks. — The  United  States  formerly  imported  from  France 
goods  woven  in  Japan,  but  dyed  and  finished  in  France.  In  the  last 
lew  years  this  country  excelled  splendidly  in  the  field  of  dyeing  and 
finishing  Japanese  goods,  so  that  now  they  are  brought  in  directly 
from  Japan  and  dyed  and  finished  here.  These  goods  form,  indeed, 
the  basis  of  subsequent  manufacture. 

Undervaluation,  in  the  opinion  of  the  witness,  very  rarely  occurs. 
Full  records  are  kept  at  appraisers'  stores  of  every  importation,  and 
those  from  Japan  are  appraised  on  the  basis  of  regular  price  data 
secured  by  American  consuls  in  that  country. 

Hearings :  Pages  3814-3819. 

Witness :  Mr.  Alfred  Kohlberg,  an  importer. 

Rates  suggested. — Practically  all  pongees  come  within  the  brackets 
of  the  Fordney  bill  covering  ungummed  fabrics  in  the  gray  weighing 
from  1^  to  2|  ounces  and  from  2J  to  8  ounces  at  $2.75  and  $3  per 
pound,  respectively.  That  these  proposed  duties  on  pongees  coming 
from  China  mean  tremendous  and  varying  increase  over  the  straight 
45  per  cent  ad  valorem  rate  at  present  in  effect  will  be  seen  from 
the  following  table,  covering  the  main  grades  of  this  type  of  goods 
imported  from  that  country: 

Chinese  silk  pongees  (Tussah) — Duty  per  piece. 


Under- 
wood. 

Fordney. 

Increase. 

Per  cent 
of 
increase. 

A.  32/34  ounce,  17/18  yard  Shantung  

$1.35 
7.80 

$6.20 
18.00 

$4.85 
10.20 

359 
131 

3  15 

7  30 

4  15 

131 

D   120/130  ounce  28/30  yard  Ninghai       

7.50 

23.25 

15.75 

210 

The  witness  imported   in   1920  from   China  496,368  pounds  of 
pongee,  valued  at  $1,288,373,  and  paid  a  duty  of  $579.767.  or  45  per 


414 


DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 


cent.     Under  the  Fordney  tariff  of  $3  per  pound  he  would  have  paid 
a  duty  of  $1,489,104,  an  increase  of  157  per  cent. 

On  Japanese  pongees  the  increases,  as  will  be  noted  from  the  fol- 
lowing figures,  are  not  nearly  so  great. 

Japanese  silk  pongees  (Tussah) — Duty  per  piece. 


Under- 
wood. 

Fordney. 

Increase. 

Percent 
of 
increase. 

E.  12  momme,  33-inch, 
F.  14  momme,  33-inch, 
G.  16  momme,  33-inch, 

50-yard  pieces  

$8.70 
10.50 
13.30 

$13.20 
15.40 
17.60 

$4.50 
4.90 
4.30 

51 
46 

32 

50-yard  pieces  

50-yard  pieces 

Chinese  pongees  are  made  on  hand  looms,  are  rough  in  appear- 
ance, and  contain,  as  imported,  a  great  deal  of  gum  and  consider- 
able amounts  of  starch.  The  last-mentioned  characteristics  add,  of 
course,  to  their  weight  and  make  the  application  of  a  specific  duty 
to  them  unfair,  unless  the  actual  boil-off  weight  be  used.  The  best 
solution  is  to  leave  the  duty  as  at  present,  45  per  cent  ad  valorem  on 
foreign  valuation.  In  case  American  valuation  is  adopted,  22.9  per 
cent  is  suggested  as  the  proper  rate.  This  suggestion  is  based  upon 
the  fact  that  the  witness's  sales  of  Chinese  and  Japanese  fabrics  in 
the  first  11  months  of  1921  amounted  to  $391,927,  while  the  duty 
paid  by  him  on  these  goods  amounted  to  $89,743,  which  works  out  at 
exactly  22.9  per  cent  of  the  sales  value. 

In  case  specific  duties  are  maintained,  a  special  rate  on  tussah  of 
$1.50  per  pound,  instead  of  $3  per  pound,  which  is  a  prohibitive  rate. 
is  suggested.  Even  this  duty  would  mean  a  considerable  advance 
over  the  present  duty.  Calculated  on  the  witness's  last  year's  sales 
the  increase  would  be  from  45  per  cent  to  58  per  cent  on  foreign 
value — an  increase  which  would  not  be  prohibitive. 

Hearings:  Pages  3854-3857. 

Witness :  Mr.  Armin  C.  Stapf er,  representing  the  Silk  Association 
of  America. 

Costs  and  selling  prices. — In  the  United  States  a  weaver  operates 
from  three  to  four  looms  while  in  Japan  he  operates  only  one  loom, 
and  under  primitive  conditions.  Differences  in  wages  are  therefore 
greatly  offset  by  differences  in  efficiency.  For  instance,  on  habutai 
a  weaver  in  Japan  would  produce,  working  on  one  loom,  between 
6  and  8  yards  a  day,  while  in  this  country  a  weaver,  working  on 
three  or  four  looms,  produces  at  the  rate  of  12  to  15  yards  per  loom 
per  day.  Even  with  modern  looms  and  the  experience  and  oppor- 
tunities gained  during  the  war,  the  Japanese  made  no  impression  on 
the  American  market.  The  truth  is,  they  have  not  reached,  even  with 
the  modern  looms  they  use  in  the  cotton  industry,  the  American 
state  of  perfection  in  manufacture.  A  Japanese  factory  is  neither 
so  efficient  nor  so  well  organized  as  an  American.  A  proof  of  this 
inferiority  in  production  is  found  in  the  fact  that,  despite  their  cheap 
labor,  the  Japanese  have  not  been  able  successfully  to  make  crepe 
georgettes  and  crepe  de  chine  for  this  market,  although  in  making 
these  fabrics  the  ratio  of  labor  costs  to  total  costs  is  greater  than  in 
the  case  of  habutai. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456.  415 

Comparability. — Japanese  imports  consist  chiefly  of  habutai. 
This  is  a  unique  fabric,  not  made  in  this  country.  It  is  made  from 
inferior  silk  which  could  not  "be  used  upon  American  looms.  The 
Japanese  have  made  some  attempts  to  export  to  this  country  crepe  de 
chine  and  crepe  georgette  but  these  were  rather  disastrous.  They 
did  send  some  shirtings  during  the  war,  but  this  was  due  to  the  short- 
age in  the  domestic  supply  and  has  long  since  stopped. 

Rates  suggested. — It  is  now,  as  it  has  been  in  the  past,  imprac- 
ticable to  have  specific  rates.  Market  prices  fluctuate  very  greatly 
and  specific  rates  properly  adjusted  to-day  may  be  out  of  proportion 
to-morrow. 

Hearings :  Pages  3767-3770. 

Witness :  Mr.  H.  E.  Miles,  chairman  of  the  Fair  Tariff  League. 

Costs  and  selling  prices. — One-half  of  the  cost  of  making  silk  is 
the  raw  material.  To-day  the  tariff  on  silk  is  45  per  cent,  or  90 
per  cent  on  all  the  other  cost  items,  including  the  profit  of  the  for- 
eigner, his  overhead,  and  his  wages. 

Comparability. — There  is  to-day  a  virtual  embargo  on  the  importa- 
tion of  silks  for  general  use  in  the  United  States.  There  is  none  com- 
ing in  competition  against  the  production  of  the  United  States  except 
the  cheap  habutai  from  Japan  and  the  pongees  from  China,  two 
things  which,  apparently,  American  manufacturers  do  not  want  to 
make. 

Rates  suggested. — Thirty  per  cent  on  foreign  valuation. 

PARAGRAPH  1206. — VELVETS,  PLUSHES,  AND  OTHER  PILE  FABRICS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIOHER  DUTIES  : 

Mr.  Frederick  F.  Kip,  representing  Salts  Textile  Manufacturing  Co.  and 
other  pile-fabric  manufacturers,  Bridgeport,  Conn. 

FAVORING  LOWER  DUTIES  : 

Mr.  Samuel  Kridel,  representing  J.  Kridel,  Sons  &  Co.,  and  other  manufac- 
turers and  importers  of  silk.     (Also  requesting  reel  assificat  ion. ) 

Hearings :  Pages  3803-3813. 

Witness :  Mr.  F.  F.  Kip,  representing  Salts  Textile  Manufacturing 
Co.  and  others. 

Costs  and  selling  prices. — Wages  in  the  mills  of  the  witness  were 
reduced  twice  in  1921,  the  total  reduction  amounting  to  about  22  per 
cent.  Even  now  they  average,  however,  from  75  to  90  per  cent  more 
than  in  1914. 

Size  of  industry. — The  Salts  Textile  Manufacturing  Co.  employs 
from  3,500  to  4,000  workers.  Until  the  last  reduction  in  wages  men- 
tioned it  was  running  its  mills  only  three  days  a  week.  At  present  it 
is  producing  for  stock  in  anticipation  of  a  future  market. 
'  Rates  suggested. — The  ad  valorem  minimum  provision  of  the  House 
bill  should  be  increased  from  33^  to  4H  per  cent  on  American  valua- 
tion. In  passing  upon  this  request  it  should  be  considered  that  silk- 
pile  fabrics  are  luxuries. 

All  previous  tariffs,  including  that  of  1913,  have  accorded  to  vel- 
vets, plushes,  and  other  pile  fabrics  a  higher  rate  of  duty  than  silk 
fabrics  woven  in  the  piece.  (Par.  1205.)  This  is  necessary  because 


416  DIGEST   OF   TARIFF   HEARINGS,    H.   R.    7450. 

the  principal  material  of  pile-fabric  manufacture,  spun  silk  (par. 
1202),  has  always  been  dutiable  at  from  30  to  35  per  cent. 

Suggested  reclassification. — Hatters'  plush,  covered  in  the  House 
bill  by  paragraph  1453,  should  be  included  in  this  paragraph  by  in- 
serting in  line  13,  page  133,  after  "  plushes,"  the  words  "  including 
such  as  are  commercially  known  as  hatters'  plush."  For  a  discussion 
of  the  reasons  for  this  suggestion,  see  Mr.  Kip's  testimony  on  para- 
graph 1453. 

Hearings:  Pages  3826-3851. 

Witness :  Mr.  Samuel  Kridel,  representing  J.  Kridel,  Sons  &  Co. 

Costs  and  selling  prices. — On  a  brocaded  velvet  imported  by 
Menke,  Kaufman  &  Co.  foreign  cost  was  $3.01 ;  landed  cost,  $3.28 ; 
duty  under  present  law,  $1.50;  domestic  selling  price,  $5.46,  upon 
which  the  House  bill  rate  of  33£  per  cent  would  amount  to  60  per  cent 
on  foreign  value. 

Rates  suggested. — Objection  was  raised  to  the  specific  rates  on 
velvet  and  plush  ribbons  as  provided  in  paragraph  1206,  page  134, 
line  15  to  the  end  of  the  paragraph.  It  was  urged  that  because  of 
the  way  they  are  packed  it  is  impossible  to  obtain  their  weight  with- 
out destroying  in  some  measure  the  appearance  of  the  goods  and, 
furthermore,  that  because  of  variations  in  weight  due  to  deviations 
in  cutting  the  pile  the  weight  of  the  sample  chosen  by  the  examiner 
might  not  be  indicative  of  the  average  weight  of  the  whole  shipment. 

PARAGRAPH  1206. — HATTERS'  PLTJSH. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  ;  ALSO  RECLASSIFICATION. 

Mr.  Horace  R.  Cheney,  representing  the  Silk  Association  of  America,  New 

York  City. 

Mr.  Frederick  F.  Kip,  representing  Salts  Textile  Manufacturing  Co.,  New 
York  City. 

Hearings :  Page  3785. 

Witness :  Mr.  Horace  B.  Cheney. 

Rates  suggested. — This  paragraph  should  be  eliminated  and  hat- 
ters' plush  thus  be  made  dutiable,  like  other  plushes,  under  para- 
graph 1206.  The  material  is  supposed  to  cover  plush  used  exclusively 
in  making  men's  silk  hats,  yet  imports  have  increased  with  a  de- 
creased use  of  such  hats. 

Hearings:  Pages  3803-3813. 

Witness:  Mr.  Frederick  F.  Kip,  representing  pile  fabric  manu- 
facturers. 

Rates  suggested. — The  witness  suggests  that  this  paragraph  be 
eliminated  and  that  hatters'  plush,  like  other  plushes,  be  subject  to 
the  duties  that  may  be  provided  in  paragraph  1206.  To  this  end 
it  is  urged  that,  in  paragraph  1206,  after  the  word  "plushes,"  there 
be  inserted  the  words  "including  such  as  are  commercially  known 
as  hatters'  plush." 

Under  the  present  and  preceding  laws,  which  provide  separately 
for  hatters'  plush  such  as  is  used  in  making  men's  hats,  there  has 
been  a  great  deal  of  trouble  at  the  customhouse  and  some  litigation. 
Years  ago  this  provision  cost  the  Government  $20,000,000  in  refunds 
of  duty.  The  language  of  the  House  bill,  following  the  recommenda- 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  417 

tion  made  on  page  580  of  "Summary  of  Tariff  Information"  (pre- 
pared in  1920  for  the  Committee  on^Ways  and  Means),  which  con- 
fined the  operation  of  this  paragraph  to  hatters'  plush  of  qualities 
and  width  generally  used  in  the  making  of  men's  silk  hats.,  is  a 
great  improvement.  It  leads  to  the  paradoxical  result,  however,  that 
plush  of  the  grade  used  for  making  men's  silk  hats  of  22  or  26£ 
inches,  the  widths  ordinarily  used  for  men's  silk  hats,  will  come  in 
at  the  low  rate  of  10  per  cent  ad  valorem,  while  plush  of  the  same 
quality  imported  in  any  other  width  would  come  in  at  33^  per  cent — a 
duty  that  should  be  increased  to  4LJ  per  cent.  This  inequity  the  wit- 
ness protested  against.  It  did  not  matter  a  great  deal  when  the 
qualities  of  plush  used  in  making  men's  hats  were  rarely  used  for 
other  purposes  and  when  the  increase  has  been  for  use  in  making 
women's  hats.  But  right  at  present  the  matter  is  of  urgent  im- 
portance, for  it  is  this  type  of  plush  that  is  now  in  vogue  and  which, 
according  to  the  estimate  of  the  witness,  now  constitutes  60  per  cent 
of  the  European  production  of  velvets  and  plushes.  In  1922  the 
American  demand  therefor  will  be  extensive,  and,  in  the  opinion  of 
the  witness,  if  the  10  per  cent  duty  remains  there  will  be  danger  of 
the  throwing  out  of  employment  of  a  large  proportion  of  domestic 
employees  making  this  class  of  goods. 

Furthermore,  if  the  operation  of  the  paragraph  could  be  restricted 
to  plush  used  in  making  men's  sjlk  hats  it  would  be  placing  a  much 
lower  duty  on  the  material  used  for  this  extreme  luxury  than  on 
that  used  for  making  hats  used  by  women  of  moderate  means. 

If  a  separate  paragraph  be  retained  for  hatters'  plush,  it  should 
be  placed  in  schedule  12  instead  of  in  schedule  14.  This  was  also 
recommended  in  the  "Summary  of  Tariff  Information,"  referred 
to  above. 

PARAGRAPH  1207. — SILK  RIBBOXS  AND  SMALL  WARES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frederick  F.  Kip,  representing  Salts  Textile  Manufacturing  Co.,  Bridge- 
port, Conn. 

Hearings:  Pages  3803-3813. 

Rates  suggested. — The  House  bill  rate  of  33£  per  cent  ad  valorem 
should  be  increased  to  40  per  cent  ad  valorem  on  American  valuation. 

PARAGRAPH  1208.— KNIT  GOODS. 
WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frederick  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co., 
Bridgeport.  Conn. 

Mr  Sidney  Worms,  representing  the  Franklin  Knitting  Mills,  519  East 
Seventy-second  Street,  New  York  City,  and  the  National  Knitted  Outer- 
wear Association. 

Hearings :  Pages  3803-3813. 

Witness :  Mr.  F.  F.  Kip,  representing  the  Salts  Textile  Manufac- 
turing Co. 


418  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Rates  suggested. — On  knit  fabrics,  page  135,  line  12,  the  rate  should 
be  increased  from  35  to  41^  per  cent  ad  valorem  on  American  valua- 
tion; on  knit  hosiery  and  underwear,  page  135,  line  14,  from  40  to 
46£  per  cent  ad  valorem  on  American  valuation ;  on  knit  outerwear, 
page  135,  line  IT,  from  40  per  cent  to  46|  per  cent  ad  valorem  on 
American  valuation. 

Hearings :  Pages  3857-3861. 

Witness:  Mr.  Sidney  Worms,  representing  the  Franklin  Knitting 
Mills  and  the  National  Knitted  Outerwear  Association. 

Costs  and  selling  prices. — In  Austria,  Germany,  and  Czechoslo- 
vakia conversion  costs  on  knitted  outerwear  are  about  one-fifth  of 
the  American.  This  estimate  is  based  upon  the  foreign  wage  figures 
contained  in  the  National  Industrial  Conference  Board  Research  Re- 
port No.  40.  These  indicate  that  the  average  hourly  textile  wage  in 
Germany  is  less  than  7  marks,  or  at  present  exchange  rates  about 
4  cents,  while  the  average  in  the  United  States  is  50  cents  per  hour. 
Total  costs  are  estimated  (see  table  on  p.  3663)  to  be  $9.62  in  Germany 
and  about  $20.45  here. 

Domestic  prices  doubled  up  to  March,  1920,  and  have  declined  about 
one-third  since  then. 

Size  of  industry. — The  domestic  silk  knitted  outerwear  industry 
has  grown  from  nothing  in  about  1908  until  to-day  it  employs  about 
10,000  workers,  with  a  product  valued  at  about  $40,000,000  annually. 
Importations  have  never  been  shown  separately,  but  foreign  com- 
petition exists  and  has  been  increasing  as  exchanges  have  gone  down. 
The  increase  has  come  chiefly  from  Czechoslovakia,  Germany,  and 
Austria.  The  domestic  industry  tried  to  build  up  an  export  trade 
with  South  America,  but  with  the  extreme  break  in  prices  it  came 
to  a  disastrous  end. 

Rates  suggested. — The  rate  on  silk  knitted  outerwear,  page  135, 
line  17  of  the  House  bill,  should  be  increased  from  40  to  50  per 
cent  ad  valorem  on  American  valuation. 

At  the  hearings  before  the  Ways  and  Means  Committee  two  things 
were  requested:  (1)  A  separate  classification  for  knitted  outerwear, 
and  (2)  a  protective  rate  necessarily  higher  than  the  rate  given  to 
hosiery,  underwear,  etc.  The  higher  rate  is  required  because  knitted 
outerwear  are  articles  of  fashion  in  the  manufacture  of  which  over- 
head costs,  due  to  the  necessity  of  carrying  large  stocks  and  many 
colors,  are  high;  because  of  greater  selling  expenses;  because  of  the 
advantage  of  the  foreigner  in  having  low  overhead,  etc. ;  and  be- 
cause silk  knit  outerwear  is  a  luxury.  It  was  obviously  an  inadvert- 
ence that  a  higher  rate  was  not  granted  by  the  House,  for  without 
such  a  difference  there  would  be  no  object  in  providing  a  separate 
classification  for  silk  outerwear,  knit  or  crocheted.  In  the  case  of 
woolen  knitted  outerwear,  paragraph  1115,  a  duty  higher  than  that 
on  underwear  was  given. 

Further  recommendations:  In  paragraph  1208,  page  135,  line  5, 
after  the  word  "and,"  insert  the  word  "all";  strike  out  the  word 
"  goods  "  and  insert  the  word  "  articles  " ;  after  the  word  "  crocheted,'' 
insert  the  words  "  wholly  or  in  part." 


DIGEST   OF   TAKIFF   HEARINGS,   H.   R.   7456.  419 

PARAGRAPH   1209. — SILK  HANDKERCHIEFS  AND  MUFFLERS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVOBING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  Frederick  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co., 
Bridgeport,  Conn. 

Hearings :  Pages  3803-3813. 

Rates  suggested. — The  duty  on  woven  silk  handkerchiefs  and  muf- 
flers not  hemmed,  House  bill,  page  135,  line  20,  should  be  increased 
from  33^  to  40  per  cent  ad  valorem  on  American  valuation,  and  on 
those  hemmed  or  hemstitched,  from  40  to  46|  per  cent  ad  valorem 
on  American  valuation. 

PARAGRAPH  1210. — SILK  AND  ARTIFICIAL  SILK  SHIRT  COLLARS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  F.  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co.,  Bridge- 
port, Conn. 

Hearings :  Pages  3803-3813. 

Rates  suggested. — The  ad  valorem  duty  on  silk  shirt  collars,  House 
bill,  page  135,  line  23,  should  be  increased  from  20  to  25  per  cent  on 
American  valuation. 

PARAGRAPH  1211. — SILK  SHIRTS  AND  ARTIFICIAL  SILK  SHIRTS  AND 
SHIRT  COLLARS  FOR  MEN  AND  BOYS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  F.  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co.,  Bridge- 
port, Conn. 

Hearings :  Pages  3803-3813. 

Rates  suggested. — The  duty,  House  bill,  page  136,  line  2,  should 
be  increased  from  40  to  46»J  per  cent  ad  valorem  on  American  valua- 
tion. 

PARAGRAPH  1212. — WEARING  APPAREL'  NOT  KNIT  OR  CROCHETED. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frederick  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co., 
Bridgeport,  Conn. 

Hearings :  Pages  3803-3813. 

Rates  suggested. — The  duty,  House  bill,  page  136,  line  8,  should 
be  increased  from  40  to  96£  per  cent  ad  valorem  on  American  valua- 
tion. 


420  DIGEST  OF   TARIFF    HEARINGS,   H.  R.    7456. 

PARAGRAPH  1213. — MANUFACTURES  or  SILK,  x.  s.  P.  r. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  F.  F.  Kip,  representing  the  Salts  Textile  Manufacturing  Co.,  Bridge- 
port, Conn. 

Hearings :  Pages  3803-3813. 

Rates  suggested. — The  duty,  House  bill,  page  136,  line  13,  should 
be  increased  from  35  per  cent  to  41£  per  cent  ad  valorem  on  American 
valuation. 

PARAGRAPH  1215. — ARTIFICIAL  SILK,  AXD  MANUFACTURES  OF. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES: 

Mr.  Frederick  F.  Kip,  representing  Salts  Textile  Manufacturing  Co., 
Bridgeport,  Conn. 

Mr.  Fred  Mayer,  representing  Knitted  Outerwear  Association. 

Mr.  Albert  L.  Waitzfelder,  representing  Braid  Manufacturers'  Association, 
328  Fourth  Avenue,  New  York  City. 

Mr.  Roland  L.  Taylor,  representing  Munford,  Hunton,  Wilhang,  and  Ander- 
son, and  the  Tubize  Artificial  Silk  Co.  of  America,  Philadelphia,  Pa. 

FAVORING  LOWER  DUTIES  : 

Albert  Eckstein  &  Co.     (Brief.) 

Hearings :  Pages  3803-3813. 

Witness :  Mr.  F.  F.  Kip,  representing  Salts  Textile  Manufacturing 
Co. 

Rates  suggested. — The  ad  valorem  minimum  provision  of  23  per 
cent  on  American  valuation  upon  artificial  silk  yarn,  House  bill, 
page  137,  line  7,  should  be  increased  to  28  per  cent ;  the  ad  valorem 
duty  upon  artificial  silk  manufactures,  House  bill,  page  137,  line  10, 
should  be  increased  from  37^  to  41^  per  cent  on  American  valuation. 

Hearings :  Pages  3861-3863. 

Witness :  Mr.  Fred  Mayer,  representing  Knitted  Outerwear  Asso- 
ciation. 

Costs  and  selling  prices. — In  making  knitted  artificial  silk  sweat- 
ers and  other  outerwear,  German  conversion  costs  are  about  one-fifth 
American.  (See  p.  3659  for  statement  as  to  conversion  costs  and 
placing  total  domestic  cost  at  $7.45  per  pound  as  compared  with 
$2.97  in  Germany.)  % 

Rates  suggested. — The  compensatory  duty  of  45  cents  per  pound 
upon  manufactures  of  artificial  silk.  House  bill,  page  137,  line  9, 
should  be  increased  from  45  to  70  cents  per  pound;  the  protective 
ad  valorem  duty  of  37|-  per  cent  thereon,  House  bill,  page  137,  line 
10,  from  37|  to  60  per  cent,  on  American  valuation. 

The  reason  for  the  requested  increase  in  the  compensatory  duty  is 
that,  assessed  upon  American  valuation  of  23  per  cent,  the  duty  upon 
artificial  silk  yarn  amounts,  at  the  present  price  of  $2.75  per  pound, 
to  68  cents  per  pound,  and  10  per  cent  waste  in  production  would  in- 
crease the  necessary  compensatory  duty  to  70  cents  per  pound. 

Hearings:  Page  3654. 

Witness:  Mr.  A.  L.  Waitzfelder,  representing  Braid  Manufac- 
turers' Association. 

Rates  suggested. — The  compensatory  duty  upon  manufactures  of 
artificial  silk,  House  bill,  page  137,  line  9,  should  be  increased  from 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  421 

45  to  70  cents  per  pound,  because  at  present  prices  the  23  per  cent 
American  valuation  upon  artificial  silk  yarn  amounts  to  63  cents 
per  pound,  which,  allowing  for  waste  in  manufacture,  amounts  for 
full  compensation  to  70  cents  per  pound. 

Hearings :  Pages  3863-3869. 

Witness :  Mr.  R.  L.  Taylor,  representing  interests  as  above. 

Costs  and  selling  prices. — See  Ways  and  Means  Committee  Hear- 
ing for  tables  presented  by  the  witness  showing  actual  labor  costs  in 
Switzerland,  Belgium,  France,  and  Hungary. 

The  costs  of  raw  material  for  making  artificial  silk  yarns  are 
about  10  per  cent  lower  in  Europe  than  here. 

Size  of  industry. — The  present  artificial  silk  yarn  producing  ca- 
pacity of  the  United  States  is  probably  16,500,000  to  17,000,000 
pounds.  The  Tubize  Artificial  Silk  Co.  of  America,  represented  by 
the  witness,  started  manufacture  a  short  time  ago  at  Hopewell,  Va. ; 
it  has  so  far  attained  a  production  of  about  60  per  cent  of  the  amount 
desired.  It  now  employs  2,000  workers  and  turns  out  about  6,000 
pounds  of  yarn  per  day. 

Imports  increased  for  1,667,000  pounds  for  the  first  10  months  of 
1920  to  3,475,000  pounds  for  the  first  10  months  of  1921. 

Comparability. — American  A  quality  yarn  is  probably  the  best 
made  in  the  world.  Imported  B  and  C  quality  yarns  are  no  better 
than  American  yarn  of  the  same  quality. 

Rates  suggested. — The  specific  rate  on  single  artificial  silk  yarns, 
required  to  cover  the  present  differences  in  cost  of  manufacture  here 
and  in  Europe,  should  be  85  cents  per  pound;  on  ply  yarns  5  cents 
per  pound  more.  The  ad  valorem  catchall  should  be  38£  per  cent  on 
American  valuation  or  55  per  cent  on  foreign  valuation. 

France,  one  of  the  largest  artificial  silk  producing  countries  and 
one  of  the  largest  sources  of  American  imports,  has  a  duty  of  22.5 
francs  per  kilo  upon  artificial  yarn,  a  duty  equivalent,  at  present  ex- 
change rates,  to  about  80  cents,  while  the  American  duty  on  the 
same  basis  is  only  30  to  40  cents. 

Witness:  Albert  Eckstein  &  Co.  (Brief;  no  appearance  at  hear- 
ings.) 

Rates  suggested. — In  lieu  of  the  same  rates  as  on  yarn  made  from 
artificial  silk  or  artificial  horsehair,  as  provided  in  H.  R.  7456,  a 
separate  bracket  should  be  inserted  to  cover  yarns  made  wholly  or 
in  chief  value  of  artificial  silk  waste  or  sliver  carrying  a  duty  of  35 
cents  per  pound  for  singles  and  40  cents  per  pound  for  ply  yarns. 
In  support  of  this  request,  it  is  stated  that  while  artificial  silk  yarn 
of  150  denier  size  sells  for  $2.75  per  pound  upon  the  American 
market,  the  corresponding  size  made  from  silk  waste  or  sliver  sells 
for  only  $1.75  per  pound.  Paragraph  1215  as  amended  by  Albert 
Eckstein  &  Co.  follows: 

Yarns,  threads,  filaments,  and  lame,  of  artificial  or  imitation  silk,  or  of 
artificial  or  imitation  horsehair,  by  whatever  name  known  and  by  whatever 
process  made,  if  singles,  45  cents  per  pound;  if  tram,  50  cents  per  pound;  if 
yarns  made  wholly  or  of  chief  value  of  artificial  silk  waste  or  sliver ;  if  singles 
35  cents  per  pound ;  if  two  or  more  ply,  40  cents  per  pound :  Provided,  That 
none  of  the  foregoing  shall  pay  a  less  rate  of  duty  than  23  per  centum  ad 
valorem.  Knit  goods,  ribbons,  and  other  fabrics  and  articles  composed  wholly 
or  in  chief  value  of  any  of  the  foregoing,  45  cents  per  pound,  and  in  addition 
thereto  37$  per  centum  ad  valorem. 

77134—22 28 


422  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

SCHEDULE   13.— PAPERS  AND  BOOKS. 
PARAGRAPH  1301. — PRINTING  PAPER,  NOT  SPECIFICALLY  PROVIDED  FOR. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVOBING  PBOPOSED  OB  HIGHER  DUTIES  : 

Mr.  Gillett  Collins,  representing  the  Book  Paper  Manufacturing  Association, 
Philadelphia,  Pa. 

Hearings :  Pages  3887-3888. 

Costs  and  selling  prices. — The  average  price  of  book  paper  is  $150 
per  ton.  The  witness  has  a  quotation  from  Belgium  50  per  cent  below 
American  cost  price.  It  costs  no  more  to  get  a  shipment  from 
London  or  Belgium  than  it  does  to  ship  from  Philadelphia  to  New 
York. 

Size  of  industry. — Statisticians  of  paper  industries  state  that 
there  is  enough  book-paper  capacity  in  the  country  to  supply  all 
needs  until  1928.  As  the  increase  in  consumption  is  about  8  per  cent 
per  year,  the  industry  will  need  all  the  trade  it  can  get  in  this  country. 

Comparability. — Printing  or  book  paper  is  imported  from  Scandi- 
navia, Germany,  and  a  little  from  England.  Germany  has  a  large 
capacity  for  producing  book  paper. 

Rates  suggested. — One-half  cent  per  pound  and  10  per  cent  ad 
valorem.  The  witness  emphasizes  the  necessity  for  some  protection 
besides  the  duty  that  can  be  put  on,  because  nothing  that  can  be 
named  would  offset  the  exchange. 

PARAGRAPH  1302.— WALL  BOARD. 
WITNESSES.  AND  INTEBESTS  BEPRESENTED. 

FAVOBING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  W.  F.  MacGlashan,  representing  The  Beaver  Board  Co.,  Buffalo,  N.  T. 
FAVORING  LOWER  DUTIES  : 

Mr.  W.  G.  Saville,  representing  the  Plaster  &  Wall  Board  Co.,  Buffalo,  N.  Y. 

Hearings :    Pages  3892-3897. 

Witness:  Mr.  W.  F.  MacGlashan,  representing  the  Beaver  Board 
Co. 

Costs  and  selling  prices. — The  prewar  price  of  beaver  board,  $24 
per  1,000  square  feet,  has  risen  to  $28. 

Size  of  industry. — The  production  of  wall  board  last  year,  1920, 
amounted  to  a  little  over  1,000,000,000  square  feet. 

Rates  suggested. — Beaver  board  to  be  placed  on  the  free  list,  under 
building  materials,  in  the  same  class  with  lumber  and  laths. 

The  reasons  for  asking  this  are,  first,  that,  although  practically  all 
of  this  material  is  produced  by  American  manufacturers,  the  raw 
material  in  the  form  of  fiber  is  imported  from  Canada.  Second,  the 
need  of  conserving  American  pulp-producing  forests,  which  are  rap- 
idly becoming  exhausted.  The  total  price  paid  for  labor  in  Canada 
for  putting  the  raw  material  into  rolls  does  not  exceed  $5  per  ton. 
The  third  reason  is  that  the  free  importation  of  this  raw  material, 
or  semifinished  raw  material,  for  the  manufacture  of  wall  board  will 


DIGEST  OF   TARIFF    HEARINGS,   H.   R.    7456.  423 

not  injure  any  American  industry.  On  the  other  hand,  the  placing 
of  a  duty  on  wood  pulp  in  rolls  for  use  in  the  manufacture  of  wall 
board  will  increase  the  price  of  wall  board  to  the  American  public. 

Hearings :  Pages  3968-3971. 

Witness:  Mr.  W.  G.  Saville,  representing  the  Plaster  &  Wall 
Board  Co. 

Size  of  industry. — Wood  fiber  wall  board  was  first  manufactured 
in  America  15  years  ago.  The  output  has  increased  rapidly  to  a 
present  total  of  about  430,000,000  square  feet  annually. 

Comparability. — There  is  no  danger  of  importation  of  pulp  board 
from  Germany,  Scandinavia,  and  other  low-exchange  countries,  none 
of  their  mills  being  equipped  to  manufacture  in  the  required  thick- 
ness. Then,  too,  ocean  transportation  is  impracticable  for  rolls  of 
the  prevailing  dimensions. 

Rates  suggested. — Pulp  board  used  exclusively  in  the  manufacture 
of  wall  board  to  be  admitted  free  of  duty.  A  brief  supplementing 
the  oral  testimony  contains  suggestions  for  amendments  of  para- 
graph 1302.  No  American  manufacturers  of  wall  paper,  owning 
their  own  wood-pulp  mills  and  using  American  timber,  require  pro- 
tection, as  they  are  now  underselling  manufacturers  who  import  the 
raw  material  from  Canada. 

Kern-arks. — Wall  board  is  used  chiefly  as  a  substitute  for  laths  and 
plaster  in  building  the  cheaper  homes  in  agricultural  and  mining 
sections.  It  is  particularly  a  poor  man's  material. 

PARAGRAPH  1302. — PAPER  AND  PULPBOARD. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  John   S'trange  Paper  Co.,  Menasha,  Wis.      (Brief,  no  appearance  at 
hearings. ) 

The  brief  refers  to  the  writer's  predictions  that  free  pulp  and  paper 
would  result  in  higher  cost  of  paper  to  consumers,  and  desires  protec- 
tion for  these  products. 

Rates  suggested. — One  cent  per  pound,  or  25  per  cent  ad  valorem. 

PARAGRAPH  1304. — TISSUE  PAPER. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  N.  H.  Bussey,  jr.,  representing  tissue-paper  manufacturers. 

Hearings:  Pages   3900-3901. 

Rate®  suggested. — The  wording  of  paragraph  1304  to  be  changed, 
as  under  the  present  wording  various  grades  of  paper  might  be 
brought  in  under  other  paragraphs  at  a  lower  rate  of  duty.  Also, 
the  division  of  weights  should  be  carried  farther  so  as  to  include 
the  heavier  India  and  Bible  papers,  but  at  a  lower  rate  of  duty,  by 
inserting  the  words  "If  weighing  over  12-|  pounds  and  less  than 
18  pounds,  to  the  ream,  4  cents  per  pound  and  15  per  centum  ad 
valorem."  Under  paragraph  1304  the  rate  would  be  either  6  or  5 
cents  per  pound  and  15  per  cent  ad  valorem. 


424  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

PARAGRAPH  1305. — PAPERS  WITH  COATED  SURFACE. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Louis  T.  Stevenson,  representing  glassine  and  grease-proof  paper  manu- 
facturers. 

Hearings:  Page  3902. 

Rates  suggested. — The  manufacturers  desire  the  rates  given  in  the 
House  bill,  which  they  think  are  fair ;  information  in  their  support 
is  given  in  a  brief,  included  in  the  American  Paper  and  Pulp  Asso- 
ciation's brief. 

PARAGRAPH  1305. — GLAZED  AND  FANCY  PAPERS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  I.  O.  VanDuzer,  representing  glazed  and  fancy  paper  manufacturers. 

Hearings:  Pages  3902-3903. 

Costs  and  selling  price. — The  ordinary  value  of  paper  in  1912 
was  $1.05  per  ream ;  the  same  papers  are  quoted  to-day,  from  abroad, 
at  $3  per  ream,  or  about  three  times  the  1912  price. 

Rates  suggested. — Owing  to  this  increase  in  value,  it  is  necessary 
to  have  a  rate  of  9  cents  per  pound  to  equalize  conditions.  The  pres- 
ent rates  of  5  cents  a  pound,  and  5  cents  and  20  per  cent  ad  valorem, 
were  based  on  the  earlier  value.  With  a  tariff  permitting  it,  manu- 
facture is  carried  on ;  otherwise,  paper  is  imported. 

Under  the  1913  act,  carrying  a  duty  of  20  per  cent  ad  valorem, 
large  quantities  were  imported.  The  40  per  cent  duty  of  the  Under- 
wood bill  did  not  protect  the  industry. 

PARAGRAPH  1305. — VEGETABLE  PARCHMENT. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  J.  M.  Dohan,  representing  vegetable-parchment  manufacturers. 

Hearings :  Pages  3903-3906. 

Costs  and  selling  prices. — The  witness  formerly  made  "  waterleaf  " 
at  5  cents  per  pound  and  sold  the  paper  anywhere  from  8  to  9  and 
10|  cents.  Now,  "  waterleaf  "  is  made  at  a  cost  of  9.5  cents  and  sold 
at  17  cents. 

Size  of  industry. — The  American  industry  is  in  a  precarious  con- 
dition, as  shown  by  the  fact  that  out  of  27  establishments  only  5 
survive  today.  Home  competition  and  fear  of  foreign  competition 
make  it  necessary  to  keep  prices  low  enough  to  keep  out  the  foreign 
product. 

Comparability. — Germany  is  in  a  position  to  sell  goods  in  this 
country  at  any  time.  The  threat  of  foreign  competition  reduced 
the  price  of  paper  from  27  cents  in  1885  to  7.8  cents  in  1914. 

Rates  suggested. — An  addition  of  2  cents  to  the  specific  rate  in  the 
bill.  In  paragraph  1304,  filtering  and  copying  paper  are  set  down 
at  4  cents  a  pound,  and  in  paragraph  1309,  at  6  and  5  cents  a  pound 
respectively.  These  rates  are  "nearly  analogous"  to  the  paper 


DIGEST   OF   TARIFF   HEARINGS,,   H.   R.    7456.  425 

manufactured  by  the  witness.     The  rate  on  certain  papers  should 
be  5  cents  a  pound  and  15  per  cent  ad  valorem. 

There  is  a  fundamental  difference  between  the  imitation  parch- 
ment and  the  genuine  parchment  manufactured  by  the  witness. 
One  is  a  single  process  and  the  other  a  double  process. 

PARAGRAPH  1305. — PAPER  BAGS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  LOWER  DUTIES  : 

Mr.  Samuel  Kraut,  representing  the  Adolph  Kraut  Company,  New  York. 

Thomas  M.  Royal  &  Co.,  Bryn  Mawr,  Pa.     (Brief.) 

The  Continental  Paper  and  Bag  Mills,  New  York  City,  N.  Y.     (Brief.) 

Hearings :  Pages  3906-3910. 

Witness:  Mr.  Samuel  Kraut. 

Costs  and  selling  prices. — The  American  manufacturer  is  charging 
$6.30  for  white  bags,  $7.80  for  colored,  other  than  red,  and  $8.60  for 
red.  These  prices  represent  an  increase  of  200  to  nearly  300  per  cent 
over  pre-war,  and  are  grossly  disproportionate  to  the  increase  in  the 
price  of  paper  and  cost  of  labor.  The  difference  in  cost  between 
white  and  red  is  8  cents  per  pound,  or  64  cents  more  per  thousand 
red  bags  than  for  the  white  bags.  The  manufacturer  charges  the 
customer  $2.50  more  for  the  red  bags,  representing  a  profit,  based 
on  difference  of  color,  of  $1.66  on  an  investment  of  64  cents — over 
250  per  cent.  These  high  prices  are  due  mainly  to  the  Paper  Bag 
Trust  fixing  the  wholesale  rate. 

Rates  suggested. — A  duty  of  3  cents  a  pound.  Under  the  bill,  the 
duty  on  1,000  white  bags  would  be  $2.43£ ;  on  colored  bags,  $2.70^ ; 
anof  on  red  bags  $2.86.  Various  changes  in  paragraph  1305  are  sug- 
gested; see  page  3910. 

Remarks. — Price  list  of  bags  of  various  firms  will  be  found  on 
pages  3907-3908. 

Witness:  Thomas  M.  Eoyal  &  Co.,  Bryn  Mawr,  Pa.  (Brief;  no 
appearance  at  hearings.) 

The  firm  is  unaware  of  any  bags  ever  having  been  imported  into 
this  country  other  than  duplex  bags — made  of  two  thicknesses  of 
paper.  Consequently,  a  proposal  of  which  the  firm  has  been  in- 
formed, to  insert  the  word  "  unlined "  before  "  bags,"  would  abso- 
lutely defeat  the  object  of  the  paragraph. 

An  attempt  has  also  been  made  to  have  paper  bags  brought  in 
under  manufactures  of  papers,  n.  s.  p.  f.,"  at  26  per  cent  ad  valorem. 
Either  of  these  changes  would  compel  the  firm  to  seek  a  new  line 
of  business,  after  originating  this  type  of  bag  in  this  country  more 
than  20  years  ago.  Large  quantities  of  imported  duplex  bags  are 
now  being  offered  in  New  York  at  prices  considerably  less  than  the 
firm's  cost  of  manufacture. 

In  a  later  communication  the  firm  again  refers  to  the  efforts  then 
being  made  to  have  duplex  paper  bags  put  on  a  lower  tariff  basis 
than  that  in  H.  R.  7456,  and  repeats  the  assertion  that  no  unlined 
bags  have  ever  been  imported  into  this  country.  The  effect  of  a 
successful  issue  to  these  efforts,  throwing  duplex  or  lined  bags  into 
the  class  of  "  manufactured  paper  goods,"  would  be  to  prevent  the 
firm,  employing  300  persons,  from  competing  with  Germany. 


426  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

Witness :  The  Continental  Paper  and  Bag  Mills,  New  York  City. 
(Brief;  no  appearance  at  hearings.) 

The  company  takes  the  view  that  a  serious  and  apparently  inad- 
vertent omission  in  H.  R.  7456  leaves  the  paper  bag  industry  en- 
tirely without  protection. 

Paragraph  1305  refers  entirely  to  bags  made  from  highest  class 
papers,  leaving  ordinary  plain  paper  bags  unprotected.  These  are 
made  from  so-called  bag  paper,  akin  to  wrapping  paper,  and  have 
been  protected  in  previous  tariff  acts.  There  should  be  equal  pro- 
tection for  these  bags,  plus  an  adequate  allowance  for  the  important 
conversion  process  to  which  the  paper  has  to  be  subjected. 

The  product  of  this  industry  is  about  $50,000,000  and  nearly  10,000 
persons  are  employed. 

PARAGRAPH  1305. — WRAPPING  PAPER. 

WITNESSES,  AND  INTERESTS  BEPKESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Abram  H.  Cohen,  representing  the  Republic  Bag  &  Paper  Co. 
The  Safepack  Mills,  Boston,  Mass.     (Brief.) 

Hearings :  Pages  3943-3945. 

Witness :  Mr.  Abram  H.  Cohen. 

Casts  and  selling  prices. — The  current  price  of  Kraft  wrapping 
paper  is  $150  a  ton.  The  cost  of  labor  per  ton  of  paper  is  from  $15 
to  $30,  according  to  the  thickness  and  weight  of  the  paper,  the  speed 
of  the  machine,  the  condition  and  age  of  the  paper  machine,  etc. 
Labor,  therefore,  receives  from  10  to  15  per  cent  of  the  cost  of  the 
finished  paper,  and  should  be  protected  to  that  extent. 

Size  of  industry. — In  1922  domestic  paper  mills  manufactured 
approximately  1,200  tons  of  Kraft  paper  per  day.  The  total  im- 
portations of  wrapping  paper  in  September,  1920,  were  387  tons; 
in  September,  1921,  402  tons;  in  October,  1920,  185  tons;  and  in 
October,  1921,  500  tons,  or  about  1  per  cent  of  the  total  amount  of 
wrapping  paper  manufactured  in  this  country.  The  exports  from 
the  United  States  were,  in  October,  1921,  1,717  tons;  in  October, 
1920,  2,188  tons;  in  September,  1921,  837  tons;  and  in  September, 
1920,  2,140  tons.  These  figures  make  the  imports  of  September  and 
October,  1920,  equal  to  13  per  cent  of  the  exports  of  the  same  grade 
of  wrapping  paper ;  and  the  imports  of  September  and  October,  1921, 
about  60  per  cent  of  the  American  manufactures  of  wrapping  paper. 
To-day  there  are  over  35  mills  with  a  production  of  about  1,500 
tons  a  day,  protected  by  a  duty  of  25  per  cent  ad  valorem. 

Comparability. — Imports  of  wrapping  paper  come  from  Canada, 
Scandinavia,  Germany,  Czechoslovakia,  Austria,  and  Jugoslavia. 
The  witness  stated  that  he  represented  several  mills  in  Scandinavia, 
Czechoslovakia,  and  Germany.  The  company  exports  to  Cuba,  Cen- 
tral and  South  America,  Australia,  and  to  a  small  extent,  to  Africa. 

Rates  suggested. — The  present  rate  of  duty  is  more  than  ample  for 
protection.  The  duty  of  23  to  25  per  cent  should  be  the  maximum, 
because  wrapping  paper  making  is  mostly  a  mechanical  process.  The 
American  mills  that  are  now  asking  for  increased  protection,  for 
fear  of  European  mills,  advanced  their  prices  10  per  cent  in  Septem- 
ber, 10  per  cent  in  October,  and  10  per  cent  in  November,  1921. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  427 

Witness:  The  Safepack  Mills,  Boston.  (Brief;  no  oppearance  at 
hearings.) 

The  brief  takes  exception  to  the  wording  of  paragraph  1305,  which, 
probably  unintentionally,  would  include  ordinary  wrapping  paper, 
having  striped  or  parallel  lines,  as  samples  inclosed.  It  is  pointed 
out  that  this  is  not  "  fancy "  or  "  decorated "  paper,  but  ordinary 
wrapping  paper,  costing  no  more  than  paper  without  the  stripes. 
Consequently,  the  duty  should  be  no  hiirher  than  for  the  latter. 

It  is  suggested  that  the  addition  of  the  words  "  including  paper 
with  striped  parallel  lines  produced  in  the  pulp,"  would  correct  this 
obvious,  though  hidden,  error. 

PARAGRAPH  1305. — PHOTOGRAPHIC  PAPER. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Nelson  Curtis,  representing  himself  (a  practical  paper  maker). 
Mr.  Thomas  W.  Stephens,  representing  the  Ansco  Co.,  New  York  City. 

Hearings:  Pages  3911-3913. 

Witness:  Mr.  Nelson  Curtis. 

Size  of  industry. — There  are  about  four  individual  companies  in 
this  country  manufacturing  photographic  and  raw  paper.  The 
Eastman  Kodak  Co.  produced  something  like  $2,000,000  or  $2,500,- 
000  worth  of  products  in  1920.  The  investment  of  the  Eastman 
Kodak  Co.  in  raw  paper  amounts  to  between  $4,000,000  and  $5,000,000. 

Rates  suggested. — A  protection  of  at  least  30  per  cent  (5  per  cent 
less  than  the  McKinley  rate)  arranged  so  as  to  contain  a  specific 
and  an  ad  valorem  duty,  as  in  the  bill,  should  be  maintained. 

Remarks. — The  witness  stated  that,  after  four  years'  experiment- 
ing, his  company  produced  a  satisfactory  paper  in  1895,  and  is  now 
engaged  in  the  making  of  raw  photographic  paper.  One  of  the 
inducements  to  go  into  this  line  of  business  was  the  protection  of  35 
per  cent  ad  valorem  in  the  McKinley  bill,  1890 — a  year  before  he 
began  experimenting.  A  good  business  was  done  up  to  1913.  The 
tariff  act  of  that  year  cut  the  rate  to  15  per  cent  ad  valorem,  and 
underselling  set  in;  then  came  the  war,  serving  as  a  protective 
tariff,  and  now,  again,  foreign  competition  prevails.  The  witness 
submitted  briefs  prepared  by  the  Eastman  Kodak  Co.  and  the 
American  Photograph  &  Paper  Co. 

Hearings :  Pages  3915-3917. 

Witness :  Mr.  Thomas  W.  Stephens,  representing  the  Ansco  Co. 

Rates  suggested. — Plain  basic  paper  (raw  photographic  paper), 
free;  baryta-coated  paper  for  sensitizing,  free.  (If  a  duty  for  reve- 
nue is  considered  necessary  on  these  items,  the  witness  requests  that 
it  be  not  more  than  10  per  cent  ad  valorem.)  Sensitized  paper,  30 
per  cent  ad  valorem — an  increase  of  5  per  cent  over  the  proposed 
rate. 

Remarks. — Mr.  Stephens  requests  that  plain  basic  paper  and 
baryta-coated  paper  for  sensitizing  be  placed  on  the  free  list  be- 
cause they  are  the  raw  material  for  the  manufacturer  of  sensitized 
paper,  a  regular  and  dependable  supply  of  which  is  not  available 
from  domestic  paper  makers.  He  states  that  the  Eastman  Co.  has 
a  large  mill  for  manufacturing  this  paper,  but  that  the  independent 


428  DIGEST  OF  TARIFF   HEARINGS,  H.  R.   7456. 

companies  are  dependent  for  their  supplies  on  foreign  sources.  The 
placing  of  these  items  on  the  free  list  would  not  seriously  affect 
domestic  paper  manufacturers,  as  there  appears  to  be  none  manufac- 
turing a  paper  suitable  for  the  finest  quality  of  photographic  prints, 
and  the  Eastman  Co.  would  not  need  protection,  as  the  foreign 
paper,  under  the  present  tariff,  costs  as  much  as,  and  at  times  more 
than,  that  made  here.  A  duty  on  this  paper  would  be  favorable  to 
the  Eastman  Co.  alone,  and  detrimental  to  the  smaller  competing 
concerns  who  are  dependent  on  the  foreign  supply. 

Sensitized  paper  should  bear  a  higher  duty  than  that  proposed, 
as  it  is  a  finished  article,  while  the  plain  basic  paper  and  the  baryta- 
coated  paper  are  part  of  the  raw  material  entering  into  it.  Besides, 
the  raw  materials  for  making  photographic  emulsion  are  subject  to 
substantial  duties.  Under  the  present  tariff  of  25  per  cent,  foreign 
manufacturers  have  been  able  to  sell  their  product  freely  here  when 
equal  to  the  domestic. 

PARAGRAPH  1305. — WET  TRANSFER  PAPER. 

WITNESS,  AND  INTEREST  REPBESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.    Philip   Bock,   representing,    as   international   president    the   Amalga- 
mated Lithographers  of  America. 

Hearings :  Pages  3932-3936. 

Kates  suggested. — The  30  per  cent  ad  valorem  rate  is  regarded 
as  absolutely  insignificant.  At  the  present  time  great  unemploy- 
ment exists  in  the  lithographic  industry,  due  to  the  importation  of 
impressions  from  original  art  work  upon  transfer  paper,  from 
which  numbers  of  impressions  are  printed  in  this  country.  This 
art  work  alone  would  cost  something  like  $5,000  in  the  case  of  an 
original  picture  exhibited  by  the  witness. 

Remarks. — In  a  filed  brief,  the  represented  interest  is  described 
as  a  labor  organization,  with  a  membership  of  over  9,000  workmen, 
representing  60,000  persons  engaged  in,  and  dependent  upon,  a 
wholly  domestic  industry,  the  exports  of  lithography  being  negli- 
gible. Lithography,  it  is  claimed,  ranks  among  the  fine  arts,  such 
as  sculpture  and  painting.  The  brief  disclaims  any  desire  to  pro- 
hibit entirely  the  importation  of  lithographic  works  of  art;  its 
purpose  is  to  persuade  Congress  to  enact  a  law  enabling  a  highly 
skilled  lithographic  workman  to  earn  commensurate  wages  and  to 
admit  of  a  reasonable  profit  from  the  labor  invested  in  the  business. 

PARAGRAPH  1305. — DECALCOMANIA. 

WITNESS,  AND  INTEREST  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

The  Croxall  Chemical  &  Supply  Co ,  East  Liverpool,  Ohio.     ( Brief ;  no  ap- 
pearance at  hearings.) 

As  users  of  decalcomania  transfer  sheets  in  the  pottery  industry, 
the  company  shows,  by  samples,  that  for  similar  production  the  price 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  429 

of  English  sheets  would  be  44  cents  as  against  35  cents  for  domestic. 
Under  present  tariff  rates,  there  is  no  competition  between  the  two 
sheets.  The  proposed  duty  would  impose  an  unjust  burden  on  the 
American  potter,  who  is  now  using  a  large  quantity  of  the  English 
high-class  sheets,  having  drifted  away  from  the  cheap,  gaudy  sheets 
of  German  manufacture. 

Rates  Suggested. — The  proposed  duty  should  apply  only  to  sheets 
costing  less  than  14  cents  at  port  of  entry.  The  present  duty  should 
be  retained  on  the  high-class  English  sheets. 

PARAGRAPH  1305. — VULCANIZED  FIBER. 

WITNESS,  AND  INTERKST  KEPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

The  Diamond  State  Fibre  Co.,  Bridgeport,  Pa.     (Brief;  no  appearance  at 
hearings.) 

The  company  would  have  a  separate  classification  for  this  mate- 
rial, other  than  manufacturers  of  paper  n.  s.  p.  f.  at  26  per  cent  ad 
valorem.  This  material  is  manufactured  by  a  chemical  process 
for  paper  and  passes  through  an  acid  bath  on  a  drum,  yielding  a 
homogeneous  laminated  mass  in  sheets  of  various  thicknesses.  A 
duty  of  26  per  cent  is  not  sufficient  to  shut  out  imports  from  Ger- 
many and  Japan;  there  should  be  a  specific  duty  on  vulcanized 
fiber  of  not  less  than  8  or  10  cents  per  pound. 

PARAGRAPH  1305. — GUMMED  PAPERS  AND  DECALCOMANIA  PAPER  NOT 

PRINTED. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Gummed  paper  manufacturers.     (Brief;  no  appearance  at  hearings.) 

The  interested  manufacurers  had  already  pointed  out,  in  a  brief 
submitted  to  the  Ways  and  Means  Committee,  that  the  Underwood 
tariff  duty  of  35  per  cent  on  gummed  papers  was  not  sufficient  to 
give  adequate  protection  to  American  manufacturers.  The  war, 
by  preventing  the  importation  otherwise  possible,  saved  the  Ameri- 
can industry  from  disaster. 

Rates  suggested. — In  asking  for  a  specific  duty  of  6  cents  per 
pound  and  30  per  cent  ad  valorem,  the  manufacturers  make  no  de- 
mand for  a  prohibitive  tariff,  but  merely  the  necessary  counterbalance 
to  low  foreign  cost  of  production.  The  following  comparative  table 
of  weekly  wages  in  the  industry  is  cited  in  support  of  this  view : 


England. 

Germany. 

United 

States. 

$17.50 

$3.50 

$37.00 

14.00 

3.50 

34.00 

15.15 

3.50 

31.50 

430  DIGEST   OF   TAKIFF   HEARINGS,   H.  R.    7456. 

Other  tables  show  the  actual  results  derivable  from  a  5-cents-per- 
pound  specific  rate,  without  an  additional  ad  valorem  rate,  as  in 
H.  K.  7456.  This  works  out,  in  the  case  of  decalcomania  paper,  to 
even  greater  disadvantage  to  the  American  manufacturer  than  in 
the  case  of  gummed  paper. 

PARAGRAPH  1306. — LITHOGRAPHIC  PICTURES,  BOOKS,  Box  COVERS, 
SOUVENIRS,  ETC. 

WITNESS,  AND  INTEBEST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Maurice  Saunders,  representing  the  Lithographic  Employers'  Associa- 
tion, New  York  City. 

Hearings :  Pages  3917-3929. 

Costs  and  selling  prices. — The  actual  cost  in  America  of  lithograph- 
ing, the  work  of  putting  the  various  colors  on  stone,  as  taken  from 
the  association's  records,  is  from  $300  to  $400.  The  transferring 
of  1,504  square  inches  of  labels,  taken  as  a  sheet  ready  to  print,  is 
from  $30  to  $35.  The  cost  of  printing,  on  an  edition  of  6,000  to 
12,000  sheets,  is  $8.50  per  1,000  sheets.  The  embossing  of  these 
labels  costs  50  cents  per  1,000.  The  metal  disks  used  to  raise  the 
gold  and  other  portions  of  the  disks  cost  from  $15  to  $20  for  the 
simpler  plates;  the  more  intricate  cost  even  more.  The  cutting  of 
cigar  bands  costs  8  cents  per  1,000.  The  witness  cited  a  German 
quotation  on  25,000  sets  of  "in  and  out"  labels  at  $11  per  1,000. 
The  identical  labels,  without  profit,  would  cost  $29.04  per  1,000  in 
America.  Other  quotations  include  one  at  $9  that  would  cost  the 
witness's  firm  $20.30,  and  another  at  $8  that  would  cost  $15.88. 
Differences  in  labor  and  material  costs  make  such  quotations  pos- 
sible. 

Size  of  industry. — There  are  about  50,000  people  engaged  in  the 
lithographic  industry  in  America.  The  work  is  of  a  high  type  and 
pays  a  high  wage  accordingly. 

Comparability. — The  witness  regards  the  situation  in  Germany 
as  being  possibly  temporary,  but  his  firm  is  perfectly  willing  to  take 
a  chance  on  the  future.  Large  additional  quantities  of  German 
goods  are  being  sold  in  this  country  and  that  competition  will  have 
to  be  met. 

Rates  suggested. — Double  the  rates  of  the  Payne-Aldrich  bill  in- 
stead of  the  Payne-Aldrich  rates  carried  in  H.  R.  7456.  Even  this 
doubled  rate  will  not  equalize  the  difference  in  labor  charge  alone. 
The  present  average  wage  for  skilled  lithographers  in  the  United 
States  is  $43.50  per  week,  while  at  the  present  rate  of  exchange  it  is 
$3  per  week  in  Germany.  Various  amendments  in  paragraph  1306 
are  suggested. 

Remarks. — The  Underwood  Act 'reduced  the  rate  in  one  bracket 
from  8J  cents  to  5  cents  per  pound,  and  importations  increased  from 
245,000  pounds  in  1913  to  1,331,000  pounds  in  1914  and  1,740,000 
pounds  in  1915.  That  is  to  say,  the  reduction  from  8£  to  5  cents 
stimulated  the  importation  in  the  first  two  years  of  the  war  from  245,- 
000  pounds  to  1,740,000  pounds. 


DIGEST  OF   TARIFF    HEARINGS,   H.   R.   7456.  431 

PARAGRAPH  1306. — CIGAR  LABELS,  BANDS,  ETC. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

Steffens,  Jones  &  Co.,  New  York  City.     (Brief.) 

Hearings :  Pages  3929-3932. 

Comparability. — The  brief  includes  the  following  comparative 
data  on  cost  of  production : 

Sketches :  Original  sketch,  American,  $20 ;  German,  $23. 

Lithographing :  Putting  on  stone,  American,  $85 ;  German,  $95  to 
$100. 

Transferring  1,504  square  inches  labels:  American,  $4.25;  German, 
$2.73. 

Printing  1,000  sheets  (2,604  square  inches),  American  $1.27i;  Ger- 
man, $1.23f . 

Embossing  labels:  1000  labels.  American,  12£  cents;  German,  66f 
cents;  original  embossing  plate,  American,  $8.50;  German,  $18. 

Embossing  bands :  One-half  sheet,  32|  by  48  inches,  containing  846 
bands,  equivalent  to  423  bands  embossed  at  once  in  America;  40 
bands  only  can  be  embossed  at  once  in  Germany  against  423  in 
America. 

Cutting:  Cutting  of  1,000  bands,  American,  2  cents  (500  labels  are 
cut  at  once)  ;  German,  4|  cents  (50  labels  are  cut  at  once). 

The  brief  states  that  American  lithographers  sell  their  labels  in 
Canada,  Holland,  England,  and  even  in  Germany  in  successful  com- 
petition with  the  German  goods.  This  could  not  be  done  if  the 
cost  of  production  were  higher  in  America. 

Rates  suggested/. — Cigar  labels  and  flaps,  printed  in  less  than  8 
colors  and  bronze,  10  cents  per  pound;  bands,  15  cents  per  pound, 
instead  of  15  and  20  cents  as  at  present.  Cigar  labels  and  flaps 
printed  in  8  or  more  colors  and  bronze,  15  cents  per  pound ;  bands,  20 
cents  per  pound,  instead  of  20  and  25  cents  as  at  present.  Cigar 
labels  and  flaps  printed  in  whole  or  in  part  of  metal  leaf,  30  cents  per 
pound,  instead  of  35  and  40  cents  as  at  present.  (See  also  paragraph 
1310,  Lithographic  products.) 

PARAGRAPH  1307. — WRITING,  LETTER,  AND  DRAWING  PAPER. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Henry  W.  Stokes,  representing  the  American  Paper  and  Pulp  Associa- 
tion. 

Mr.  W.  J.  Raybold,  representing  B.  D.  Rising  Paper  Co.,  and  the  Writing 
Paper  Manufacturers'  Association,  New  York  City. 

Hearings :  Pages  3871-3886. 

Witness :  Mr.  Henry  W.  Stokes,  representing  the  American  Paper 
and  Pulp  Association. 

Size  of  industry. — During  the  past  10  years  the  United  States  has 
become  the  leading  paper  manufacturing  country  in  the  world. 
The  maintenance  of  this  leadership  means  maintaining  in  an  effec- 
tive way  an  industry  whose  product  value  in  the  United  States  ex- 
ceeds annually  $1,000,000,000. 


432  DIGEST  OF   TARIFF   HEARINGS,   H.  R.    7456. 

There  are  818  paper  and  322  pulp  mills  in  the  United  States  whose 
1920  product  was  valued  at  about  $1,025,000,000.  The  capital  in- 
vested in  this  industry  is  probably  nearly  $1,000,000,000,  as  shown 
by  the  forthcoming  census  reports.  The  industry  requires  a  larger 
initial  investment  in  plant  and  machinery  than  any  other  with  an 
equal  value  of  product. 

In  1909  the  production  of  paper  in  the  United  States  mills  was 
4,216,708  tons.  In  1920  it  was  7,334,614  tons.  Paper  or  box  board 
led  with  a  tonnage  of  2,313,449.  Newsprint  was  second  with 
1,511,968  tons.  Others  in  order  are  as  follows: 

Book,  1,104,464  tons ;  wrapping,  1,403,812  tons ;  fine  papers,  389,322 
tons ;  felts  and  building,  366,941  tons ;  tissue,  177,447  tons. 

Book  paper  produced  in  1920  was  worth  $220,000,000. 

Board  was  valued  at  over  $200,000,000.  Newsprint  was  worth 
approximately  $150,000,000,  and  fine  paper,  though  far  less  in  ton- 
nage, approximately  the  same  value  as  newsprint. 

The  per  capita  production  in  all  grades  of  paper  is  as  follows: 
1899,  57  pounds;  1904,  75  pounds;  1909,  93  pounds;  1919,  118  pounds; 
1920,  138  pounds. 

Comparability. — The  difficulties  confronting  paper  manufacturers 
lie  in  the  competition  from  Scandinavian  and  German  manufacturers 
who,  with  the  advantages  of  depreciated  currency,  low  wage  condi- 
tions, and  low  standards  of  living,  are  able  to  make  paper  at  a  rate 
which  American  manufacturers  can  not  approach.  This  situation, 
coupled  with  low  freight  charges  from  Europe  to  this  country — it 
costs  less  to  ship  a  ton  of  paper  from  Europe  to  New  York  than  to 
ship  a  ton  of  paper  across  New  York  State — has  made  the  situation 
of  American  paper  manufacturers  precarious  in  the  extreme.  Their 
market  has  been  taken  from  them  by  European  competition,  in  spite 
of  the  fact  that  America  has  the  largest,  fastest,  and  generally  the 
most  modern  paper  machinery  in  the  world.  When  the  German 
workman,  for  instance,  is  employed  at  a  wage  equivalent  in  purchas- 
ing power  to  about  one-third  of  the  wage  paid  in  America,  the  situa- 
tion of  the  American  manufacturer  is  easily  realized.  The  manu- 
facturer feels  that  there  must  be  some  protection  against  competi- 
tion, based  upon  the  wide  divergence  in  wages  as  between  this  coun- 
try and  Europe.  The  question  of  depreciated  exchange  is  a  difficult 
one,  but  a  solution  should  be  worked  out  to  protect  American  in- 
dustries. 

Rates  suggested. — A  brief  filed  by  the  witness  enters  at  length  into 
the  need  of  protection  and  classifies  proposed  rates  in  a  statement 
covering  pages  3873-3876. 

Hearings :  Pages  3936-3937. 

Witness :  Mr.  W.  J.  Raybold,  representing  B.  D.  Rising  Paper  Co. 
and  the  Writing  Paper  Manufacturers'  Association. 

Rates  suggested. — The  rates  in  H.  R.  7456  are  entirely  satisfactory 
Paragraph  1307  to  be  changed  so  as  to  clarify  the  meaning  and  make 
it  more  adaptable  to  imported  paper. 

Remarks. — An  exhibit  sets  forth  a  petition  submitted  at  a  hearing 
before  the  Committee  on  Ways  and  Means  against  an  increase  of 
duty  on  china  clay  or  kaolin. "  At  the  same  hearing  representatives 
of  domestic  china  clay  producers  requested  an  increase  of  duty  to 
$6  per  ton.  Annexed  to  the  petition  are  letters  from  the  Exford 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.    7456.  433 

Paper  Co.,  S.  D.  Warren  Co.,  the  West  Virginia  Pulp  &  Paper  Co., 
producers  of  considerable  domestic  book  paper,  urging  that  the  duty 
be  not  increased;  also,  a  letter  from  Bird  &  Son,  East  Walpole, 
Mass.,  manufacturers  of  low-grade  paper,  to  the  effect  that  the  firm 
can  not  use  English  clay,  as  its  price,  compared  with  the  domestic, 
is  prohibitive.  Bird  &  Son  state  they  have  been  importing  clay  for 
over  30  years. 

A  brief  from  the  association  of  American  producers  (Tariff  In- 
formation, Series  No.  5,  1921)  states  that  there  is  no  substitute  for 
English  clay  in  the  better  classes  of  paper;  the  fact  that  American 
manufacturers  continue  to  pay  duty  for  the  English  clay  to  such  a 
large  extent  appears  to  confirm  this  statement.  The  price  of  English 
clay  is  given  in  the  exhibit  as  $14.65  per  ton  at  American  seaports. 
The  cost  of  the  higher  grades  runs  up  to  $20  per  ton,  based  on  par 
exchange  of  $4.86. 

The  comparative  prices  given  in  the  statistics  of  the  American 
clay  producers  do  not  take  into  account  that  English  clay  varies  in 
moisture  content  from  12  to  18  per  cent,  while  domestic  clay  varies 
from  3  to  8  per  cent,  a  difference  of  about  10  per  cent. 

The  American  clay  producers  recapitulate  the  bases  of  their  re- 
quest for  a  duty  of  $6  as  follows : 

Present  duty 1 $1.25 

Railroad  freight  advance  to  far  northern  points 2.  75- 

Minimum  figure  to  offset  the  ballast  ocean  freight  rate  on  foreign  clay  and 

the  determined  effort  to  drive  the  domestic  industry  out  of  business 2.  00 


Total  tariff  asked 6.00 

The  testimony  of  the  American  clay  producers  contains  many  ref- 
erences to  a  falling  off  of  60  per  cent  in  their  1921  business. 

There  are  approximately  10,000  men  employed  in  the  clay  industry, 
at  average  wages  running  "  all  the  way  from  $2.50  to  $10  per  day." 
The  cost  in  the  European  clay  industry  is  60  per  cent  under  that  of 
the  American. 

The  average  importation  of  china  clay  from  Europe  to  this  country 
for  the  years  1910  to  1919,  inclusive,  was  220,808  tons  per  annum. 

A  letter  from  Mr.  D.  C.  Morris,  purchasing  department,  Oxford 
Paper  Co.  (p.  3946),  states  that  if  the  duty  on  clay  were  increased 
to  $6  per  ton  his  company's  cost  of  manufacturing  paper  would  be  in- 
creased approximately  to  $125,000,  which  would  have  to  figure  in  the 
price  of  the  manufactured  product. 

Mr.  E.  L.  Young,  purchasing  agent,  S.  D.  Warren  Co.  (p.  3947), 
states  in  a  letter  that  his  company  must  use  English  clay  regardless 
of  price ;  should  the  duty  be  increased,  the  additional  expense  would 
have  to  be  passed  on  to  the  consumer. 

Mr.  Thomas  Luke,  vice  president,  West  Virginia  Pulp  &  Paper  Co. 
(p.  3947),  states  that  there  is  no  objection  to  rates  being  raised  on  an 
even  plane,  but  his  company  would  object  strenuously  to  a  material 
increase  in  the  duties  on  clay  if  nothing  were  done  for  the  producers 
of  paper.  The  company  uses  both  domestic  and  English  clay. 

Mr.  G.  M.  Graves,  purchasing  agent,  Bird  &  Son  (p.  3947),  says 
that  prices  of  English  clay  are  still  prohibitive  compared  to  the  do- 
mestic which  they  are  using. 


434  DIGEST   OF   TAEIFF    HEARINGS,,   H.  R.    74-56. 

Mr.  L.  W.  Bowmall,  secretary,  the  Association  of  American  Wood 
Pulp  Importers,  submitted  briefs  (see  pp.  3948  to  3950,  inclusive), 
in  which  the  paper-stock  and  pulp-wood  situation  as  relating  to  the 
paper  manufacturer  are  discussed. 

PARAGRAPHS  1309,  1313,  AND  1640. — BRISTOL  BOARD  AND  PRESSBOARD. 

WITNESS. 

FAVORING  LOWEB  DUTIES  : 

Mr.  John  T.  Wheelwright,  Boston,  Mass.     (Brief.) 

Hearings :  Pages  3945-3946. 

Remarks. — The  brief  maintains  that  an  increase  in  duties  on  the 
finished  products  of  the  paper  industry  is  not  as  important  as  the 
free  entry  or  reduction  of  duties  on  paper  stock,  pulp,  china,  clay, 
etc.,  articles  necessary  for  the  manufacture  of  paper.  The  bill  re- 
ported by  the  Ways  and  Means  Committee  this  year  has  augmented 
many  of  these  duties,  particularly  that  on  china  clay,  which  it  has 
raised  from  $1.25  to  $2.50  a  ton. 

It  is  of  vital  importance  to  New  England  manufacturers  that  the 
items  in  paragraph  1640  be  kept  free  of  duty. 

"Rag  pulp;  paper  stock,  crude,  of  every  description,  including 
all  grasses,  fibers,  rags,  waste,  including  jute,  hemp,  and  flax  waste, 
shavings,  clippings,  old  paper,  rope  ends,  waste  rope,  waste  bagging, 
and  all  other  waste,  not  specially  provided  for,  including  old  gunny 
cloth  and  old  gunny  bags,  used  chiefly  for  paper  making,  no  longer 
suitable  for  bags." 

Paper  made  from  this  stock  has  to  compete  with  paper  made  of 
wood  fiber  by  mills  close  to  coal  and  timber  lands;  any  appreciable 
advance  in  the  cost  of  pulp  made  from  this  stock  places  the  New 
England  manufacturer  at  a  great  disadvantage.  To  keep  the  indus- 
try in  New  England  it  is  necessary  for  the  manufacturers  not  to  be 
too  unduly  handicapped. 

As  to  china  clay,  the  particular  reason  why  a  duty  on  this  is  bur- 
densome is  that  the  American  clay  can  not  be  satisfactorily  used  in 
many  grades  of  paper.  The  brief  refers  to  a  supplemental  brief  of 
the  John  Richardson  Co.,  filed  with  the  Committee  on  Ways  and 
Means,  against  an  increase  of  duty  on  china  clay  or  kaolin. 

Touching  wood  pulp,  reference  is  made  to  a  pamphlet  marked  "  B  " 
in  re  Schedule  M,  paper  and  books,  paragraph  649  of  the  free  list, 
filed  by  the  Association  of  American  Wood  Pulp  Importers,  which 
contains  the  arguments  in  favor  of  keeping  such  pulp  upon  the  free 
list. 

The  brief  also  calls  attention  to  paragraph  1309,  in  which  "  bristpl 
board  of  the  kind  made  on  Fourdrinier  machines  "  is  given  a  certain 
rate  of  duty.  It  is  suggested  that  the  words  "  of  the  kind  made  on 
Fourdrinier  machines  "  be  omitted,  thus  putting  all  bristols  without 
any  doubt  upon  the  same  basis.  In  the  United  States  fine  bristol 
boards  are  made  on  Fourdrinier  machines,  but  mostly  on  cylinder 
machines,  and  the  boards  made  on  the  latter  are  similar  in  quality, 
texture,  and  use  to  those  made  on  the  Fourdrinier  machines  in  other 
countries.  It  seems  clear,  therefore,  that  foreign  bristols  made  on 
cylinder  machines  will  be  subject  to  the  same  rate  of  duty. 


DIGEST  OF   TARIFF   HEARINGS,  H.   R.   7456.  435 

PARAGRAPH  1309. — HANGING  PAPER. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Henry  Burn  and  Mr.  George  Tait,  representing  the  American  Wall 

Paper  Association. 
Hon.  J.  S.  Parker,  a  Representative  in  Congress  from  the  State  of  New 

York. 

Hearings :  Pages  3937-3941. 

Witness:  Mr.  Henry  Burn,  president,  representing  the  American 
Wall  Paper  Association. 

Comparability. — Increasing  competition  from  Germany  renders  it 
necessary  that  a  higher  rate  of  duty  be  granted. 

Rates  suggested. — A  rate  of  at  least  3  cents  per  pound  and  an  ad 
valorem  rate  of  20  per  cent,  A  previous  request  for  a  duty  of  25  per 
cent  ad  valorem  was  based  on  an  expected  25  per  cent  reduction  in 
wages,  which  has  not  materialized. 

Remarks. — The  association  represents  an  industry  which,  during 
the  war,  was  classified  as  nonessential  and  was  subjected  to  restric- 
tions of  the  severest  kind.  These  restrictions  not  only  made  the  busi- 
ness unprofitable,  but  it  would  have  been  annihilated  had  the  war 
continued  a  few  months  longer.  The  industry,  which  ought  now  to 
be  receiving  the  benefits  of  peace  time,  finds  itself  confronted  with 
many  difficulties  instead  of  receiving  the  full  benefits  and  protection 
that  the  Government  can  give. 

Hearings :  Pages  3941-3942. 

Witness :  Mr.  George  Tait. 

In  a  brief,  the  witness  states  that  there  is  possibly  no  other  manu- 
factured product  whose  first  cost  is  so  great  as  in  wall-paper  produc- 
tion— a  one-season  product.  The  brief  supports  the  American  valua- 
tion plan. 

Hearings :  Pages  3939-3940. 

Witness :  Hon.  James  S.  Parker,  a  Representative  in  Congress  from 
the  State  of  New  York. 

Cost  and  selling  prices. — American  wall  paper  is  quoted  to-day 
(December,  1921),  at  18  cents  per  roll,  while  similar  wall  paper  from 
Germany  is  being~laid  down  here  at  less  than  3  cents  per  roll. 

Size  of  industry. — The  American  wall-paper  industry  produces 
from  $25,000.000  to  $30,000,000  annually. 

Comparability. — The  greatest  competitors  in  the  wall-paper  in- 
dustry are  the  Germans,  who  enjoy  a  tremendous  advantage  in  cheap 
labor,  longer  working  hours,  and  abnormal,  favorable  rates  of  ex- 
change. These  advantages  could  very  easily  ruin  the  American  in- 
dustry by  capturing  the  American  market  unless  some  preventive 
measure  is  passed. 

Rates  suggested. — Briefs  presented  in  the  association's  interest 
favor  a  designation  by  itself  for  the  industry's  product  and  suggest 
that  it  be  made  to  read  as  follows : 

Hanging  paper,  not  printed,  lithographed,  dyed,  or  colored,  10  per  centum  ad 
valorem.  Paper  hangings,  printed,  lithographed,  dyed,  or  colored,  3  cents  per 
pound  and  20  per  centum  ad  valorem. 


436  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

Remarks. — There  is  probably  no  other  manufactured  product  whose 
first  cost  is  so  great  as  in  wall-paper  production;  it  is  a  one-season 
product,  requiring  a  brand  new  offering  each  year.  The  greater  part 
of  the  work  is  done  by  skilled  labor,  employed  on  a  50-week  basis, 
with  a  guaranty  of  45  full  weeks'  and  five  half-weeks'  pay,  whether 
the  plant  operates  full  time  or  not.  These  men  earn  on  straight 
time  wages  from  $43  to  $50  per  week  and  for  overtime  work  time 
and  one-half  pay.  The  wages  paid  even  in  prewar  years  were  from 
three  to  five  times  greater  than  those  paid  by  German  competitors. 
With  the  depreciated  German  mark  of  to-day  comparison  of  wages 
is  not  possible. 

PARAGRAPH  1309. — WRAPPING  PAPER. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   M.    E.   Marcuse,    representing   wrapping-paper   manufacturers,    Rich- 
mond, Va. 
Wrapping  Paper  Manufacturers.     (Brief.) 

Hearings :  Pages  3942-3943. 

Witness:  Mr.  M.  E.  Marcuse. 

Size  of  industry. — The  wrapping-paper  industry  represents  about 
154  manufacturers  who  turn  out  annually  about  1,403,000  tons  of 
wrapping  paper.  They  employ  about  35,000  people,  and  have  a  capi- 
tal of  over  $140,000,000. 

Comparability. — There  is  a  large  importation  of  wrapping  paper, 
and  American  manufacturers  fear  that  the  Kraft  paper  made  in 
Scandinavia,  Finland,  and  in  Germany  will  come  in.  Importations 
from  Canada  are  negligible. 

Rates  suggested. — The  rate  to  be  raised  from  23  to  30  per  cent  ad 
valorem. 

Remarks. — Wrapping  paper  is  made  chiefly  out  of  wood. 

Witness:  Wrapping  Paper  Manufacturers.  (Brief;  no  appear- 
ance at  hearings.) 

Rates  suggested. — The  brief  requests  an  increase  in  duty  from 
the  23  per  cent  ad  valorem  proposed  in  H.  R.  7456  to  30  per  cent. 

In  the  past  the  price  of  imported  wrapping  paper  c.  i.  f.  Atlantic 
ports  has  ranged  from  65  to  TO  per  cent  of  the  market  price  of 
similar  American  papers,  but  it  is  now  being  freely  offered  c.  i.  f. 
New  York  at  56  per  cent  of  that  price.  The  rate  of  30  per  cent  now 
asked  for  would  therefore  still  leave  a  margin  in  favor  of  foreign 
manufacturers,  this  being  regarded  as  a  temporary  condition. 

Foreign  Kraft  paper  is  being  freely  offered  for  $67  per  ton,  the 
American  price  being  $120,  so  that,  even  with  a  30  per  cent  duty,  the 
foreigner  would  still  have  an  advantage  of  $17  per  ton.  Kraft  is 
the  standard  wrapping  paper  of  this  country. 

PARAGRAPH  1310. — BOOKS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Charles  E.  Graham,  representing  himself  and  11  other  concerns. 
Mr.   F.  J.  Belaire,   representing  the  International   Brotherhood  of  Book- 
binders, Washington,  D.  C. 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.   745C.  437 

FAVORING  PROPOSED  OR  HIGHER  DUTIES — Continued. 

Mr.  Edward  F.  McGrady,  representing  American  Federation  of  Labor, 
Washington,  D.  C. 

Mr.  Daniel  S.  Brassil,  representing  employing  bookbinders  of  America, 
Xe\v  York,  N.  Y. 

Mr.  Alfred  E.  Omrnen,  representing  the  United  Typotlietse  of  America. 

Mr.  Maurice  Saunders,  representing  Lithographers  Employers'  Association, 

New  York,  X.  Y. 
FAVORIXG  LOWER  DUTIES  : 

Mr.  Herman  Tapke,  representing  Fred  Pustet  Co.  (Inc.)  and  other  im- 
porters, Brooklyn,  N.  Y. 

Mr.  John  Macrae,  representing  National  Association  of  Book  Publishers, 
the  E.  P.  Dutton  Co.,  and  the  American  Bookbinders'  Association,  New 
York,  N.  Y. 

Mr.  M.  L.  Raney,  Johns  Hopkins  Hospital,  representing  40  educational  in- 
stitutions ;  and  himself,  as  importer. 

Dr.  A.  S.  W.  Rosenbach,  representing  the  Free  Library  of  Philadelphia 

and  book  trade  of  the  United  States,  Philadelphia,  Pa. 
•    The  Charles  E.  Lauriat  Co.,  Boston,  Mass.     (Brief.) 

The  American  Library  Association,  Chicago,  111.      (Brief.) 

The  Trustees  of  the  New  York  Public  Library.     (Brief.) 

The  Krauth  Memorial  Library.     (Brief.) 

Mr.  Charles  F.  Amidon,  Fargo,  N.  Dak.     (Brief.) 

The  Board  of  Trade  of  the  American  Booksellers'  Association.     (Brief.) 

Hearings :  Pages  3951-3953. 

Witness:  Mr.  Charles  E.  Graham,  representing  himself  and  11 
other  concerns. 

Rates  suggested. — A  clause  in  paragraph  1310  reads :  "  Books  of 
paper  or  other  material  for  children's  use,  printed  lithographically 
or  otherwise,  not  exceeding  in  weight  24  ounces  each,  with  more  read- 
ing matter  than  letters,  numerals,  or  descriptive  words,  20  per  centum 
ad  valorem."  It  is  pointed  out  that  this  clause  covers  nearly  all  toy 
books,  and  leaves  the  toy  paragraph  1414,  in  which  toy  books  are 
placed  by  being  taken  from  the  lithographic  schedule,  practically  in- 
operative, so  far  as  toy  books  are  concerned.  The  interests  repre- 
sented ask,  therefore,  for  the  entire  elimination  of  the  above  clause 
from  paragraph  1310,  and  the  rewriting  of  the  toy-book  clause  in 
toy  paragraph  1414,  as  requested  by  the  Toy  Manufacturers'  Associa- 
tion. Paragraph  1414,  as  it  now  stands  and  changed  as  suggested, 
will  be  found  on  page  3953. 

Hearings :  Page  3965. 

Witness:  Mr.  Felix  J.  Belaire,  representing  the  International 
Brotherhood  of  Bookbinders. 

Rates  suggested. — The  members  of  the  brotherhood  feel  that  the 
inadequate  tariff  on  imported  bound  books  places  them  at  a  disad- 
vantage, as  wages  are  much  lower  in  foreign  countries  than  in 
America.  They  ask  that  this  be  taken  into  consideration,  especially 
as  these  books  are  given  the  foreign  and  not  the  American  valuation. 
A  brief  submitted  covers  points  at  greater  length. 

Hearings:  Page  3965. 

Witness :  Mr.  Edward  F.  McGrady,  representing  the  American 
Federation  of  Labor. 

Rates  suggested. — Referring  to  the  duty  on  imported  books,  the 
witness  states  that  a  duty  should  be  placed  upon  all  binding  and, 
in  the  case  of  old  books,  upon  the  bindings  rather  than  upon  the 
books  themselves.  The  federation  is  in  favor  of  American  valua- 
tion, based  upon  the  wholesale  selling  price  in  America. 
77134—22 29 


438  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Hearings :  Pages  3966-3968. 

Witness :  Mr.  Daniel  S.  Brassil,  representing  employing  book- 
binders of  America. 

Size  of  industry. — In  1920,  Bensinger,  in  New  York,  printed  and 
bound  5,000  copies  of  a  Catholic  missal,  which  was  very  satisfactory. 

Comparability. — American  publishers  send  books  abroad  to  be 
bound,  at  a  cost  of  $1.25  per  volume,  instead  of  paying  $1.95  in 
America,  this  difference  being  due  to  labor.  The  books  are  then 
returned  to  America,  to  be  sold  at  a  lower  price  than  those  bound 
here.  Some  New  York  booksellers  have  men  in  England  scouring 
the  country  for  books  over  20  years  old.  These  books  they  have 
bound  and  then  send  them  to  America  duty  free,  as  they  are  more 
than  20  years  old. 

Rates  suggested. — The  rate  to  be  as  stated  in  the  bill :  35  per  cent 
or,  if  possible,  increased  to  50  per  cent  to  cover  extra  binding.  The 
binding  can  be  done  as  well  in  America  as  in  foreign  countries,  but 
must  have  protection  to  prevent  the  work  from  being  sent  abroad. 
Protection  is  desired  on  religious  and  educational  as  well  as  on 
ordinary  books.  It  is  suggested  that  the  wording  in  regard  to  old 
books  be  changed  to  read  "  books  printed  and  bound  more  than  20 
years." 

Hearings :  Pages  3968-3970. 

Witness:  Mr.  Alfred  E.  Ommen,  general  counsel  for  the  United 
Typothetae  of  America. 

Size  of  industry. — Speaking  for  the  employing  printers  of  America, 
the  witness  stated  that  almost  500,000  persons  are  employed  in  the 
industry,  producing  about  $1,000,000,000  annually. 

Comparability. — While  employees  receive  good  wages,  in  a  well- 
established  industry,  they  have  to  compete  with  much  lower  wages 
and  longer  hours  abroad.  The  witness  referred  to  the  thousands  of 
books  not  made  at  all  in  this  country,  it  being  so  much  cheaper  to 
send  the  plates  to  the  other  side  and  have  them  printed  and  bound. 
Official  figures  of  weekly  time  rates  in  27  towns  in  Great  Britain,  in 
December,  1920,  for  hand  compositors,  book  and  jobbing  work,  show 
$17.40  as  against  $50  in  New  York  City.  In  France,  in  a  number  of 
cities,  bookbinders  receive  from  35  cents  to  $1.53  a  day,  based  on 
current  exchange. 

Rates  suggested. — The  association  adheres  to  its  former  request  for 
a  duty  of  50  per  cent  ad  valorem. 

Hearings:  Pages  3917-3929. 

Witness :  Mr.  Maurice  Saunders,  representing  Lithographic  Em- 
ployers' Association. 

Rates  suggested. — Double  the  rates  provided  in  the  Fordney  bill 
to  all  items  in  paragraph  1310.  Even  that  will  not  completely 
equalize  the  German  advantage  over  domestic;  the  association  does 
not  expect  any  advantage. 

Remarks. — A  brief  filed  by  the  witness  (pp.  3925-3929)  discusses 
the  proposed  rates  in  comparison  with  those  under  the  act  of  1909. 
The  interest  represented  by  the  witness  is  also  referred  to  under 
paragraph  1306. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  439 

Hearings :  Pages  3953-3958. 

Witness :  Mr.  Herman  Tapke,  representing  the  Fred  Pustet  Co. 

Cost  and  selling  prices. — Religious  books  used  in  Roman  Catholic 
churches  and  other  Catholic  institutions,  are  imported  annually  from 
foreign  countries  as  follows :  Prayer  books,  $50,000 ;  religious  educa- 
tional books  used  by  students  for  the  priesthood,  $100,000;  books 
used  on  the  altar  during  religious  ceremonies,  $200,000;  books  of 
religious  character  used  by  the  priesthood  and  laity,  $50,000,  making 
an  approximate  annual  total  in  excess  of  $400,000. 

Size  of  industry. — As  there  are  no  publishers  of  Roman  Catholic 
religious  books  in  America,  there  is  no  competition. 

Rates  suggested. — The  present  duty  upon  the  books  enumerated 
ranges  from  20  to  33^  per  cent,  depending  upon  the  binding.  The 
witness  requests  that  these  books  be 'provided  for  under  the  proposed 
paragraph  1520,  amended  to  read  as  follows: 

Bibles,  comprising  the  books  of  the  Old  and  the  New  Testament,  or  both, 
bound  or  unbound ;  books  and  pamphlets,  bound  or  unbound,  printed  wholly  or 
chiefly  in  languages  other  than  English,  that  are  used  or  intended  to  be  used 
in  connection  with  religious  ceremonies  or  in  association  with  religious  festi- 
vals either  by  the  clergy  or  by  the  laity  or  that  are  used  or  intended  to  be 
used  by  the  clergy  or  in  religious  educational  institutions. 

Hearings :  Pages  3958-3963. 

Witness :  Mr.  John  Macrae,  representing  the  National  Association 
of  Book  Publishers,  E.  P.  Dutton  &  Co.,  and  The  American  Book- 
sellers' Association. 

Rates  suggested. — The  duty  on  books  to  be  made  as  low  as  possible. 
This  duty  should  not,  under  any  circumstances,  exceed  25  per  cent 
ad  valorem  on  books  printed  in  English,  and  Congress  should  assess 
the  dutiable  value  of  imported  books  from  England  at  15  per  cent  ad 
valorem.  It  is  urged  that  all  books  in  foreign  languages,  and  books 
20  years  of  age  and  over,  be  placed  on  the  free  list.  These  books  do 
not  compete  with  American  manufactures  and  are  mainly  used  for 
educational  purposes. 

The  publishers  of  the  United  States  wish  to  have  a  clause  under 
which  the  duty  to  be  paid  on  imported  books  will  be  levied  on  the 
price  paid  by  the  American  publisher  to  the  publisher  in  England. 
Trade  conditions  prevailing  in  England  are  practically  the  same  as 
in  the  United  States. 

Hearings:  Pages  4398-4401  (schedule  15,  free  list.) 

Witness :  Mr.  M.  L.  Rahey,  Librarian  of  Johns  Hopkins  Hospitaly 
Baltimore,  Md.,  representing  40  educational  institutions. 

Rates  suggested. — Educational  books,  and  books  over  20  years  old, 
to  be  placed  on  the  free  list. 

The  rate  in  the  existing  tariff  measure  is  15  per  cent  on  such  books  as 
are  dutiable.  In  H.  R.  7456  it  is  proposed  to  raise  this  to  20  per  cent. 
In  the  tariff  act  of  1842  the  rate  was  based  on  size,  value,  weight,  etc. 
So  far  as  the  ad  valorem  duty  was  then  fixed  it  corresponds  with  the* 
20  per  cent  in  the  present  bill.  All  foreign  language  books,  and  all 
books  as  old  as  20  years,  should  be  placed  upon  the  free  list.  The 
various  suggested  amendments  to  the  paragraphs  under  discussion 
will  be  found  on  page  3994. 

Educational  institutions  and  libraries  are  concerned  because  of 
the  proposal  that  their  textbooks  shall  be  made  dutiable.  If  these 


440  DIGEST  OF   TARIFF    HEARINGS,   II.  R.    7450. 

are  placed  upon  the  dutiable  list  the  charge  will  either  be  borne  by 
the  student  himself,  or  by  the  institution  which  imports  them.  An- 
other reason  for  this  objection  is  that  American  producers  are  using 
the  present  tariff  as  an  excuse  for  abnormal  increases  in  their  prices. 

Hearings :  Pages  3963-3964. 

Witness :  Dr.  A.  S.  W.  Rosenbach,  representing  himself  as  an  im- 
porter ;  also,  the  Free  Library  of  Philadelphia,  the  American  Library 
Association,  and  the  rare-book  trade  of  America. 

Rates  suggested. — The  items  enumerated  in  paragraph  1310  to  be 

E laced  on  the  free  list,  which  should  also  include  books  in  foreign 
mguages,  books  over  20  years  old,  and  other  educational  books. 
To  place  a  duty  on  books  over  20  years  old  would  be  a  serious 
hindrance  to  those  contemplating  the  establishment  of  libraries,  so 
necessary  to  any  country.     If  it  is  desired  to  protect  American 
binders,  a  proviso  could  be  inserted  carrying  a  duty  on  books  the 
binding  of  which  was  executed  within  a  period  of  20  years,  but  the 
duty  should  be  on  the  binding  and  not  on  the  books. 

Hearings:  Pages  3946-3950. 

Witness:  The  Charles  E.  Lauriat  Co.,  Boston,  Mass.     (Brief.) 

As  a  dealer  in  both  American  and  English  published  books,  having 
an  established  business  of  50  years'  standing,  the  company  protests 
against  the  clause  in  paragraph  1310,  applying  to  books  bound  wholly 
or  in  part  in  leather.  The  company  regards  the  proposed  duty  of 
33|  per  cent  ad  valorem  as  unnecessarily  high.  Wages  in  English 
binderies  have  advanced  over  200  per  cent  above  prewar  level — a 
statement  verified  by  figures  and  enforced  by  quotations  for  foreign 
binding. 

The  company  regards  the  American  valuation  plan  as  impractical, 
even  impossible,  as  applied  to  books. 

Attention  is  devoted  to  the  proposed  imposition  of  a  duty  on 
books  more  than  20  years  old  and  to  the  similar  burden  on  books 
and  pamphlets'  in  foreign  languages.  Both  of  these  proposals  are 
deprecated  by  the  company. 

Witness :  The  American  Library  Association,  Chicago,  111.  (Brief ; 
no  appearance  at  hearings.) 

The  brief  is  a  protest  against  the  proposed  increase  in  duties,  and 
limitations  of  privileges,  in  regard  to  books. 

The  changes  proposed  are  prejudicial  to  libraries,  which  must  ex- 
pect a  sharp  advance  in  the  price  of  all  foreign  books,  as  was  shown 
by  the  present  duty  of  15  per  cent  on  recent  English  books,  raising 
the  price  in  some  cases  to  more  than  double  the  price  in  England. 
The  duty  would  also  discourage  the  buying  up  of  European  stocks 
when  especially  favorable  opportunities  offer,  and  libraries  would 
have  to  pay  duty  on  all  copies  of  a  book  beyond  two.  The  provision 
in  regard  to  affidavits  will  entail  an  enormous  additional  amount  of 
clerical  work.  Stress  is  also  laid  upon  the  potential  hindrance  to 
research  work,  and  the  association  is  unable  to  see  any  gain  in  im- 
peding the  entry  of  a  family  of  such  character  as  to  own  a  library 
exceeding  $250  in  value. 

The  necessary  textual  changes  are  incorporated  in  the  brief. 

Witness:  The  trustees  of  the  New  York  Public  Library.  (Brief; 
no  appearance  at  hearings.) 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  441 

Remarks.— The  executive  committee  presents,  in  the  form  of  a 
printed  leaflet,  the  minutes  and  resolutions  adopted  by  the  trustees 
at  a  meeting  on  January  11,  1922.  These  protest  against  the  provi- 
sions of  H.  R.  7456,  increasing  the  duty  now  levied  on  books  and 
other  printed  matter  imported  into  the  United  States  and  removing 
from  the  free  list  certain  classes  of  books  now  included  therein. 

The  trustees  regard  the  proposed  changes  as  constituting  a  tax  on 
knowledge  and  education,  and  a  serious  burden  upon  institutions 
such  as  their  own.  Details  of  the  changes  desired  to  give  effect  to 
the  policy  favored  by  the  trustees  are  given. 

Witness :  The  Krauth  Memorial  Library,  Philadelphia,  Pa.  (Brief ; 
no  appearance  at  hearings.) 

Rev.  Luther  D.  Reed,  director,  is  unable  to  see  any  particular  pur- 
pose in  imposing  a  duty  on  books  in  foreign  languages.  The  libraries 
of  universities,  colleges,  and  scientific  institutions  would  be  put  to 
considerable  trouble  and  expense  by  the  affidavit  provisions  of  this 
paragraph. 

Witness:  Mr.  Charles  F.  Amidon,  Fargo,  N.  Dak.  (Brief;  no  ap- 
pearance at  hearings.) 

The  writer  objects  to  the  proposed  duty  of  20  per  cent  on  all 
foreign-language  books  and  on  books  in  English  20  years  or  more  old. 
"  If  there  is  anything  we  need  it  is  knowledge.  Let  us  not  put  a  tax 
on  it." 

Witness:  The  Board  of  Trade  of  the  American  Booksellers'  Asso- 
ciation. (Brief:  no  appearance  at  hearings.) 

In  support  of  a  protest  against  the  proposed  imposition  of  a  duty 
on  books  the  brief  covers  a  reprint  of  an  article  from  The  Bookseller 
and  Stationer,  August  1,  1921.  written  by  Mr.  Charles  E.  Buller, 
chairman  of  the  above-named  board.  The  writer  regards  the  pro- 
posed duty  as  "  a  step  fraught  with  many  serious  possibilities."  Books 
differ  from  every  other  article  of  merchandise  in  being  the  great 
educational  medium  and  uplift  throughout  the  land.  While  the 
literary  production  of  this  country  is  good,  that  of  Europe  is  equally 
if  not  more  so.  and  its  books  are  read  by  Americans.  Foreign- 
language  books  should  be  admitted  free  of  duty. 

PARAGRAPH  1310. — GREETING  CARDS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Chas.  J.  West,  representing  greeting-card  manufacturers. 
The  Keating  Co..  Philadelphia,  Pa.     (Brief.) 
The  Campbell  Art  Co..  Elizabeth.  N.  J.     (Brief.) 

Hearings :  Pages  3970-3971. 

Witness:  Mr.  Charles  J.  West. 

Hates  suggested. — The  wording  of  paragraph  1310  to  be  changed. 
After  the  words  "  booklets,  wholly  or  in  chief  value  of  paper,  deco- 
rated in  whole  or  in  part  by  hand  or  by  spraying,  whether  or  not 
printed  "  add  "  not  specially  provided  for,"  15  cents  per  pound.  The 
last  sentence  in  the  paragraph  to  be  changed  from  "  Christmas  and 
other  greeting  cards,  printed  lithographically  or  otherwise,  or  deco- 
rated in  whole  or  in  part  by  hand  or  by  spraying.  30  per  centum 
ad  valorem."  to  read  "  greeting  cards  arid  all  other  social  and  gift 


442  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

cards,  including  those  in  the  form  of  folders  and  booklets,  wholly 
or  partly  manufactured,  with  or  without  text  or  greeting,  60  per 
centum  ad  valorem." 

Witness :  The  Keating  Co.,  engravers  and  stationers,  Philadelphia, 
Pa.  (Brief;  no  appearance  at  hearing.) 

Rates  suggested. — The  brief  directs  attention  to  the  danger,  under 
the  provisions  of  H.  R.  7456,  of  greeting  cards  in  the  form  of  booklets 
or  folders  being  charged  a  duty  of  7  cents  per  pound.  The  company 
does  not  believe  it  to  be  the  intent  of  the  bill  to  admit  such  foreign 
products  at  this  low  rate.  There  may  have  been  some  confusion  be- 
tween this  class  of  goods  and  advertising  booklets  and  small  toy  books, 
to  avoid  which  the  following  wording  of  the  close  of  paragraph  1310 
is  suggested : 

Cards,  folders,  and  booklets  intended  for  social  use.  including  post  cards,  not 
specially  provided  for,  printed,  lithographically  or  otherwise,  or  decorated 
in  whole  or  in  part  by  harrtl  coloring  or  spraying,  30  per  centum  ad  valorem. 

In  another  communication  the  company  desires  protection  for 
such  cards  as  place,  tally,  and  birth  announcements.  In  the  absence  of 
suggested  textual  changes  these  would  come  under  paragraph  1306 — 
duty  levied  according  to  weights — and  practically  no  protection  would 
be  given. 

Witness:  The  Campbell  Art  Co.,  Elizabeth,  N.  J.  (Brief;  no  ap- 
pearance at  hearings.) 

Mr.  Charles  J.  West,  vice  president  of  the  company,  in  behalf  of 
the  greeting  card  manufacturers,  suggests  that  the  wording  of  the 
paragraph  be  changed.  As  it  now  stands  cards  in  the  form  of  booklets 
and  folders  would  be  subject  to  a  duty  of  either  7  or  15  cents  per  pound 
instead  of  30  per  cent  ad  valorem.  The  original  and  the  proposed 
amended  construction  of  paragraph  1310  are  appended  in  parallel 
columns. 

Unless  some  such  change  is  made  foreign  competitors  will  see  to  it 
that  all  their  creations  are  manufactured  in  the  form  of  booklets. 

PARAGRAPH  1313. — Box  BOARD. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.   Charles   R.   White,   representing   manufacturers  of  box   boards   and 
paper  boards,  Washington,  D.  C. 

Hearings :  Pages  3888-3892. 

Costs  and  selling  prices. — It  costs  $9.50  to  deliver  a  ton  of  box 
board  from  Illinois  or  Wisconsin  to  the  New  York  market.  With  pres- 
ent freight  rates  from  Hamburg,  Germany,  Netherlands,  or  Belgium, 
it  can  be  delivered  at  the  eastern  seaport  for  $6  per  ton,  thus  show- 
ing an  advantage  to  the  foreigner  of  $3.50  on  freight  rates  alone. 
The  present  wholesale  price  of  box  board  in  America  ranges  from 
$32.50  to  $80  per  ton.  For  two  years,  up  to  October,  1920;  the  price 
was  as  much  as  $100  per  ton. 

Size  of  industry. — About  2,000,000  tons  of  box  board  is  produced 
in  America  annually.  There  are  about  150,000  persons  employed 
in  the  industry. 

Rates  suggested. — A  specific  duty  of  1  cent  per  pound  to  prevent 
ambiguity  in  case  American  valuation  is  adopted. 

Remarks. — About  50,000  tons  of  box  board  were  imported  in  1920 
from  Canada,  the  Netherlands,  and  Belgium,  chiefly  from  Canada, 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  443 

where  paper  board  is  made  largely  as  a  by-product,  and  delivered  to 
Boston  or  Xew  York  at  a  much  lower  rate  than  domestic  manufac- 
turers have  to  pay.  Canada  has  the  forests — the  raw  material — and 
with  the  lower  freight  rates  has  the  advantage  over  the  domestic 
trade.  Protection  must  therefore  be  obtained  for  the  American 
industry. 

PARAGRAPH  1313. — FLOXG,  A  PAPER  MATRIX  OR  DRY  MAT. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Benjamin  Wood,  representing  Wood  Flong  Corporation,  New  York  City. 
FAVORING  LOWER  DITTIES  : 

Mr.  Jason  Rogers,  publisher  of  the  York  Globe.     (Brief.) 

Hearings :  Page  3971. 

Witness:  Mr.  Benjamin  Wood. 

Costs  and  selling  prices. — The  selling  price  of  dry  mats  to  news- 
papers is  20  cents  per  mat,  or  sheet,  and  with  the  present  cost  of 
labor  and  materials  it  has  been  difficult  to  maintain  this  price.  *  The 
Germans  are  offering  as  low  as  8  cents  each  in  order  to  undermine 
the  American  industry.  The  statement  has  been  made  that  opera- 
tives in  the  German  mills  are  being  paid  the  equivalent  of  2  cents 
per  hour,  while  the  American  workman  is  paid  at  the  rate  of  66  cents 
per  hour. 

Size  of  industry. — This  brand  new  industry  was  created  as  a 
result  of  the  war.  Thus  far  there  is  only  one  company  manufac- 
turing in  New  York. 

Rates  suggested. — A  specific  duty  of  26  cents  per  pound,  the  specific 
being  preferred  to  ad  valorem  for  the  reason  that  there  is  mostly 
one  grade  and  one  size  used  by  newspapers.  The  bill  gives  28  per 
cent  ad  valorem,  based  on  American  valuation.  This  is  not  sufficient 
to  protect  the  industry,  and  a  duty  of  26  cents  per  pound  is  abso- 
lutely necessary  to  enable  the  American  industry  to  survive. 

The  words  "  stereotype  matrix,  mat  or  board,  28  per  cent  ad 
valorem"  should  be  eliminated,  and  in  their  place  substitute  the 
following :  "  Flongs,  known  by  the  printing  trade  as  '  dry  mats ' 
or  prepared  sheets  of  molding  material  to  be  used  for  the  purpose 
of  making  printing  plates,  26  cents  per  pound." 

Remarks. — The  industry  was  formerly  exclusively  owned  and  con- 
trolled by  the  Germans  and  is  a  German  chemical  invention  covering 
what  is  known  as  "  flong,"  a  paper  matrix  used  in  making  matrices 
for  casting  plates  by  the  stereotype  process  used  in  newspaper  offices 
and  printing  plants.  The  corporation  was  unable  to  discover  the 
German  method  of  manufacture  of  matrix  paper  until  after  expend- 
ing a  large  sum  of  money.  Having  done  so,  it  is  now  confronted 
with  a  competition  which  the  industry  in  its  extreme  youth  can  not 
face.  The  Germans  have  come  back,  and  finding  only  one  com- 
petitor are  endeavoring  to  regain  the  market  by  underselling  at 
such  figures  as  to  make  the  domestic  industry  impossible  without 
protection.  A  brief  submitted  by  the  witness  is  printed  in  full  on 
page  3973. 


444  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   1456. 

Witness:  Mr.  Jason  Rogers,  publisher  of  the  New  York  Globe. 
(Brief;  no  appearance  at  hearings.) 

Mr.  Rogers  protests  against  any  such  duty  on  dry  mats  as  that  sug- 
gested above  by  Mr.  Benjamin" Wood.  The  proposed  duty  of  26 
cents  per  pound  would  mean  approximately  13  cents  per  mat.  or 
between  80  and  120  per  cent  on  the  cost  of  manufacture.  Such  a 
duty  would  act  prohibitively  and  encourage  domestic  manufac- 
turers to  take  advantage  of  the  artificial  monopoly  they  would  enjoy. 

Copies  of  controversial  matter  dealing  with  this  topic  are  covered 
by  the  brief. 

PARAGRAPH  1313. — WALL  POCKETS. 
WITNESS,  AND  INTEREST  RFPKESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Charles  A.  Hamilton,  representing  the  Buffalo  Art  Manufacturing  Co. 

Hearings :  Pages  3978-3981. 

Costs  and  selling  prices, — The  companv  has  reduced  the  prices 
on  the  largest  wall  pockets  from  $99  to  $75  per  1.000.  Prices  for. 
the  season  of  1923  are  $44,  $58,  and  $75.  The  average  cost  of  the 
pockets  at  the  factory  is :  Small  size,  $41 :  medium,  $53 :  large,  $68. 
Labor  costs  represent  for  small  size.  $28 :  medium.  $33 ;  and  large,  $39. 

Size  of  industry. — To-day  only  one  domestic  concern  is  manufac- 
turing wall  pockets.  It  employs  about  100,  mostly  girls  who  are  ex- 
perts, and  the  wages  paid  are  from  $16  to  $40  a  week.  Owing  to 
German  competition,  the  output  to-day  (December.  1921)  is  about 
250,000,  as  compared  with  1.000.000  last  year.  This  concern  has  in- 
vested about  $100,000  in  the  business. 

Comparability. — Owing  to  the  enormous  importation  of  wall 
pockets  from  Germany,  one  American  company  has  been  compelled 
to  go  out  of  business  entirely  and  the  other  has  recently  been  com- 
pelled to  reduce  its  production  from  30  different  designs  to  7. 

Rates  suggested. — A  specific  duty  of  15  cents  per  pound,  instead  of 
26  per  cent  ad  valorem  as  proposed  in  the  bill ;  it  will  be  impossible, 
otherwise,  to  continue  this  little  industry. 

Remarks. — A  list  of  prices  of  by-products  used  in  the  industry  is 
given  on  page  3979.  Wall  pockets  are  made  principally  from  a 
coarse  paper  which  is  a  by-product  of  tobacco  manufactories.  Its 
base  is  the  tobacco  stems  which  are  thrown  out  in  the  manufacture 
of  smoking  material  The  price  of  this  has  gone  down,  but  the  prices 
of  the  essential  aniline  dyes  have  gone  up. 

PARAGRAPH  1313. — PAPER  TUBES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frederick  L.  Chase,  representing  F.  A.  Chatee  &  Co.,  Providence,  R.  I., 

and  the  American  Paper  Tube  Co.,  of  Woonsocket,  R.  I. 
The  American  Paper  Tube  Co.,  Providence,  R.  I.     (Brief.) 

Hearings :  Pages  3981-3982. 
Witness :  Mr.  F.  L.  Chase. 

Rates  suggested. — The  interests  represented  ask  for  the  insertion 
of  a  clause  providing  for  a  duty  of  5  cents  per  pound  and  35  per 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  445 

cent  ad  valorem  on  paper  tubes,  tapered  or  parallel.  The  object  is 
to  take  this  product  out  of  the  basket  clause,  paragraph  1313.  As 
matters  stand,  the  paper  from  which  these  tubes  are  made  carries 
the  same  duty  as  the  finished  tubes — 26  per  cent  ad  valorem — yield- 
ing- no  margin  of  protection  for  the  labor  and  manufacture  of  the 
tubes. 

Witness :  The  American  Paper  Tube  Co.,  Providence,  R.  I.  (Brief ; 
no  appearance  at  hearings.) 

Rates  suggested. — In  view  of  the  high  development  attained  in  the 
manufacture  of  paper  tube  products  in  foreign  countries,  notably 
German,  Belgium,  France,  and  Italy,  and  having  regard  to  their 
advantages  in  present-day  costs,  the  company  asks  for  a  duty  of  8 
cents  per  pound  and  35  per  cent  ad  valorem  on  paper  tubes,  tapered 
or  parallel. 

Remarks. — During  the  war,  a  great  majority  of  the  silk,  woolen, 
cotton,  and  worsted  spinners  were  entirely  dependent  on  the  output 
of  the  paper  tube  makers  of  the  United  States  to  run  their  plants. 

SCHEDULE  14. — SUNDRIES. 
PARAGRAPH  1401. — ASBESTOS  MANUFACTURES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Henry  Paul  Barnes,  representing  American  manufacturers  of  asbestos 
materials. 

FAVORING   LOWER   DUTIES  : 

Mr.  Forest  Bramble,  representing  the  American  Asbestos  Dealers'  Associa- 
tion, Baltimore,  Md. 

Mr.  W.  E.  Steelman,  representing  W.  E.  Steelman  Co.,  Wilkes-Barre,  Pa. 

Mr.  Ed.  Nicholson,  representing  Raybestos  Co.,  Bridgeport,  Conn. 

Mr.  W.  C.  Dodge,  jr.,  representing  the  Argus  Asbestos  Co.  (Inc.),  Port 
Chester,  N.  Y. 

Hearings :  Pages  3893-3991. 

Witness :  Mr.  Harry  Paul  Barnes,  representing  American  manu- 
facturers of  asbestos  materials. 

Costs  and  selling  prices. — Costs  of  asbestos  manufactures  vary 
greatly.  The  value  of  asbestos  entering  into  these  products  ranges 
from  1  cent  per  pound  to  $1.50  per  pound,  and  the  value  of  the  fin- 
ished materials  ranges  from  1^  cents  per  pound  to  $10  and  upward 
per  pound.  Cost  of  production  is  about  55  per  cent  material  and  45 
per  cent  labor  and  overhead. 

Size  of  industry.— Total  value  of  production,  $100,000,000;  em- 
ployees, 30,000  to  50,000.  The  industry  is  comparatively  new,  having 
developed  in  the  past  20  years. 

Comparability. — Weekly  wages  for  unskilled  labor:  In  Germany, 
150  marks  (about  $1.50)  ;  in  England,  25  shillings  (about  $6)  ;  in  the 
United  States,  $20.  For  carders,  spinners,  and  other  skilled  workers : 
The  German  worker  receives  200  marks  (about  $2)  ;  the  English 
weaver,  55  shillings  (about  $13)  ;  and  the  American  worker  of  the 
same  class,  from  $30  to  $40  per  week,  taking  present  exchange  value 
in  each  conversion. 

American  workmen  will  not  work  with  certain  cheap  grades  of 
asbestos  fiber,  as  they  are  detrimental  to  health,  but  they  are  used 


446  DIGEST  OF   TARIFF   HEARIXGS,   H.  R.   7456. 

and  worked  by  Europeans.  Foreign  manufacturers  could  furnish 
sufficient  quantities  for  the  requirements  of  this  country.  Imports 
have  not  been  large,  as  the  requirements  are  not  heavy  at  present, 
but  such  orders  or  inquiries  as  appear  upon  the  market  are  immedi- 
ately seized  by  importers  at  prices  far  below  the  American  manu- 
facturer's cost.  Mr.  Barnes  filed  with  his  testimony  an  article  from 
a  German  publication,  the  Gummi-Zeitung,  relating  to  the  expansion 
of  the  German  asbestos  industry. 

Rates  suggested. — The  proposed  rates  are  not  considered  suffi- 
ciently high,  and  increases  are  requested  to  conform  to  the  rates 
contained  in  a  bill  introduced  in  the  House  of  Representatives  by 
the  Hon.  Henry  Watson,  of  Pennsylvania,  as  follows: 

Dutiable  list. — Asbestos  paper  and  millboard  and  articles  manufactured 
therefrom,  not  otherwise  provided  for  in  this  section,  5  cents  per  pound; 
asbestos  paper  and  millboard,  manufactured  from  long-fiber  asbestos  for 
gaskets,  etc.,  electrical  papers  not  exceeding  0.005  of  an  inch  in  thickness  or 
articles  manufactured  therefrom,  10  cents  per  pound. 

Articles  composed  of  asbestos  and  hydraulic  cement,  in  sheets  or  plates  not 
exceeding  one-eighth  of  an  inch  in  thickness,  li  cents  per  square  foot ;  more 
than  one-eighth  of  an  inch  but  not  exceeding  one-fourth  of  an  inch  in  thick- 
ness, 2£  cents  per  square  foot ;  more  than  one-fourth  but  not  exceeding  one-half 
of  an  inch  in  thickness,  5  cents  per  square  foot. 

Sheets  that  are  corrugated  or  otherwise  differing  from  flat  sheets,  6  cents 
per  square  foot  or  fraction  thereof;  colored  sheets  containing  an  admixture  of 
matter  other  than  asbestos  and  hydraulic  cement,  50  per  cent  ad  valorem  in 
addition  to  the  above  rates. 

Asbestos  wick  and  rope,  or  articles  manufactured  therefrom,  35  cents  per 
pound. 

Asbestos  woven-sheet  packing,  in  rolls,  exceeding  one  thirty-second  and  not 
exceeding  one-eighth  of  an  inch  in  thickness,  or  articles  manufactured  there- 
from, 50  cents  per  pound. 

Asbestos  gaskets  folded  or  cut  from  the  straight  sheet,  rubberized,  graphited, 
or  otherwise  treated  with  waterproofing  or  lubricating  compound  or  com- 
pounds, or  articles  manufactured  therefrom,  65  cents  per  pound. 

Asbestos  yarn  containing  more  than  10  per  cent  of  foreign  matter  other  than 
asbestos,  or  articles  manufactured  therefrom,  50  cents  per  pound ;  asbestos 
yarns  and  listings  exceeding  0.025  of  an  inch  in  thickness,  containing  less 
than  10  per  cent  of  foreign  matter,  and  cloths,  tapes,  cords,  or  other  articles 
manufactured  therefrom,  $1.75  per  pound;  not  exceeding  0.025  of  an  inch  in 
thickness,  $2.50  per  pound. 

Asbestos  mantle  threads,  with  or  without  wire,  treated  or  untreated,  $2.50 
per  pound. 

Asbestos  textile  fabrics,  containing  10  per  cent  and  not  more  than  20  per 
cent  of  foreign  matter  other  than  asbestos,  75  cents  per  pound;  containing 
more  than  20  per  cent  of  foreign  matter  other  than  asbestos,  50  cents  per  pound. 

All  other  manufactures  of  asbestos  and  articles  or  manufactures  of  which 
asbestos  is  the  component  material  of  chief  value,  not  specially  provided  for 
in  this  section,  40  per  cent  ad  valorem. 

Remarks. — Mr.  Barnes  cited  a  quotation  received  from  an  English 
manufacturer  for  asbestos  yarn,  containing  less  than  10  per  cent 
cotton,  of  3s.  3d.  per  pound,  or  approximately  75  cents.  The  cost 
of  labor  in  this  country  on  this  class  of  yarn  exceeds  this  selling 
price,  and  its  total  cost  is  approximately  $2.50  per  pound. 

With  reference  to  the  brief  filed  by  the  American  Asbestos  Deal- 
ers' Association  (represented  by  Mr.  Bramble),  the  witness  stated 
that  those  companies  considered  the  question  only  from  the  view- 
point of  imports  of  shingles  from  Canada.  Shingles  are  imported 
from  Europe,  chiefly  Belgium  at  present,  but  they  will  be  imported 
largely  from  Belgium  and  Germany. 


DIGEST  OF   TARIFF    HEARINGS,   H.    R.    7456.  447 

The  thickness  clause  in  the  proposed  rates  should  not  be  changed. 
The  majority  of  shingles  do  not  exceed  one-eighth  inch  in  thickness. 
Ordinary  shingles  are  one-eighth  inch  in  thickness. 

The  increased  duty  on  colored  shingles  is  necessary  to  protect  the 
American  manufacturer  from  German  shingles.  Imports  from 
Canada  are  chiefly  of  gray  shingles,  but  because  of  the  dye  industry 
Germans  are  able  to  manufacture  colored  shingles  much  more 
cheaply,  the  coloring  material  comprising  about  60  per  cent  of  the 
cost. 

Seventy-five  per  cent  of  exports  went  to  Cuba,  the  remainder  to 
South  America.  It  is  impossible  for  an  American  manufacture^  to 
export  his  products  to  a  country  manufacturing  asbestos  products. 
The  reverse  is  not  true.  Imports  have  been  made  into  the  United 
States  from  England,  Germany,  Italy,  France,  and  other  countries 
where  asbestos  materials  are  produced. 

Were  the  shingles  assessed  on  the  square  of  surface  covered  it 
would  be  possible  to  bring  in  sufficient  shingles  as  one  square  to  cover 
two  squares.  A  monopoly  on  this  class  of  goods  would  not  result 
from  increased  rates,  as  there  are  at  least  five  companies  producing 
them  at  the  present  time  and,  as  the  patent  for  manufacturing  as- 
bestos shingles  has  expired,  there  is  no  doubt  that  in  a  short  time 
additional  companies  will  be  manufacturing  them. 

Hearings :  Pages  3996-4004. 

Witness :  Mr.  Forrest  Bramble,  representing  the  American  Asbes- 
tos Dealers'  Association. 

Costs  and  selling  prices. — The  witness  attached  to  his  brief  the 
following  table,  showing  prices  at  factory  of  imported  manufactures 
of  asbestos: 


448 


.DIGEST   OF   TARIFF    HEARINGS,   H.  R.    7456. 


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fibers. 
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Woven  sheel  packing 
Gaskets 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.   7456.  449 

Size  of  industry. — The  value  of  the  domestic  production  in  1920 
was  about  $100,000.000;  value  of  imports,  $451,851. 

Rates  suggested. — The  association  which  the  witness  represents  is 
opposed  to  the  proposed  tariff  from  the  several  viewpoints  of  in- 
creased rates,  the  duty  being  specific,  colored  sheets  or  plates  being 
dutiable  at  a  higher  specific  than  uncolored,  and  different  rates  for 
different  sizes.  Retention  of  the  present  duty  of  10  per  cent  ad 
valorem  is  advocated,  but  a  50  per  cent  increase  over  this  (15  per  cent 
ad  valorem)  would  be  satisfactory,  and  would  afford  ample  protec- 
tion to  domestic  manufacturers. 

Remarks. — The  witness  is  chiefly  interested  in  asbestos  shingles, 
sheets  and  plates  of  asbestos,  and  hydraulic  cement.  He  contends 
that,  under  the  proposed  duties,  the  percentage  of  increase  on  the 
selling  price  ranges  from  100  to  830  per  cent,  or  from  20  to  93  per 
cent  ad  valorem. 

With  regard  to  the  proposed  different  rates  for  sheets  or  plates  not 
exceeding  one-eighth  inch  in  thickness  and  those  in  excess  of  one- 
eighth,  it  is  stated  that  shingles  ranging  from  one-eighth  to  three- 
sixteenths  inch  in  thickness  are  sold  for  the  same  price  to  the  dealer 
and  the  consumer,  and  are  used  for  the  same  purposes.  It  is  not  prac- 
ticable to  manufacture  the  shingles  in  any  appreciable  quantities  uni- 
formly one-eighth  inch  thick. 

With  regard  to  the  duty  being  specific,  the  witness  states  that  the 
proposed  rates  would  necessitate  the  measuring  by  customs  officials 
of  every  imported  shingle  to  detect  the  difference  in  size  between  one- 
eighth  and  three-sixteenths  inch.  The  rate  is  based  on  the  square  of 
shingles,  but  should  be  based  on  the  square  of  surface  covered,  cor- 
responding to  the  trade  unit.  This  is  100  square  feet  of  roof,  which 
takes  155  square  feet  of  shingles. 

He  also  contends  that,  under  the  proposed  rates,  a  monopoly  would 
be  established  in  manufactured  sheets  and  plates  of  asbestos  and 
hydraulic  cement,  largely  in  the  control  of  two  companies;  that  the 
dealers  in  these  articles  would  be  eliminated  from  competition,  and 
that  the  revenue  from  this  source  would  be  wiped  out,  as  the  pro- 
posed duties  would  be  prohibitive. 

Hearings:  Pages  4005-4009. 

Witness:  Mr.  W.  E.  Steelman,  representing  W.  E.  Steelman  Co., 
importers  of  asbestos  shingles  and  flat  sheets. 

Rates  suggested. — A  flat  ad  valorem  rate  of  15  per  cent  on  foreign 
valuation. 

Remarks. — The  witness  testified  in  collaboration  with  the  preced- 
ing witness,  Mr.  Bramble.  He  repeated  that  it  would  be  necessary, 
under  the  proposed  tariff,  to  measure  all  shingles  imported  to  de- 
termine their  thickness,  and  that  shingles  one-eighth  and  five  thirty- 
seconds  of  an  inch  thick  sell  for  the  same  price.  The  shingles  are 
sold  on  the  one-sixteenth  of  an  inch  basis  and  are  supposed  to 
measure  up  to  one-sixteenth  inch  of  the  basis  on  which  sold,  any 
smaller  difference  being  due  to  the  failure  of  the  machinery  to  make 
them  exact. 

He  contends  that  under  the  American  valuation  plan  he  would 
probably  have  to  pay  duty  on  a  fictitious  American  valu'e.  For  ex- 


45C  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    74-56. 

ample,  lie  states,  his  competitors  have  a  marketing  plan  by  which  they 
establish  what  is  known  as  a  "  five-car  buyer/'  Such  buyer  is  given 
a  discount  off  the  list  of  33^  per  cent,  but  when  he  has  purchased  five 
carloads  of  material  they  rebate  him  the  difference  between  33^  per 
cent  off  and  40  per  cent  off.  After  he  has  once  purchased  five  car- 
loads he  remains  a  five-car  buyer  at  40  per  cent  off  the  list,  although 
the  sale  goes  through  on  the  books  of  the  company  at  33£  per  cent  off. 

Hearings :  Page  4009-4011. 

Witness :  Mr.  Ed.  Nicholson,  representing  Raybestos  Co. 

Rates  suggested. — Retention  of  present  rate  of  20  per  cent  ad 
valorem. 

Remarks. — Mr.  Nicholson  stated  that  the  Raybestos  Co.  manufac- 
tures automobile-brake  lining,  using  the  yarn  provided  for  in  the 
tariff  classification  covering  yarn  containing  more  than  10  per  cent 
of  foreign  matter  other  than  asbestos. 

Owing  to  the  inability  of  domestic  mills  to  meet  the  demand  for 
this  yarn  in  1919  the  Raybestos  Co.  entered  into  a  contract  with  an 
English  company  for  2,000,000  pounds  of  yarn,  400,000  pounds  of 
which  have  been  delivered,  leaving  a  balance  of  1,600,000  to  be  de- 
livered, which  they  are  under  obligation  to  receive.  Conditions  of 
domestic  manufacturers  are  now  changed,  the  yarn  can  be  manufac- 
tured here  as  cheaply  as  in  England,  demands  can  be  met,  and  the 
yarn  would  cost  the  Raybestos  Co.  less  here  than  they  could  import 
it  for.  They,  however,  are  bound  by  the  contract. 

The  duty  on  this  1,600,000  pounds  under  the  present  rate  would 
be  approximately  $161,200;  under  the  proposed  rate  it  would  be 
$512,000,  an  increase  of  $350,800.  In  order  to  save  to  the  company 
this  extra  duty,  they  request  that  the  rate  of  duty  be  not  changed, 
but  retained  at  20  per  cent  ad  valorem.  The  witness  states  that  20 
per  cent  is  actually  a  prohibitive  duty,  and  that  at  the  present  time 
no  imports,  as  far  as  can  be  ascertained,  are  being  made  of  this  yarn 
except  by  the  Raybesto  Co.  under  their  contract.  They  would,  there- 
fore, be  the  only  one  affected  by  a  change  of  rate. 

Hearings :  Pages  3992-3995,  4011-4012. 

Witness:  Mr.  W.  C.  Dodge,  jr.,  representing  the  Argus  Asbestos 
Co.  (Inc.). 

Costs  and  selling  prices. — The  price  of  asbestos  listing  (exhibit)  is 
about  90  cents  a  pound.  The  present  cost  of  the  imported  article 
from  England  is  60  cents ;  adding  20  per  cent  duty  brings  this  up  to 
72  cents,  leaving  a  fair  margin,  25  per  cent,  to  meet  American  com- 
petition. The  labor  cost  in  the  finished  product  is  from  10  to  20 
per  cent. 

Size  of  industry. — Imports  of  asbestos  products  (in  textiles)  have 
always  been  under  1  per  cent  of  the  amount  of  business  done  in  this 
country.  Exports  have  been  seven  times  more  goods  in  value  than 
are  imported. 

Rates  suggested. — On  textiles,  20  per  cent  on  American  valuation 
would  be  acceptable ;  specific  duties  to  be  eliminated. 

Remarks. — The  question  is  largely  one  of  labor,  as  everyone  pays 
the  same  price  for  asbestos,  which  comes  principally  from  Canada. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  451 

PARAGRAPH   1402. — GOLF  BALLS. 

WITNESSES. 
FAVORING  LOWEB  DUTIES  : 

Holrnac  (Inc.),  County  Golf  Co.,  Samuel  Buckley  &  Co.,  Alexander  McLeod, 
and  the  Dunlop  Tire  &  Rubber  Corporation  of  America,  as  importers  of 
English-made  golf  balls.  (Joint  brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — At  the  present  time  American  manu- 
factures of  golf  balls  have  established  a  retail  price  at  75  cents 
apiece,  or  $9  a  dozen.  The  balls  are  sold  by  the  American  manufac- 
turers, either  direct  to  the  golf  professionals  or  through  jobbers  and 
distributors,  at  prices  varying  from  $5.25  to  $5.85  per  dozen.  These 
are  the  highest  grade  of  American  manufactured  balls. 

At  the  present  time  the  best  imported  English  golf  balls  are  re- 
tailing to  the  players  at  $1  apiece,  or  $12  a  dozen.  Importers  are 
selling  the  balls,  in  most  instances,  to  the  distributors  at  an  average 
price  of  $7.40  per  dozen,  and  the  distributors  are  selling  to  the  pro- 
fessionals at  $8.50  to  $9.15  per  dozen. 

The  imported  English  golf  ball  of  the  best  grade  is  sold  in  Eng- 
land to  the  golf  professional  for  approximately  25  shillings  a  dozen. 
They  are  sold  to  Amercian  importers  at  a  slightly  lower  figure — 
an  average  of  approximately  24  shillings  per  dozen. 

Expenses  and  profit  of  importer  per  dozen  of  best-grade  golf  balls. 

Price  paid  manufactures . a$5. 06 

Freight,  marine  insurance,  etc .19 

Duty   (10  per  cent) .53 

Selling  costs '. 1.  25 

Total  cost 7. 03 

Selling  price 7.  40 


Profit , .  37 

If  the  30  per  cent  rate  should  come  into  effect,  the  importer  will 
pay  as  duty  at  least  $1.59  per  dozen  instead  of  53  cents.  This  will 
increase  the  landed  cost  of  a  golf  ball  to  such  an  extent  that  it  can 
not  be  retailed  at  $1,  and  if  the  price  is  increased  above  $1  it  will 
be  impossible  for  the  imported  ball  to  compete  with  the  75-cent 
standard  domestic  ball. 

Size  of  industry. — It  is  estimated  that  there  are  at  the  present 
time  2,500  private  golf  clubs  in  this  country  and  that  each  club  has 
an  average  membership  of  at  least  400,  thus  making  the  total  num- 
ber of  golf  players  in  the  United  States  in  excess  of  1,000,000. 

The  estimated  market  in  America  for  golf  balls  is  1,000,000  dozen 
per  year.  Of  this  number,  the  total  importations  do  not  reach  a  maxi- 
mum of  150,000  dozen  a  year,  or  less  than  15  per  cent  of  the  total 
number  of  balls  sold. 

Rates  suggested. — The  importers  most  earnestly  object  to  the  in- 
crease of  the  rate  of  duty  from  10  per  cent,  as  it  now  stands,  to  30 
per  cent,  as  proposed  in  the  Fordney  bill.  The  rate  of  duty  is  in- 
creased 200  per  cent,  and  the  American  valuation  feature  will  fur- 
ther increase  the  actual  duty  in  dollars  and  cents. 

1  Exchange  at  $4.22,  Dec.  28,  1921. 


452  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPH  1403. — BEADS. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  David  J.  Gallert,  representing  novelty  jewelers,  New  York  City. 

Hearings :  Pages  4013-4023. 

Comparability. — The  hollow  or  wax-filled  pearl  beads  are  not  made 
in  the  United  States.  The  hollow  bead  is  the  cheaper  and  to  a  cer- 
tain extent  would  displace  the  solid  bead,  which  is  made  in  the 
United  States. 

Rates  suggested. — The  request  was  made  that  no  specific  duty  be 
added,  as  it  would  bear  heavily  on  the  cheaper  grades  of  beads.  The 
specific  duty  requested  by  the  American  manufacturers  would 
amount  to  some  10,000  per  cent  on  foreign  valuation.  The  duty  of 
25  per  cent  in  the  House  bill  does  raise  the  duty,  and  that,  while  cur- 
tailing the  business,  would  not  seriously  hamper  it. 

A  duty  of  40  per  cent  on  pearl  beads  would  be  equivalent  to  160 
per  cent  on  foreign  valuation,  which,  if  imposed,  would  prevent  their 
importation. 

It  was  requested  that  a  separate  classification  be  made  for  the  solid 
or  indestructible  pearl  beads  and  that  the  rate  be  25  per  cent  on 
American  valuation,  the  equivalent  of  60  per  cent  on  foreign  valu- 
ation. 

The  rate  on  hollow  or  wax-filled  beads  should  be  allowed  to  stand 
as  in  the  present  tariff — that  is,  at  35  per  cent. 

PARAGRAPH  1405. — FELT  SLIPPERS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Walter  A  Sweet,  representing  the  National  Association  of  Felt  Sl'pper 
Manufacturers. 

Hearings:  Page  4028. 

Size  of  the  industry. — The  members  of  the  association  employ 
4,824  workers  and  have  an  average  annual  output  of  approximately 
$23,983,238.  The  association  is  comprised  of  27  concerns  which 
manufacture  probably  more  than  50  per  cent  of  the  goods  in  this  line. 

Rates  suggested. — Would  be  satisfied  with  25  per  cent  ad  valorem, 
based  on  American  valuation,  as  provided  for  in  the  bill. 

PARAGRAPH  1406. — STRAW  HATS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES: 

Mr.  Edward  W.  Bill,  representing  Bill  &  Caldwell,  importers,  New  York 

City. 
The  National  Association  of  Men's  Straw  Hat  Manufacturers.      (Brief.) 

Hearings :  Pages  4028-4031. 

Witness :  Mr.  Edward  W.  Bill. 

Size  of  the  industry. — The  production  of  men's  and  women's  straw 
hats  in  the  United  States  is  shown  below : 

Value  of  product:                                                                                   ._  $31,  920,  000 
1914~  25,444,000 

1909 ::  :::::_.:::: 21,424,255 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 


453 


The  total  value  of  blocked  or  trimmed  straw  hats  imported  in  1919 
was  $707,163. 

Rates  suggested. — That  the  rate  on  men's  trimmed  and  sewed  hats 
be  no  higher  than  40  per  cent  based  on  foreign  valuation. 

Remarks. — The  witness  states  that  statistics  of  imports  include  cer- 
tain bodies  which  are  taken  by  domestic  manufacturers  and  after 
being  manipulated  and  trimmed  are  turned  out  as  part  of  their 
product.  Taking  this  into  consideration,  and  allowing  only  for  the 
trimmed  and  sewed  straw  hats  which  are  imported,  it  will  be  seen 
that  such  imports  are  but  a  small  factor  compared  with  the  amount 
manufactured  in  the  United  States. 

Witness:  The  National  Association  of  Men's  Straw  Hat  Manu- 
facturers of  America.  (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — German  manufacturers  are  offering 
straw  hats  for  sale  in  this  country  at  prices  which,  under  the  present 
tariff,  permit  the  delivery  of  the  merchandise,  duty  paid,  at  fully  40 
per  cent  below  present  prices  of  American-made  hats  of  similar 
value.  The  cost  of  raw  materials  in  the  United  States  is  increased 
by  the  fact  that  all  of  the  important  materials  are  subject  to  duties 
ranging  from  15  to  60  per  cent  under  the  present  tariff.  With  the 
exception  of  straw  braids,  American  materials  are  chiefly  used,  and 
these  must  carry  the  cost  of  protection  to  American  labor  in  their 
production. 

The  following  data  on  wages  in  England  were  taken  from  the 
December  15,  1921,  issue  of  the  Hatters'  Gazette,  London: 

Male  workers  employed  in  the  straw-hat  branch  of  the  trade  who  have  had 
not  less  than  five  years'  experience  after  the  age  of  19  and  are  employed  in 
stiffening  straws  and  all  classes  of  goods  or  in  blocking  straws,  hats,  or  shapes 
covered  by  hand  or  machine,  now  paid  Is.  7d.  per  hour — reduction  proposed  to 
Is.  and  5d.  per  hour. 

Male  workers  between  18  and  19  years  of  age,  now  paid  7$  pence  per  hour — 
proposed  reduction  to  6$  pence  per  hour. 

All  female  workers  other  than  home  workers  now  paid  9$  pence  per  hour — 
proposed  reduction  to  8J  pence  per  hour. 

The  following  is  a  comparison  of  earnings  of  American  and  Eng- 
lish workers : 


England. 

United  States. 

Present 
wages,  48 
hours  per 
week 
(exchange 
at  $4). 

Proposed 
reduced 
wages,  48 
hours  per 

(exchange 
at  $4). 

Union 
scale,  44 
hours  per 
week. 

Country 
factories 
48  hours 
per  week. 

Skilled  male  workers  

$15.20 
6.00 
7.60 
2.40 

$13.60 
5.20 
6.80 
2.00 

$45.00 
21.00 
30.00 
(l) 

$36.00 
16.50 
24.00 
0) 

Under  15  years  of  age  

i  Child  labor  forbidden  by  law. 

Samples  of  foreign  and  domestic  made  hats,  showing  selling 
prices,  have  been  submitted  to  Mr.  J.  B.  Reynolds,  who  is  conduct- 
ing an  investigation  for  the  Treasury  Department. 

Two  Italian  fancy  braid  hats,  bought  in  the  open  market  in  New  York  for 
$12.96  and  $15.48  per  dozen.  The  same  hats  made  in  the  United  States  could 

77134—22 30 


454  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

not  be  sold  for  less  than  $27  and  $25.50  per  dozen.  An  Italian  flat-foot  sennit 
hat,  bought  in  the  open  market  in  New  York  for  $17.40  per  dozen,  could  not 
be  produced  in  the  United  States  to  sell  for  less  than  $27  per  dozen. 

Copies  of  two  letters  received  by  a  domestic  manufacturer  from 
retailers  are  attached  to  the  brief.  These  state  that  the  same  kind 
of  hats  offered  by  the  domestic  manufacturer  at  $36  per  dozen  are 
offered  by  an  importer  of  Italian  hats  at  $22.50  per  dozen,  duty 
paid. 

Rates  suggested. — The  association  favors  the  foreign  valuation 
plan  for  such  materials  and  merchandise  as  are  not  produced  in 
this  country  and  the  American  valuation  plan  for  products  with 
which  manufacturers  of  the  United  States  must  compete. 

The  association  also  suggests  that  the  words  "women's  and  chil- 
dren's "  should  be  inserted  after  the  word  "  men's,"  as  women's  and 
children's  sewed  hats  should  carry  the  same  rate  as  men's. 

The  association  recommends  the  elimination  of  the  provision  re- 
lating to  "  harvest "  hats,  as  the  classification  would  be  difficult  to 
establish  and  would  complicate  the  interpretation  and  administra- 
tion of  the  entire  paragraph.  The  preference  in  duty  is  so  slight 
that  the  association  considers  it  does  not  serve  any  good  purpose. 

Braids,  etc.,  composed  wholly  or  in  chief  value  of  straw,  etc.,  suitable  for 
making  or  ornamenting  hats,  bonnets,  or  hoods,  not  bleached,  dyed,  colored  or 
stained,  15  per  cent,  foreign  valuation ;  bleached,  dyed,  colored  or  stained,  20 
per  cent,  foreign  valuation. 

Hats,  bonnets,  and  hoods  composed  wholly  or  in  chief  value  of  any  of  the 
foregoing  materials,  whether  wholly  or  partly  manufactured,  but  not  blocked 
or  trimmed,  25  per  cent,  foreign  valuation ;  blocked  or  trimmed,  40  per  cent, 
foreign  valuation. 

All  other  men's,  women's,  and  children's  hats,  composed  wholly  or  in  chief 
value  of  any  of  the  foregoing  materials,  whether  wholly  or  partly  manufac- 
tured, either  not  blocked  or  blocked,  not  trimmed  or  trimmed ;  if  sewed,  40  per 
cent,  domestic  valuation,  or  65  per  cent,  foreign  valuation. 

Remarks. — Reference  is  made  to  the  brief  filed  with  the  Ways 
and  Means  Committee  for  details  of  the  industry.  (Tariff  Informa- 
tion, 1921,  hearings  before  the  Committee  on  Ways  and  Means, 
Schedule  N,  Sundries,  February  9,  1921,  No.  30,  pp.  "3056-3078.) 

In  1908  foreign  competition  was  almost  entirely  from  England. 
In  1913  Italian  competition  had  grown  considerably  in  volume,  while 
in  recent  years  Japan  has  begun  to  manufacture  straw  hats  in  con- 
siderable quantities. 

PARAGRAPH  1407. — BRUSHES. 
WITNESSES,  AND  INTERESTS  BEPBESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  John  Morrison,  jr.,  representing  the  American  Brush  Manufacturers' 

Association. 

The  American  Brush  Manufacturers'  Association.     (Brief.) 
Mr.  George  A.  Fernley,  representing  the  American  Brush  Manufacturers' 

Association. 
Holgate  Bros.  Co.,  Kane,  Pa.     (Brief.) 

FAVOBING  LOWEB  DUTIES:  » 

Mr.  W.  B.  Gibson,  representing  the  Brush  Importers'  Association. 
Dr.  Thaddeus  P.  Hyatt,  chairman  Oral  Hygiene  Committee  of  Greater  New 
York  and  in  charge  of  dental  department,  Metropolitan  Life  Insurance  Co. 
The  Williams  Brush  Co.,  Philadelphia,  Pa.     (Brief.) 
The  Horner-Kensil  Co.,  Philadelphia,  Pa.  (Brief.) 
Charles  L.  Huiskiug  (Inc.),  New  York  City.     (Brief.) 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  455 

Hearings :  Pages  4034-4042. 

Witness:  Mr.  John  Morrison,  jr.,  representing  the  American  Brush 
Manufacturers'  Association. 

Costs  and  selling  prices. — A  brief  submitted  by  the  witness  states 
that  foreign-made  brushes  are  produced  at  a  labor  cost  of  30  cents 
per  day. 

Size  of  the  industry. — The  brief  gives  these  figures  (Japan)  : 

Employees. 

1906,  213  factories  or  workshops 3,118 

1918,  777  factories  or  workshops 6,811 

Since  1914  the  artists'  brushes  and  hair  pencil  business  has  been 
developed  in,  the  United  States. 

Rates  suggested. —  (Based  on  foreign  valuation.)  Toilet  brushes, 
including  tooth,  hair,  nail  or  hand,  shaving,  bath,  and  complexion, 
60  per  cent :  paint  and  varnish  brushes,  50  per  cent ;  hair  pencils, 
artists'  hair  and  bristle  brushes,  and  all  other  soft-hair  brushes,  60 
per  cent :  household  and  all  other  brushes,  50  per  cent. 

'•  It  has  been  demonstrated  that  a  duty  of  35  or  40  per  cent  does 
not  stem  the  increasing  flood/' 

Remark*. —  (See  brief  filed  with  Ways  and  Means  Committee, 
schedule  X,  par.  336.)  Bristles  and  some  fancy  woods  are  imported; 
all  other  materials  are  produced  in  the  United  States. 

Hearings :  Pages  4036-4042. 

Witness :  The  American  Brush  Manufacturers'  Association. 
(Brief.) 

Costs  and  selling  prices. — Wages  in  Japan :  Girls  drawing  bristles, 
punching,  and  cementing  in  their  homes,  80  sen  per  day,  14  hours; 
men  supervisors,  1  yen  per  day ;  bone  cutters,  men.  75  to  80  sen  per 
day ;  bristle  refiners.  1  yen  to  1.50  yen  per  day.  Brush  factory  in 
*  Tokyo :  Average  daily  wage  of  a  man  is  1.50  to  3  yen ;  average  daily 
wage  of  a  woman  is  45  to  75  sen — working  day,  10  hours. 

NOTE. — One  yen  (divided  into  100  sen)  is  worth  practically  50  cents. 

Size  of  the  industry. — Toilet  brushes :  There  are  few  toilet-brush 
manufacturers  in  the  United  States  and  these,  aside  from  four  or  five 
concerns,  are  small  in  size  and  production.  Twelve  million  tooth- 
brushes are  manufactured  annually  in  the  United  States,  and  it  is 
estimated  that  the  annual  consumption  of  toothbrushes  in  the  United 
States  exceeds  40.000.000.  Only  two  toothbrush  makers  of  any  im- 
portance in  the  United  States,  both  making  specialty  brushes. 

Paint  and  varnish  brushes :  Fifteen  million  dollars  invested ;  8,000 
or  9.000  employees;  $30,000,000  estimated  as  the  annual  business 
volume. 

Comparability. — Toilet  brushes :  Larger  firms  make  specialty  goods 
which  do  not  come  in  competition  with  foreign-made  goods  to  any 
great  extent,  whereas  the  smaller  manufacturers  are  absolutely  un- 
able to  compete  with  Japanese-made  goods. 

Rates  suggested — (Based  on  foreign  valuation). — Toilet  brushes, 
60  per  cent;  paint  and  varnish  brushes,  50  per  cent;  artists'  hair  and 
bristle  brushes  and  all  other  soft  hairbrushes,  60  per  cent ;  household 
and  all  other  brushes,  50  per  cent. 


456  DIGEST   OF   TARIFF    HEARINGS,   H.   B.   7456. 

Hearings :  Pages  4046-4049. 

Witness :  Mr.  George  A.  Fernley,  representing  the  American  Brush 
Manufacturers'  Association. 

Costs  and  selling  prices. — Prophylactic  toothbrushes  retail  for  from 
30  to  35  cents  (cut-rate  stores?),  prewar,  25  cents;  Japanese  brushes 
range  in  price  from  $4  and  $5  to  $7  and  $8  per  gross ;  rubberset  tooth- 
brushes retail  at  50  cents. 

Size  of  the  industry. — There  is  only  one  really  large  American 
manufacturer  of  toothbrushes.  Domestic  output  of  toilet  brushes 
from  60  factories,  at  wholesale,  is  about  $10,000,000  a  year.  In  1912 
there  were  four  or  five  American  factories  making  toothbrushes. 

Comparability. — Japanese  toothbrushes  are  wire  drawn.  In  the 
prophylactic  toothbrush  the  tufts  are  separately  fastened  in  the 
handle  by  staples. 

Rates  suggested. — Sixty  per  cent  on  foreign  valuation  or  the  equiva- 
lent on  American  valuation  (toilet  brushes). 

Witness:  Holgate  Bros.  Co.,  Kane,  Pa.  (Brief;  no  appearance 
at  hearings.) 

Remarks. — This  concern  manufactures  brush  handles  and  favors 
a  higher  duty  on  brushes  for  the  reason  that  if  the  brush  industry 
is  not  adequately  protected  it  will  affect  the  brush  handle  factories. 

Hearings :  Pages  4032-4034. 

Witness :  Mr.  W.  B.  Gibson,  of  G.  R.  Gibson  Co.,  representing  the 
Brush  Importers'  Association. 

The  cost  of  production  in  foreign  countries  has  so  greatly  increased 
that  a  rate  of  25  per  cent  on  brushes  generally  will  afford  more  pro- 
tection to  American  manufacturers  than  the  rate  of  35  per  cent  for- 
merly afforded. 

Prior  to  1914  the  highly  advertised  trade-marked  toothbrushes 
produced  by  the  two  companies  in  the  United  States  retailed  for  25  • 
and  35  cents.  Except  in  "  cut-price  "  stores  in  the  larger  cities  it  is 
impossible  to-day  to  buy  an  American  toothbrush  for  less  than  50 
cents.  The  introduction  of  labor-saving  machinery  has  apparently 
more  than  offset  the  advantage  of  the  cheaper  and  inferior  labor 
abroad. 

The  domestic  producer  pays  a  duty  of  about  7  cents  per  pound  of 
sorted  bristles,  whereas  the  importer  pays  35  per  cent  on  the  bristle 
in  the  brush. 

A  good  toothbrush  would  sell  at  wholesale  in  the  United  States  for 
about  $3  a  dozen.  This  is  the  article  in  which  the  firm  is  chiefly 
interested. 

Size  of  industi*y. — The  brush  industry  in  this  country  has  pros- 
pered and  enjoyed  a  constant  growth.  The  number  of  establishments 
increased  from  146  in  1849  to  359  in  1914,  and  products  increased  in 
value  from  $1.574,000  to  $17,894,000. 

Comparability. — Importations  are  almost  exclusively  toilet  brushes, 
practically  confined  to  toothbrushes.  The  great  bulk  of  toothbrushes 
imported  *is  of  the  low-priced  grades. 

Kates  suggested. — If  the  American-valuation  basis  is  adopted,  the 
duty  on  tooth  and  toilet  brushes  should  be  made  25  per  cent. 

0>n  the  ground  of  public  policy  it  might  be  urged  that  toothbrushes 
be  placed  on  the  free  list. 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.    7456.  457 

It  is  recommended  that  the  duty  on  toilet  brushes,  including  tooth- 
brushes, be  reduced  from  35  to  25 "per  cent  ad  valorem. 

Remarks. — Copies  of  letters  addressed  to  the  chairman  of  the  Com- 
mittee on  Ways  and  Means  from  F.  W.  Wool  worth  Co.,  McCrory 
Stores  Corporation,  and  the  American  Wholesale  Corporation  (Balti- 
more Bargain  House)  are  attached  to  the  brief  from  which  the  above 
is  partly  abstracted.  These  letters  protest  against  any  increase  in 
the  tariff  on  toothbrushes. 

Remarks. — It  is  claimed  that  toothbrushes  made  of  celluloid  would 
be  dutiable  under  paragraph  29  of  H.  R.  7456  at  65  cents  a  pound 
and  25  per  cent  ad  valorem  as  a  result  of  that  paragraph  providing 
that  all  articles  composed  chiefly  of  celluloid  be  dutiable  under  that 
paragraph,  whether  or  not  more  specifically  mentioned  elsewhere. 

Hearings :  Pages  4043-4046. 

Witness:  Dr.  Thaddeus  P.  Hyatt,  chairman  Oral  Hygiene  Com- 
mittee of  Greater  New  York,  and  in  charge  of  dental  department 
Metropolitan  Life  Insurance  Co. 

Costs  and  selling  prices. — A  good  toothbrush  from  France  will  re- 
tail at  from  15  to  20  cents  apiece.  Prophylactic  toothbrushes  (do- 
mestic made)  cost  40  to  50  cents  apiece  since  the  war,  and  under 
normal  conditions  about  25  cents  apiece.  The  witness  disapproves 
of  cheap  toothbrushes  largely  used  on  account  of  price.  The  Japa- 
nese send  "  big,  unhandy,  wide  things." 

Size  of  the  industry. — There  are  only  two  toothbrush  manufactur- 
ers in  America,  each  manufacturing  a  "specialty. 

Comparability. — Only  high-priced  toothbrushes  are  produced  in 
the  United  States ;  not  the  cheaper  ones. 

Rates  suggested. — Toothbrushes  to  be  on  the  free  list. 

A  brief  filed  by  the  witness  (pp.  4045-4046)  emphasizes  the  recog- 
nized importance  of  mouth  hygiene  in  its  relation  to  health  and  de- 
preciates any  action  tending  to  increase  the  cost  of  the  very  articles 
necessary  for  the  maintenance  of  clean  and  healthy  mouths." 

Witness:  The  Williams  Brush  Co.,  Philadelphia,  Pa.  (Brief; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  tariff  duty  is  reckoned  as  part  of 
the  cost  of  the  brush  and  as  such  is  subject  to  the  same  profit  as 
any  other  item  of  cost. 

The  chief  item  of  cost  in  domestic  toothbrushes  is  neither  the 
material  nor  the  labor,  but  advertising. 

Size  of  industry. — There  are  only  two  concerns  in  the  United 
States  manufacturing  toothbrushes.  Both  manufacture  special 
brands  protected  by  copyrights. 

Comparability. — Popular-priced  brushes  used  by  the  masses  can 
not  be  produced  in  America. 

Rates  suggested. — The  brief  raises  the  question  whether  it  would 
not  be  advisable  to  place  toothbrushes  on  the  free  list.  American 
valuation  would  raise  the  tariff  between  50  and  60  per  cent,  thereby 
ruling  out  the  cheap  brush. 

The  American  valuation  plan  ^  referred  to  as  abominable. 


458  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Witness:  The  Horner-Kensil  Co.,  Philadelphia,  Pa.  (Brief;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — Extravagant  advertising  makes  the  price 
of  toothbrushes  prohibitive  to  poor  children.  They  are  very  un- 
satisfactory and  poor  in  quality  and  are  produced  by  a  machine,  em- 
ploying very  little  labor. 

Experience  in  the  past  has  always  been  that  prices  vary  with 
changes  in  the  tariff — that  cost  of  production  is  not  considered  in 
the  making  of  schedules. 

Comparability. — Inexpensive  brushes  can  not  be  made  in  America. 

Rates  suggested. — The  rates  as  set  forth  in  the  Fordney  bill  on 
toilet  brushes  should  be  sharply  revised  downward. 

Toothbrushes  should  be  permitted  to  come  in  free  of  duty.  The 
brief  states  that  it  would  be  impossible  to  establish  an  equitable  or 
satisfactory  "American  valuation  on  toilet  brushes.  They  have  never 
been  standardized,  and  can  not  be,  owing  to  the  wide  variations  of  the 
materials  and  designs.  No  two  lots  are  of  similar  value.'' 

Witness :  Charles  L.  Huisking  (Inc.) ,  New  York  City.  (Brief ;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — The  prices  of  brushes  are  higher  than 
they  ought  to  be  and  the  trend  of  costs  should  be  down  rather  than 
up.  An  increase  in  tariff  rates  would  have  the  effect  of  arbitrarily 
increasing  the  cost  to  all  consumers. 

PARAGRAPH  1408. — BRISTLES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OB  HIGHER  DUTIES  : 

Mr.  James  H.  Preston,  representing  the  William  Wilkens  Co.,  Baltimore,  Md. 
FAVORING  LOWER  DUTIES  : 

The  American  Brush  Manufacturers'  Association.     (Brief.) 

Hearings :  Pages  4049-4052. 

Witness :  Mr.  James  H.  Preston,  representing  the  William  Wilkens 
Co. 

Costs  and  selling  prices. — American  bristles  have  been  so  high  in 
comparison  with  foreign  that  the  cheap  foreign  article  has  entirely 
driven  them  out  of  the  market. 

Size  of  industry. — The  William  Wilkens  Co.,  of  Baltimore,  estab- 
lished in  1848,  employs  500  people,  and  is  practically  the  only 
American  manufacturer  of  bristles  using  the  American  bristle  in 
the  United  States.  At  present  the  company  does  $50,000  worth  of 
business  per  year,  but  owing  to  foreign  competition  the  business  is 
in  the  hands  of  a  receiver.  The  American  manufacture  of  bristles 
constitutes  only  1  per  cent  of  the  total  bristle  production  used  in  the 
United  States. 

Rates  suggested. — Seven  cents  per  pound  plus  15  per  cent  ad 
valorem.  An  ad  valorem  duty  is  necessary  because  the  price  varies 
so  much. 

Hearings :  Page  4042. 

Witness:  The  American  Brush  Manufacturers'  Association. 
(Brief.) 

Rates  suggested. — The  duty  on  raw  bristles  should  be  made  as  low 
as  possible  to  properly  take  care  of  the  actual  expenses  incurred  by 
the  Government  in  handling  this  particular  item. 


DIGEST  OF   TAKIFF   HEARINGS,   H.   R.    7456.  459 

If  a  duty  on  bristles  is  required  for  revenue  purposes,  providing 
the  increase  in  the  tariff  on  manufactured  brushes  is  granted,  the 
present  7  cents  per  pound  specific  duty  on  bristles  (sorted,  bunched, 
or  prepared)  can  be  continued.  (Note.  —  The  present  tariff  act  ad- 
mits "  bristles,  crude,  not  sorted,  bunched,  or  prepared  "  free  of  duty.) 

PARAGRAPH  1409.  —  BUTTON  FORMS  OF  LASTING,  ETC. 

WITNESS. 

REQUESTING  RECLASSIFICATION  : 

The  Joseph  W.  Schloss  Co.,  New  York  City.      (Brief;   no  appearance  at 
hearings.  ) 

Crochet  forms  should  be  specifically  mentioned  in  paragraph  1409, 
as  the  question  has  been  raised  whether  the  language  is  sufficiently 
broad  to  include  this  article.  It  is  suggested  that  there  be  inserted 
after  "other  material"  the  words  "crocheted,  woven,  or  made." 

PARAGRAPH  1410.  —  BUTTONS,  VEGETABLE  IVORY  AND  PEARL. 

WITNESSES,  AND  INTERESTS  BEPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  R.  C.  Laub,  representing  the  vegetable-ivory  button  industry.     (Brief.) 
Mr.  Theodore  G.  Robinson,  representing  the  Ocean  Pearl  Button  Manufac- 
turers'  Association,   the  Mother-of-Pearl   Industry   Association,   and   15 
other  manufacturers  not  meinbers  of  either  association.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.   Frank   J.  Appelbee,   representing   Appelbee   &   Neuman    (Inc.),   New 
York  City. 

Hearings  :  Pages  4053-4060. 

Witness  :  Mr.  R.  C.  Laub,  representing  the  vegetable-ivory  button 
industry.  (Brief.) 

Comparability.  —  German  and  Austrian  prices  received  by  cable 
August  11,  1912  : 

Plain  colors  and  black  (carded  and  boxed). 

Sizes  :  Per  gross. 

24-line  1  _________________________________________________________  $0.  40$ 

30-line  *  _________________________________________________________       .  67* 

36-line  '  _________________________________________________________     1.  08 

40-line  '  _________________________________________________________     1.  44 

45-line  1  _________________________________________________________     1.  80 

50-lin.e  *  __________________________________________________________    2.  88 

These  transpositions  were  made  at  $0.125  per  mark,  the  rate  of  ex- 
change at  time  of  quotation. 

At  the  present  rate  of  exchange  ($0.004  to  the  mark)  the  German 
and  Austrian  prices  would  figure  about  as  below,  assuming  no  ad- 
vance in  mark  prices: 


Sizes  : 

24-line  ___________________________________________________________  $0.13 

30-line  ___________________________________________________________  .22 

36-line  ___________________________________________________________  .35 

40-line  ____________________________________________________________  .46 

45-line  _________________________  -----------------------------------  .58 

50-line  _________                                                                          _____________  .92 

>A  "  line  "  is  equal  to  one-fortieth  of  an  inch. 


460  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

The  witness  understands,  however,  that  they  have  advanced  about 
15  per  cent,  a  negligible  factor  when  considered  in  dollars. 
The  latest  Italian  prices  are  as  follows : 

A.  Best  quality  Italian  goods,  carded  and  boxed,  polislied  solid  colors.1 

Sizes :  Per  gross. 

24-line $0.31 

30-line .47 

36-line .  75 

40-line .91 

45-line 1.  25 

50-line .     2.  26 

B.  Medium  quality  Italian  goods,  carded  and  boxed,  polished  solid  colors.1 
Sizes :  Per  gross. 

24-line $0.  31 

30-line .47 

36-line .67 

45-line 1.10 

50-line —    1.  69 

Some  Italian  manufacturers  have  already  established  agents  in 
this  country  who  are  quoting  the  above  prices  in  New  York  and  else- 
where. These  prices  compared  to  present  domestic  average  prices 
for  similar  classes  of  goods,  namely : 

I}.  Medium  and  cheaper  quality  carded  buttons  against  which  Italian  buttons 

will  compete. 
Sizes : 

24-line—  Per  gross. 

Solid  colors $1.  25 

Blacks 1.  00 

30-line— 

Solid  colors 1.  50 

Blacks 1.  25 

36-line— 

Solid   colors 1.  80 

Blacks 1.  60 

40-line— 

Solid  colors 3.  75 

Blacks 3.  25 

45-line— 

Solid  colors 6.  00 

Blacks 5.  00' 

50-line— 

Solid  colors 9.  00 

Blacks 8.  00 

A.  Fine  quality  carded  buttons,  against  which  German  and  Austrian  buttons 
will  compete. 

24-line —  Per  gross. 

Solid  colors $1.  8O 

Blacks 1.  40 

30-line— 

Solid   colors 2.  25 

Blacks 1.  75 

36-line— 

Solid   colors 4. 10 

Blacks 3. 15 

40-line— 

Solid  colors 5.  30 

Blacks * 4. 15 

5  per  cent  less  for  blacks. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 


461 


Sizes — Continued. 
45-line— 

Per  gross. 

Solid    colors $7.  25 

Blacks 6.  00 

50-line— 

Solid  colors 12.  30 

Blacks -     9.  90 

The  labor  cost  in  the  manufacture  of  vegetable-ivory  buttons  is 
the  largest  single  item  in  their  manufacture;  average  costs,  made 
up  of  75  per  cent  labor  and  overhead  as  against  25  per  cent  for  mate- 
rials. The  wages  paid  in  the  button  industry  in  Germany  are  genr 
erally  somewhat  lower  than  those  paid  in  larger  industries. 

Comparative  wages  per  day  of  eight  hours.1 


Operation. 

Germany. 

Italy. 

United 

States. 

Marks. 

Equiv- 
alent. 

Lire. 

Equiv- 
alent. 

Turners 

56 
57 
57 
55 
34 
34 
100 

$0.70 
.71 
.71 
.69 
.42 
.42 
1.25 

9 
11 
9 
9 
5 
5 
25 

$0.36 
.44 
.36 
.36 
.20 
.20 
1.20 

$5.12 
5.45 
6.25 
6.35 
2.50 
2.50 
9.50 

Dyers  

Mechanics 

Hand  workers  

Sorters  (female)  

Foremen  

Total 

393 

„ 

7.67 

i  For  Germany  the  wages  are  the  highest  paid  for  work  similar  to  the  various  operations  in  making 
buttons;  for  Italy  the  wages  are  those  paid  in  the  button  industry. 

In  a  general  way  it  can  be  said  that  a  lot  of  buttons  costing  $100 
to  produce  in  the  United  States  to-day  can  be  produced  in  Germany 
for  the  equivalent  of  $43.77;  a  button  that  would  cost  $1  per  gross 
here  can  be  produced  in  Germany  for  the  equivalent  of  $0.347  per 
gross. 

In  the  United  States  $100  worth  of  buttons  equals  771.25  lire 
($30.85)  in  Italy;  a  button  that  would  cost  $1  per  gross  here  can  be 
made  in  Italy  for  the  equivalent  of  $0.308. 

Size  of  industry. — Manufacturers  of  vegetable-ivory  buttons  in 
this  country  give  employment  to  approximately  6,000  people  under 
normal  conditions. 

Outside  of  the  United  States  the  industry  is  centered  largely  in 
Germany,  Austria,  Italy,  and  Japan. 

Rates  suggested. — Buttons  of  vegetable  ivory  and  of  horn,  finished 
or  partly  finished,  2  cents  per  line  per  gross  and  50  per  cent  ad  valo- 
rem. Vegetable-ivory  blanks  not  drilled,  dyed,  or  finished,  1J  cents 
per  line  and  15  per  cent  ad  valorem.  Rates  are  based  on  the  Ameri- 
can valuation.  The  classification  should  include  horn  buttons,  as 
they  compete  directly  with  vegetable-ivory  buttons. 

Remarks. — The  control  of  Tagua  nuts  was  before  the  war  and  is 
again  to-day  very  largely  in  the  hands  of  European  interests.  The 
control  of  practically  all  commercial  machinery  used  in  the  manu- 
facture of  vegetable-ivory  buttons  is  in  German  hands. 

An  appendix  to  the  brief  gives  a  description  of  the  process  of 
manufacture,  wages  in  various  industries  in  Germany,  and  prices  of 
commodities  in  Germany. 


462  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Hearings :  Pages  4061-4062. 

Witness:  The  Ocean  Pearl  Button  Manufacturers'  Association, 
the  Mother-of-Pearl  Industry  Association,  and  15  other  manufac- 
turers not  members  of  either  association.  (Brief.) 

Rates  suggested. — Buttons  of  pearl  or  shell,  finished  or  partly  fin- 
ished, 2^  cents  per  line  per  gross  and  25  per  cent  ad  valorem ;  pearl 
or  shell  button  blanks,  not  turned,  faced,  or  drilled,  2  cents  per  line 
per  gross  and  25  per  cent  ad  valorem. 

Remarks. — The  brief  cites  working  conditions  in  Japan  and  calls 
attention  to  hearings  before  the  Ways  and  Means  Committee  and  to 
the  report  of  the  Tariff  Commission  on  the  button  industry.  Low  as 
Japanese  production  costs  are,  buttons  can  be  produced  in  Czecho- 
slovakia at  practically  half  the  Japanese  cost. 

Hearings :  Pages  4062-4064. 

Witness:  Mr.  Frank  J.  Appelbee,  representing  Appelbee  &  Neu- 
man  (Inc.). 

Rates  suggested  (in  a  brief  submitted  by  the  witness). — Paragraph 
1410.  Buttons  of  pearl  or  shell,  finished  or  partly  finished,  1  cent  per 
line  per  gross;  pearl  or  shell  button  blanks,  not  turned,  faced,  or 
drilled,  one-half  cent  per  line  per  gross. 

PARAGRAPH  1411. — BUTTONS,  AGATE  AND  N.  s.  p.  r. 

WITNESSES,  AND  INTEBESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  M.  B.  Whittemore,  representing  the  Morley  Button  Manufacturing  Co., 
Portsmouth,  N.  H.,  and  Boston,  Mass. 

FAVORING  LOWER  DUTIES  : 

Mr.   Frank   J.   Appelbee,    representing  Appelbee   &   Neuman    (Inc.),   New 
York  City. 

Hearings :  Pages  4065-4068. 

Witness:  Mr.  M.  B.  Whittemore,  representing  the  Morley  Button 
Manufacturing  Co.,  Portsmouth,  N.  H.,  and  Boston,  Mass. 

Costs  and  selling  prices. — Buttons  are  being  imported,  laid  down 
here,  at  25  cents  per  great  gross.  The  identical  button  costs  wit- 
ness's plant  over  42  cents  to  produce.  Labor  cost  in  witness's  plant 
is  in  excess  of  50  per  cent. 

Size  of  industry. — The  company's  weekly  pay  roll,  running  about 
one-third  capacity,  was  $3,800  early  in  December,  1921. 

Rates  suggested. — Forty-five  per  cent  on  American  valuation  on 
buttons  not  specially  provided  for. 

Remarks. — Witness's  plant  manufactures  buttons  entirely  of  papier- 
mache  and  of  fiber  products  (shoe  and  clothing  buttons). 

Hearings :  Pages  4062-4064. 

Witness:  Mr.  Frank  J.  Appelbee,  representing  Appelbee  &  Neu- 
man (Inc.). 

Rates  suggested. — Buttons  commonly  known  as  agate  buttons,  15 
per  cent  ad  valorem;  agate  button  blanks,  molds,  or  parts  of  agate 
buttons,  10  per  cent  ad  valorem;  the  rest  of  paragraph  at  the  rate 
provided  for  in  the  bill. 

(Note. — Paragraph  1411  provides  for  15  per  cent  ad  valorem  on 
agate  buttons  and  38  per  cent  ad  valorem  on  parts  of  agate  buttons.) 


DIGEST  OF   TARIFF    HEARINGS,   H.    R.    7456. 


463 


PARAGRAPH  1412. — CORK. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Charles  D.  Armstrong,  representing  the  Armstrong  Cork  Co.,  Pitts- 
burgh, Pa. 

FAVORING  LOWER  DUTIES  : 

Mr.  Junius  H.  Stone,  representing  his  own  interests,  New  York,  N.  Y. 
Spanish  manufacturers  and  American  importers.     (A  communication  from 
the  Spanish  Embassy.) 

Hearings :  Pages  4068-4075. 

Witness :  Mr.  Charles  D.  Armstrong,  representing  the  Armstrong 
Cork  Co. 

Costs  and  selling  prices. — The  labor  involved  in  making  cork 
squares  is  about  two-thirds  of  the  total  labor  cost  of  the  finished 
cork.  Imports  of  the  larger  corks  in  1918-1920  show  an  average 
foreign  value  of  75  cents  per  pound.  Imports  of  small  corks  during 
1919  and  the  first  six  months  of  1920  show  an  average  foreign  invoice 
value  of  83  cents  per  pound.  The  standard  quality  crown  disk  at 
prewar  exchange  is  valued  f.  o.  b.  steamer  foreign  port  at  about  85 
cents  per  pound.  Imports  of  cork,  artificial  or  cork  substitutes, 
manufactured  from  cork  waste  or  granulated  cork  and  n.  s.  p.  f.  in 
1919  were  valued  at  an  average  of -66  cents  per  pound. 

The  difference  in  cost  of  production  in  the  United  States  and  in 
Spain  is  due  to  three  factors  applying  to  Spain:  (1)  Lower  cost  of 
raw  materials  (all  exports  of  bark  are  taxed  5  pesetas  gold  per  100 
kilos  by  the  Spanish  Government)  ;  (2)  lower  overhead  and  fixed 
charges;  (3)  lower  labor  costs. 

Comparison  of  wages  paid  in  the  Armstrong  factories  located  at  Pittsburgh 
and  Senile. 


Average  rates  per 
week. 

Average  rates  per 
week. 

Spain. 

United 
States. 

Spain. 

United 
States. 

Cork  bark  sorters  
Cork  punchers  
Machine  operatives  

$6.00 
5.00 
3.25 

$30.00 
30.00 
15.00 

Sorters  of  cork  

$3.25 
4.50 
3.50 

$15.00 
24.00 
15.00 

Common  labor  

Boys  

Size  of  industry. — The  cork  industry  in  the  United  States  com- 
prises at  least  20  companies  with  a  probable  invested  capital  of  over 
$15,000,000.  These  factories  employ  more  than  6,000  operatives. 

Rates  suggested. — The  following  changes  are  recommended;  they 
restore  substantially  the  rates  prevailing  under  the  tariff  act  of 
August  5,  1909:  1.  Cork  bark  cut  into  squares,  cubes,  or  quarters, 
8  cents  per  pound.  2.  (a)  Manufactured  cork  stoppers  over  three- 
fourths  of  an  inch  in  diameter,  measured  at  the  larger  end,  and  (6) 
manufactured  cork  disks,  wafers,  or  washers  over  three-sixteenths  of 
an  inch  in  thickness,  20  cents  per  pound.  3.  (a)  Manufactured  cork 
stoppers  three-fourths  of  an  inch  or  less  in  diameter,  measured  at 
the  larger  end,  and  (Z>)  manufactured  cork  disks,  wafers,  or  washers 


464  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

three-sixteenths  of  an  inch  or  less  in  thickness,  25  cents  per  "pound. 
4.  Cork,  artificial  or  cork  substitutes,  manufactured  from  cork  waste 
or  granulated  cork  and  n.  o.  p.  f.  in  this  section,  35  per  cent  ad 
valorem.1  5.  Cork  insulation,  wholly  or  in  chief  value  of  granu- 
lated cork  in  slabs,  boards,  planks,  or  molded  forms,  35  per  cent  ad 
valorem.1  6.  Cork  paper,  35  per  cent  ad  valorem.1  7.  Manufac- 
tures wholly  or  in  chief  value  of  cork  or  of  cork  bark  or  of  artificial 
cork  or  bark  substitutes,  granulated  or  ground  cork,  n.  s.  p.  f.,  35 
per  cent  ad  valorem.1 

Remarks. — Cork  disks  were  formerly  manufactured  in  this  coun- 
try in  very  large  quantities,  but  it  has  been  found  more  advantageous 
under  the  present  and  preceding  tariffs  to  make  them  in  Spain  or 
Portugal  and  to  import  them  in  finished  form.  At  the  present  time 
the  cork  composition  industry  is  in  the  primary  stage  of  development. 

Cork  insulation  is  the  most  important  item  in  the  cork  schedule. 
A  considerable  amount  of  cork  paper  used  for  cigarette  tips  was 
formerly  manufactured  in  the  United  States,  but  the  business  dur- 
ing the  last  few  years  has  drifted  entirely  to  Europe. 

Hearings :  Pages  4075-4085. 

Witness :  Mr.  Junius  H.  Stone,  representing  his  own  interests,  New 
York  City. 

Costs  and  selling  prices. — Labor  costs  before  the  war  were  $1.50  to 
$1.75  per  10-hour  day;  since  then  they  have  reached  $4  per  8-hour 
day,  and  are  now  down  to  $3  per  8-hour  day. 

Cost  of  labor  in  the  United  States  is  approximately  1£  cents  per 
square  foot;  in  Spain  it  is  about  0.7  cent  per  square  foot;  in  United 
States  it  is  about  25  per  cent  of  the  total  cost  of  production;  in 
Spain  about  18  per  cent.  Wages  in  the  United  States  have  dropped 
25  per  cent  from  the  peak;  in  Spain  about  15  per  cent.  American 
labor  is  more  efficient. 

Size  of  industry. — The  manufacture  of  cork  insulation  forms  an 
important  branch  of  the  cork  industry. 

Rates  suggested. — The  witness  is  opposed  to  assessing  duty  on 
American  valuation  and  to  an  ad  valorem  duty.  He  states  that  the 
specific  duty  is  better  for  this  item,  and  suggests  three-fourths  of  1 
cent  per  pound,  which  is  three  times  the  existing  rate. 

Remarks. — The  witness  is  interested  only  in  cork  insulation, 
wholly  or  in  chief  value  of  cork  waste,  granulated  or  ground  cork,  in 
slabs,  boards,  planks,  or  molded  forms,  on  which  the  proposed  'duty 
is  25  per  cent  ad  valorem.  Cork  board  is  standard  insulation 
throughout  the  country  for  cold-storage  plants,  ice  and  ice-cream 
plants,  refrigerator  cars,  etc.,  and  should  not  be  placed  on  the  same 
basis  as  cork  paper  for  cigarette  tips,  fishing-rod  handles,  and  other 
similar  articles,  but  on  a  basis  with  lumber,  for  which  it  is  a  sub- 
stitute. A  comparatively  small  ice  or  cold-storage  plant  will  take 
100,000  to  250,000  board  feet  of  this  insulation,  while  in  a  single 
large  plant  in  New  York  there  is  installed  between  2,000,000  and 
3,000,000  board  feet. 

The  duty  suggested  would  afford  ample  protection  "to  American 
industry,  produce  the  largest  possible  revenue,  and  protect  American 
users  of  the  product  from  unreasonably  high  prices. 

*Ad  valorem  rates  recommended  are  based  on  foreign  invoice  or  market  values,  as  in 
the  tariff  of  1918,  now  in  force. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  465 

The  domestic  industry  is  so  dominated  by  one  company  as  to  be 
a  virtual  monopoly,  with  competition  only  from  foreign  sources,  and 
the  proposed  rates  will  prohibit  any  large  imports  of  this  material. 
Also,  with  an  ad  valorem  rate,  based  on  American  valuation,  this 
dominant  company  could  cause  importers  to  pay  increased  duties 
by  artificially  increasing  the  price  throughout  the  country  when 
shipments  are  received,  and  then  drop  back  to  the  previous  price 
when  the  duty  has  been  assessed  at  the  higher  valuation. 

Spanish  manufacturers  and  American  importers,  in  a  communica- 
tion addressed  to  the  Spanish  Embassy  at  Washington  and  transmit- 
ted to  the  Finance  Committee  by  the  Department  of  State : 

Costs  and  setting  prices. — Composition  disks  are  made  in  the 
United  States  at  a  very  low  cost  with  modern  machines  by  patented 
processes,  so  that  no  artificial  disks  are  imported  from  Spain  or 
other  countries.  The  advantage  derived  by  Spanish  manufacturers 
from  their  cheaper  labor  is  greatly  offset  by  the  considerably  higher 
efficiency  of  the  American  workman,  the  lower  cost  of  fuel,  and  the 
highly  developed  American  machinery.  Labor  in  the  cork  industry 
in  Spain  has  advanced  more  than  100  per  cent  against  prewar  times, 
and  it  is  not  probable  that  wages  can  be  reduced  again.  Prices  for 
cork  board  before  the  war,  when  there  was  competition  from  Europe, 
were  about  4  to  5  cents  a  square  foot.  Prices  were  raised  during  the 
war  to  18  cents  until  imports  from  Spain  brought  the  price  back 
to  about  7  cents,  now  ruling. 

Size  of  industry. — Reliable  figures  give  the  consumption  of  cork 
board  in  the  United  States  as  70,000,000  to  80,000,000  square  feet 
a  year.  The  manufacture  of  cork  board  in  the  United  States  is 
a  practical  monopoly,  there  being  one  dominating  manufacturer, 
the  Armstrong  Cork  Co.,  which  manufactures  approximately  60  to 
70  per  cent  of  the  cork  board  used  in  the  United  States.  Two  other 
small  concerns  divide  the  remaining  business  between  them,  with  the 
exception  of  about  7,000,000  square  feet  imported  from  Spain. 

Rates  suggested. — The  only  one  way  to  be  fair  to  the  importer  is 
to  leave  the  duty  on  cork  board  a  specific  one.  In  the  hearings  be- 
fore the  Committee  on  Ways  and  Means  it  was  stated  by  one  of  the 
witnesses  that  a  specific  duty  of  three-fourths  cent  per  pound  will 
more  than  compensate  the  difference  in  labor,  but  he  failed  to  take 
into  consideration  that  the  Spanish-made  cork  board  must  be  sent  in 
crates,  the  cost  of  which  alone  amounts  to  about  one-half  cent  a 
square  foot.  The  duty  on  cork  disks,  washers,  or  wafers  should  be 
maintained  at  the  actual  duty  of  15  cents  a  pound.  The  duty  on 
cork  board  and  cork  tile  should  be  altered  from  one-fourth  cent  to 
three-fourths  cent  per  pound. 

Remarks. — The  importation  of  bottle  corks  has  considerably  de- 
creased, owing  to  prohibition.  A  comparatively  good  business  is 
still  done  in  cork  disks,  of  which  only  the  very  best  grade  is  im- 
ported, the  sale  of  the  lower  grades  being  rendered  impossible 
through  the  high  duty  of  15  cents  per  pound  weight.  The  importa- 
tion of  high-grade  disks  is  now  on  the  decline,  as  artificial  cork 
disks  made  out  of  cork  waste  have  taken  the  place  of  the  natural. 
The  export  duty  on  the  raw  material,  cork  bark,  is  a  nominal  one, 
having  been  recently  reduced  to  only  one-fourth  cent  per  pound. 


466  DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456. 

PARAGRAPH  1414. — DOLLS  AND  TOYS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Alfred  C.  Gilbert,  representing  the  Toy  Manufacturers  of  the  United 

States  of  America  (Inc.). 
Mr.  Robert  H.  McCready.     (Brief.) 
Mr.  W.  H.  Fulper,  representing  the  Fulper  Pottery  Co.,  Flemington,  N.  Y. 

Hearings :  Pages  4085-4094. 

Witness:  Mr.  Alfred  C.  Gilbert,  representing  the  Toy  Manufac- 
turers of  the  United  States  of  America  (Inc.). 

Costs  and  selling  prices. — An  assortment  of  toys  (exhibit)  was 
sent  from  Germany  with  all  charges  paid  for  $1.  The  same  set  could 
not  be  reproduced  here  for  $7.5. 

Air  rifles,  German-made  (exhibits),  retail  in  Germany  for  18 
marks,'  35  marks,  and  100  marks. 

Trolley  car  (exhibit),  German-made,  bought  at  retail  in  New 
York  for  $2.45 ;  in  Chicago,  for  97  cents.  Trolley  car,  American- 
made,  will  retail  at  not  less  than  $3. 

Tea  set  (exhibit),  domestic  price,  $45  per  gross;  import  price, 
$33  per  gross. 

Trains,  German-made,  landed  for  $1.09,  sold  for  $2.50  to  $3. 
American  make,  comparable,  sold  for  $2.75. 

Size  of  industry — 
Firms  making  dolls  in  United  States : 

1913 14 

1920 142 

Doll   manufacturers,    1920 134 

•     Of  whom  only  12  are  left  to-day. 
Toy  manufacturers : 

1914 _• 290 

1920 1,800 

Employees,    1920 40,  000 

The  educational  toy  is  a  comparatively  new  industry,  developed 
by  American  toy  manufacturers. 

Comparability. — Germans  specialize  a  great  deal  in  what  is  called 
the  trashy  type  of  toy.  Americans  specialize  in  what  is  called  the 
educational  toy. 

Rates  suggested. — A  tariff  of  at  least  70  per  cent  on  foreign  value 
or  a  corresponding  rate,  not  less  than  40  per  cent,  on  American 
value. 

Remarks. — A  brief  of  Mr.  Robert  H.  McCready,  filed  by  the  wit- 
ness (p.  4095),  includes  the  following  data  on  competitive  conditions 
in  Germany : 

Sonneberg  district,  where  cheap  toys  are  made,  wages  October  1, 
1921 :  Basic  or  minimum  wage,  per  hour. — Men  25  years  of  age,  9.15 
marks;  women  22  years  of  age,  4.50  marks.  Percentages  are  added 
for  increased  age,  up  to  30  years;  for  each  year  of  service  up  to  5 
years ;  also  for  married  men  or  women  who  support  some  one  besides 
themselves.  Pieceworkers  must  be  guaranteed  25  per  cent  above  the 
basic  wage. 

Nuremberg,  metal  and  other  toys  of  more  expensive  type:  The 
October  scale  basic  wage  ranged  from  7  to  9  marks  an  hour.  Fore- 
men had  a  basic  wage,  August,  1921,  of  1,850  marks  a  month ;  superin- 
tendents, August,  1921,  2,100  marks  a  month. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 


467 


Hearings :  Pages  4096-4098. 

Witness:  Mr.  W>  H.  Fulper,  representing  the  Fulper  Pottery  Co., 
Flernington,  N.  Y. 

Costs  and  selling  prices. — Hand  labor  enters  into  the  cost  of  pro- 
duction to  the  extent  of  75  per  cent.  A  brief  submitted  by  the  wit- 
ness gives  the  firm's  wholesale  price  for  doll  heads  as  316  per  cent 
above  the  German.  The  firm's  extreme  price  is  253  per  cent  higher 
than  the  German  prices  cited  below. 

Prices  of  German  samples. 


Their  numbers. 

Wholesale 
price  per 
dozen. 

Compares 
with  our 
number. 

Our  best 
wholesale 
price  per 
dozen. 

Our  ex- 
treme 
manufac- 
turers' 
price  per 
dozen. 

390/1  .  .  . 

$3.00 

40 

$9.00 

$9  20 

390/2.    .. 

3.60 

11  25 

9  00 

390/5 

5  50 

2c 

15  75 

12  60 

390/6  

6.25 

2b 

20.25 

16.20 

390/8... 

9.50 

2a 

27.00 

21.60 

Size  of  industi^y. — The  firm's  maximum  production  of  doll  heads 
on  March  12,  1920,  amounted  to  1,250  heads  per  day.  None  have  been 
made  since  October,  1920.  The  firm  has  spent  approximately  $100,000 
in  making  possible  the  manufacture  of  bisque  doll  heads  in  America. 

Comparability. — The  quality  of  American  bisque  doll  heads  is  rec- 
ognized by  experts  as  being  at  least  equal  to  the  best  made.  Other 
foreign  makes  are  not  in  any  way  comparable  in  quality  to  the  Ger- 
man heads,  being  inferior  in  finishing  and  decoration. 

Rates  suggested. — It  is  requested  that  the  Treasury  decision  which 
permits  bisque  doll  heads  to  come  in  under  the  paragraph  on  toys  and 
parts  of  toys  at  a  duty  of  35  per  cent  instead  of  55  per  cent  under 
paragraph  80  of  the  present  law  relating  to  Parian  and  bisque  wares 
be  set  aside  or  that  the  rate  in  paragraph  1414,  H.  K.  7456,  be  made 
55  per  cent  on  American  valuation.  A  rate  of  40  per  cent  on  Ameri- 
can valuation  would  not  be  sufficient.  Dolls  with  bisque  heads  should 
have  a  protection  of  55  per  cent  on  American  valuation. 


The  following  data  are  abstracted  from  a  brief  filed  by  the  com- 
pany: 

Foreign-made  bisque  figures,  statuettes,  porcelain  lamps,  and  simi- 
lar articles  are  offered  in  the  American  market  for  one-half  the 
American  cost  of  production.  Cheap  foreign  labor  is  assisted  by 
cheap  money  under  present  exchange  conditions. 

The  manufacture  was  begun  in  America  about  the  middle  of  1919, 
many  thousands  of  heads  being  destroyed  during  the  education 
period.  Of  100  or  more  doll  factories  in  1920,  there  are  now  a  bare 
half  dozen,  and  not  one  bisque  doll  head  is  being  produced,  and  this 
although  America  is  the  only  country  able  to  make  doll  heads  equal 
in  quality  to  the  German.  High  ceramic  ability  and  artistic  skill 
are  necessary  to  produce  doll  heads. 


468  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

The  brief  asserts  that  to  make  the  foreign  article  in  this  class  com- 
petitive with  similar  American-made  articles,  assessing  duty  on 
the  foreign  value,  an  ad  valorem  duty  running  into  many  hundreds 
per  cent  would  be  required,  eventually  acting  as  an  embargo. 

PARAGRAPH   1415. — ABRASIVES    (CRUDE   ARTIFICIAL   ABRASIVES). 

WITNESSES  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  Robert  MacDonald,  representing  the  General  Abrasive  Co.,  Niagara 
Falls,  N.  Y. 

FAVORING  LOWER  DUTIES  : 

The  Manufacturers'  Association  of  Bridgeport,  Conn.     (Brief.) 
The   Grinding  Wheel  Manufacturers'   Association.      (Brief.) 

Hearings :  Pages  4098-4103. 

Witness :  Mr.  Robert  MacDonald. 

Costs  and  selling  prices. — The  European  manufacturer  can  sell 
crude  and  artificial  abrasives  in  this  country  for  less  than  it  costs 
to  produce  them  here.  The  American  manufacturer  must  pay  twice 
as  much  for  bauxite  at  the  mines  as  the  European  manufacturer 
and  in  addition  must  pay  more  than  twice  as  much  for  freight. 
Crude  artificial  abrasive  from  Switzerland  in  1915  was  sold  for  $56 
a  ton  in  New  1  ork.  It  is  still  marketed  in  this  country.  To  produce 
a  similar  article  here  costs  $75.  Abrasive  grains  of  another  foreign 
manufacturer  are  offered  at  6f  cents  per  pound,  LJ  cents  less  than 
the  American  manufacturer  can  sell  for.  In  1920  the  cost  of  manu- 
facturing crude  artificial  aluminous  abrasive  in  Canada  was  $65  a 
ton,  in  the  United  States  $75  a  ton.  About  65  per  cent  of*  the  cost  is 
in  making  the  crude  abrasive,  and  35  per  cent  in  reducing  it  to  the 
granular  form. 

Size  of  industry.— Output  is  estimated  at  $60,000,000  a  year.  Em- 
ployees number  about  25,000.  It  is  of  recent  development,  having 
had  its  principal  growth  in  the  past  20  years.  Abrasive  products  are 
necessary. in  practically  all  mechanical  industries. 

Comparability.  —  European  manufacturers  have  advantages  of 
raw-material  supply  near  point  of  manufacture,  cheap  power,  and 
cheap  labor.  American  manufacturers  face  long  hauls  for  raw  mate- 
rial, as  the  plants  must  be  located  where  power  is  cheap.  Domestic 
wages  are  higher  without  greater  efficiency,  as  the  labor  is  of  the 
unskilled  iclass. 

Rates  suggested. — Twenty  per  cent  ad  valorem  on  crude  artificial 
abrasives.  The  rate  of  5  per  cent  on  crude  artificial  abrasives  is  too 
low  to  protect  the  American  manufacturer.  It  is  out  of  proportion 
to  the  rate  of  duty  specified  on  emery  and  carborundum  grains  and 
on  grinding  wheels.  Five  per  cent  on  the  average  cost  of  imported 
crude  artificial  abrasives  amounts  to  about  four-tenths  of  1  cent  per 
pound.  A  specific  duty  of  $20  per  short  ton  on  abra'sive  grains  has 
been  in  effect  under  the  Payne- Aldrich  tariff  bill.  Abrasive  grains 
are  simply  crude  abrasive  broken  into  granular  form. 

Remarks. — Three  American  manufacturers  of  grinding  wheels 
have  formed  Canadian  companies  to  manufacture  crude  artificial 
corundum  in  that  country,  the  output  being  used  principally  by 
these  three  companies  and  not  generally  distributed  among  the 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   1456.  469 

grinding- wheel  makers  of  the  United  States.  They  enjoy  lower 
power  and  other  costs  in  Canada.  They  are  opposing  any  duty  on 
crude  artificial  abrasives  in  the  name  of  the  Grinding  Wheel  Manu- 
facturers' Association,  and  appeared  before  the  Ways  and  Means 
Committee  for  that  purpose.  The  witness  states  that,  as  a  matter  of 
fact,  the  majority  of  the  more  important  members  of  the  Grinding 
Wheel  Manufacturers'  Association  favor  a  reasonable  tariff  on  crude 
artificial  abrasives  in  order  that  a  domestic  supply  of  their  raw  mate- 
rial may  be  protected  and  developed.  In  France  and  Austria  there 
are  enormous  deposits  of  high  grade  bauxite,  the  principal  raw  mate- 
rial. In  this  country  bauxite  is  found  in  commercial  quantities  only 
in  Arkansas  and  Georgia. 

A  duty  on  the  crude  artificial  abrasives  would  not  result  in  in- 
creased prices,  but  would  merely  help  place  the  American  manufac- 
turer more  nearly  on  an  equality  with  his  European  competitor.  A 
duty  would  not  unjustly  affect^the  Canadian  plants  of  these  com- 
panies, as  they  enjoy  lower  power  and  other  costs. 

Witness:  The  Manufacturers'  Association  of  Bridgeport,  Conn. 
(Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Crude  artificial  abrasives  should  remain  on  the 
free  list. 

Remarks. — Bauxite,  mined,  crushed,  and  calcined  in  Arkansas,  is 
shipped  to  the  Canadian  side  of  Niagara  Falls,  where  it  is  reduced 
to  crude  artificial  abrasive  by  electric  furnaces,  which  are  in  fact 
departments  of  large  American  industries.  Manufacturers  and 
users  of  abrasive  grains  would  be  forced  to  bear  the  burden,  directly 
or  indirectly,  if  crude  artificial  abrasives  were  removed  from  the 
free  list.  Approximately  75  per  cent  of  the  crude  artificial  abra- 
sives used  in  the  United  States  are  made  in  Canada  from  American 
materials  and  with  American  capital.  The  location  of  electric  fur- 
naces on  the  Canadian  side  of  Niagara  Falls  was  a  war  necessity 
rather  than  a  manufacturers'  choice.  Fully  ten  times  more  labor  is 
required  in  manufacturing  abrasive  grains  in  the  refining  plants 
located  in  the  United  States  than  is  employed  in  the  electric  furnace 
departments  in  Canada.  Both  domestic  and  foreign  trade  would  be 
inj  ured  by  the  proposed  tariff. 

Witness :  The  Grinding  Wheel  Manufacturers'  Association. 
(Brief;  no  appearance  at  hearings.) 

Size  of  industry. — The  grinding-wheel  industry  of  the  United 
States  comprises  27  plants,  whose  manufactured  products  in  1920 
amounted  to  over  $28,000,000.  The  principal  raw  material  is  crude 
artificial  abrasive.  It  can  be  economically  produced  only  where 
cheap  electric  power  is  obtainable  in  large  quantity.  It  was  impos- 
sible, during  the  war,  to  increase  electric  furnace  production  at 
Niagara  Falls,  N.  Y..  or  elsewhere  in  the  United  States,  to  meet  the 
demands  of  munition  manufacturers  in  the  grinding  of  guns,  shells, 
airplane  and  automobile  parts,  railroad  equipment,  etc.  The  Ameri- 
can* abrasive  manufacturers  were  therefore  obliged  to  expand  their 
electric  furnace  departments  on  the  Canadian  side,  where  there  was 
a  surplus  of  electric  power. 

Rates  suggested. — The  only  suggestion  for  a  tariff  comes  from  a 
single  manufacturer  of  abrasives  whose  output  represents  less  than 
5  per  cent  of  the  total  used  in  the  industry.  The  other  95  per  cent, 
77134—22 31 


470  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

together  with  the  27  manufacturers  of  grinding  wheels  and  the  9 
manufacturers  of  abrasive  paper  and  cloth,  are  unanimous  in  sup- 
porting the  petition  that  the  raw  materials  of  this  industry  should 
not  be  taxed  unless  all  raw  materials  are  to  be  taxed  for  revenue 
purposes. 

PARAGRAPH  1415. — ABRASIVE  PAPERS  AND  CLOTHS. 

WITNESSES. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  American  Glue  Co.  and  others.     (Brief;  no  appearance  ftt  hearings.) 

Rates  suggested. — The  only  specific  mention  of  abrasive  paper  in 
previous  tariff  bills  was  in  the  act  of  1913,  which  made  emery  paper 
dutiable  at  20  per  cent;  this  is  only  one  of  10  to  15  kinds  of  surface- 
coated  abrasive  papers  and  cloths.  The  following  is  a  list  of  abra- 
sive papers  and  cloths  manufactured  in  this  country.  Emery  cloth, 
emery  paper,  flint  cloth  and  flint  paper,  garnet  cloth  and  garnet 
paper,  flint,  emery  and  garnet  polishing  paper,  glass  paper,  artificial 
cloth  and  paper,  i.  e.  cloth  or  paper  coated  with  artificial  abrasives, 
chalk  flint  cloth  and  paper,  and  crocus  cloth. 

The  foregoing  enumerated  abrasive  surface  coated  papers  and 
cloths  should  be  dealt  with  as  a  unit  and  subjected  to  a  duty  of  25 
per  cent.  A  separate  paragraph  should  be  inserted  as  follows : 

All  papers,  cloths,  or  combinations  of  paper  and  cloth,  wholly  or  partly 
coated,  with  artificial  or  natural  abrasives,  or  a  combination  of  natural  or 
artificial  abrasives,  25  per  centum  ad  valorem. 

If  the  American  valuation  plan  is  not  adopted,  the  rate  of  duty 
should  be  35  per  cent. 

Remarks. — The  Board  of  General  Appraisers  under  the  act  of 
1909  classified  sandpaper  as  surface-coated  paper  and  it  has  been, 
since  that  time,  so  classified  and  treated. 

The  act  of  1909,  paragraph  411.  imposed  a  duty  of  5  cents  per 
pound  on  "  papers  with  coated  surface  or  surfaces  n.  s.  p.  f . " ;  the 
act  of  1913,  paragraph  324,  a  duty  of  35  per  cent;  and  H.  R.  7456, 
paragraph  1305,  a  duty  of  5  cents  per  pound.  Abrasive  cloths,  since 
the  tariff  act  of  1897,  have  been  classified  as  "  manufactures  of  cotton 
or  of  which  cotton  is  the  component  material  of  chief  value,  n.  s.  p.  f ." 

The  act  of  1909,  paragraph  332.  imposed  a  duty  of  45  per  cent  on 
"  manufactures  of  cotton  or  of  which  cotton  is  the  component  ma- 
terial of  chief  value  " ;  the  act  of  1913,  paragraph  266,  a  duty  of  30 
per  cent ;  and  H.  R.  7456,  paragraph  920,  a  duty  of  28  per  cent. 

PARAGRAPH  1417. — MATCHES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.    Fred   Fear,    representing   the   Match   Manufacturers'   Traffic  Bureau, 
New  York  City. 

FAVORING  LOWER  DUTIES  : 

The  Vulcan  Match  Co.   (Inc.)r  New  York  City.     (Brief.) 

Hearings :  Pages  4106-4112. 
Witness :  Mr.  Fred  Fear. 

Costs  and  selling  prices. — During  the  war  period  matches  were 
imported  and  sold  here  as  low  as  25  cents  per  gross  of  144  boxes,  duty 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  471 

paid.  To-day's  price  for  the  same  matches  is  $1  per  gross.  The  wit- 
ness had  been  informed  that  these  same  matches  are  selling  in  Sweden, 
although  manufactured  there,  at  $1.40  per  gross. 

Size  of  industry.— Capital  $50.000,000;  employees,  about  12,000; 
production  in  1920,  25.480,000  gross.  During  the  past  20  years  about 
300  to  400  match  companies  have  begun  operations,  but  the  actual 
number  now  in  business  does  not  exceed  20. 

Comparability. — Comparative  costs  are  difficult.  Foreign  matches 
are  all  packed  in  small  boxes  containing  between  50  and  60  matches, 
whereas  American  matches  are  packed  in  large  boxes  containing  400 
to  500  matches;  nor  are  foreign  manufacturers  able  to  produce  a 
satisfactory  American-type  match.  However,  because  of  cheap  labor 
and  raw  materials  it  is  possible  for  foreign  matches  to  be  imported 
and  to  undersell  domestic  matches.  Foreign  manufacturers  could 
lay  down  matches  here  to-day  for  15  cents  per  gross  of  144  boxes. 
The  same  number  of  American-type  matches  would  cost  to  produce 
here  TO  to  90  cents.  Although  foreign  matehes  could  be  laid  down 
at  15  cents  it  is  not  being  done,  as  the  foreign  manufacturer  is  get- 
ting larger  profits  and  selling  them  for  50  to  75  cents  with  the  help 
of  the  present  low  tariff. 

Rates  suggested. — Twenty-five  cents  per  gross  boxes  on  boxes  con- 
taining 100  matches  or  less,  and  3  cents  per  thousand  matches  on 
boxes  containing  over  100  matches. 

Remarks. — The  witness  states  that  increased  rates  are  necessary 
in  the  interests  of  the  smaller  companies  which  he  represents;  that 
the  large  company,  the  Diamond  Match  Co.,  would  not  be  affected 
by  any  change  in  tariff,  because,  with  its  foreign  connections  and 
domestic  facilities,  it  could  either  import  matches  or  manufacture 
them  here.  An  increased  duty  would  help  the  smaller  companies, 
but  would  not  increase  the  cost  to  the  consumer,  nor  would  it  result 
in  the  withdrawal  of  the  1-cent  box  of  matches.  It  would  also 
result  in  larger  revenue  to  the  Government. 

The  American  companies  are  now  all  making  a  high-grade  stand- 
ard match,  a  product  developed  by  scientific  research  and  practical 
experience.  It  has  been  designed  to  conform  to  all  fire-prevention 
laws,  is  the  safest  match  in  the  world  from  a  fire-hazard  standpoint, 
and  since  1913  all  domestic  matehes  have  been  of  nonpoisonous 
materials. 

Competition  is  feared  chiefly  from  the  Scandinavian  countries  and 
Japan.  Sweden  is  a  match-making  country,  its  association  with  Ger- 
many insuring  an  ample  supply  of  potash  and  nearness  to  Russia 
affords  a  supply  of  suitable  timber.  Japan  has  very  cheap  labor,  is 
able  to  dra\v  on  eastern  Russia  for  timber,  and  is  herself  a  producer 
of  potash. 

Witness:  The  Vulcan  Match  Co.  (Inc.).  New  York.  (Brief;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — The  price  of  Swedish  matches  in 
Sweden  and  in  the  United  States  is  relatively  the  same  according 
to  freight,  etc..  expenses  involved,  no  advantage  in  price  being  ob- 
tained in  either  country. 

*iz<-  of  industry. — Statistics  -show  that  during  the  last  10  years  the 
largest  yearly  importation  of  Swedish  safety  matches  into  the  United 


472  DIGEST   OF   TARIFF   HEARINGS,    H.  R.    7456. 

States  amounted  to  less  than  $2,000,000,  while  during  the  same  single 
year  domestic  manufacturers  produced  matches  to  the  value  of 
$23,000,000. 

Comparability. — The  Swedish  safety  match  is  not  in  competition 
with  the  usual  so-called  American  "strike-anywhere  safety  match," 
which  is  packed  in  large  boxes  containing  400  to  500  sticks.  The 
Swedish  match  is  packed  60  sticks  to  the  box. 

Remarks. — The  Swedish  safety  match  is  used  in  a  limited  field  in 
the  United  States,  being  principally  adopted  by  smokers  and  persons 
compelled  to  carry  small  quantities  of  matches  about  their  persons. 
For  years,  and  at  the  present  time,  the  raw  materials,  consisting  of 
chemicals,  glue  and  paraffine  wax,  have  practically  all  been  imported 
from  the  United  States  by  Swedish  manufacturers. 

PARAGRAPH  1418. — BLASTING  CAPS. 

WITNESSES. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Atlas  Powder  Co.,  Wilmington,  Del.     (Brief.) 
The  California  Cap  Co.     (Brief.) 

Witness:  The  Atlas  Powder  Co.,  Wilmington,  Del.  (Brief;  no  ap- 
pearance at  hearings.) 

Hates  suggested. — The  duty  on  quicksilver  has  been  increased  in 
H.  R.  7456  to  35  cents  per  pound.  Fulminate  of  mercury,  a  product 
of  quicksilver,  is  on  the  free  list,  paragraph  1516.  Theoretically,  1 
pound  of  quicksilver  gives  a  return  of  1.42  of  fulminate,  but  from  a 
practical  standpoint  1  pound  of  fulminate  requires  eight-tenths  of  a 
pound  of  quicksilver.  The  duty  on  quicksilver  being  35  cents  per 
pound,  eight-tenths  of  this  amount,  or  28  cents,  should  apply  to  mer- 
cury detonators  or  blasting  caps  for  each  pound  of  fulminate  of 
mercury.  Two  pounds  of  fulminate  of  mercury  are  required  to  manu- 
facture 1,000  detonators  or  blasting  caps:  the  proposed  duty  on  blast- 
ing caps  should,  therefore,  be  increased  to  the  full  extent  of  the  in- 
crease on  quicksilver  by  adding  56  cents  per  1,000  to  $2.25,  making 
the  base  duty  about  $2.75  per  1,000. 

Witness:  The  California  Cap  Co.  (Brief;  no  appearance  at  hear- 
ings.) 

Costs  and  selling  prices. — The  standard  1-gram  cap,  known  as 
No.  6  strength,  is  now  selling  throughout  the  United  States  at  an 
average  list  price  of  $2.50  per  1,000  less  than  during  the  war.  Prices 
of  other  grades  have  also  been  reduced  in  proportion  to  the  weight 
of  explosive  charge. 

Quicksilver  can  be  obtained  to-day  at  around  $60  per  75-pound 
flask — less  than  it  could  be  bought  for  during  the  war. 

Hates  suggested. — If  the  proposed  advance  in  duty  on  quicksilver 
is  retained,  fulminate  of  mercury,  73  per  cent  of  which  is  quicksilver, 
should  be  taken  from  the  free  list  and  made  dutiable  at  seventy-three 
one-hundredths  of  1  cent  for  each  1  cent  advance  in  the  rate  of  duty 
on  quicksilver,  or  0.73X(35  cents,  the  proposed  rate.  — 7  cents,  the 
equivalent  specific  duty  of  10  per  cent  ad  valorem  in  the  1913  act)r= 
0.73X28=r20.4  cents.  For  blasting  caps  containing  not  more  than 
1-gram  charge  the  duty  per  1,000  caps  should  be  increased  1.37  cents 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  473 

for  each  1  cent  advance  in  the  duty  on  quicksilver,  and  for  blasting 
caps  containing  more  than  1-gram  charge  the  duty  per  1,000  caps 
should  be  increased  sixty-eight  one-hundredths  cent  for  each  addi- 
tional |-gram  charge  for  each  1  cent  advance  in  the  duty  on  quick- 
silver. 

Remarks. — There  are  1.37  pounds  of  quicksilver  in  1,000  1-gram 
blasting  caps.  Much  more  quicksilver  is  consumed  in  the  manufac- 
ture of  fulminate  of  mercury  than  in  any  other  industry  in  which 
the  metal  is  used.  It  is  estimated  that  over  70  per  cent  of  the  quick- 
silver consumed  in  the  United  States  goes  into  the  manufacture  of 
fulminate  of  mercury  for  blasting  caps  and  ammunition.  The  ful- 
minate is  the  principal  explosive  ingredient  to  the  extent  of  80  per 
cent,  both  in  blasting  cap's  for  miners'  use  and  in  percussion  caps  for 
ammunition.  To  make  1,000  No.  6  caps  requires  2.78  pounds  of 
copper  and  1.38  galjons  of  alcohol. 

PARAGRAPH  1418. — MINING,  BLASTING,  OR  SAFETY  FUSES. 

WITNESSES. 
FAVORING  LOWER  DUTIES  : 

The  Sterling  Hardware  Co.  and  the  Sterling  Mine  Supply  &  Manufacturing 
Co.  (Joint  brief;  no  appearance  at  hearings.) 

Rates  suggested. — It  is  stated  that  a  reduction  of  50  per  cent  of  the 
proposed  duty  would  still  protect  the  American  manufacturer  of 
fuses. 

Remarks. — There  is  only  one  manufacturer  of  mining,  blasting,  or 
safety  fuses  in  the  United  States,  the  Ensign-Bickford  Co..  Simsbury, 
Conn.;  it  has  patented  the  necessary  machinery  for  the  manufacture 
of  the  fuse  in  question. 

PARAGRAPH  1419. — NATURAL  LEAVES.  SHRUBS,  PLANTS,  HERPS,  TREES, 
*  *  *  CHEMICALLY  TREATED,  COLORED,  DYED,  OR  PAINTED, 
N.  S.  P.  F. 

WITNESS,    AND    INTEREST    REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Hon.  Andrew  ,T.  Hickey.  M.  C.,  eighteenth  Indiana  district,  repre-entin.fr 
the  Ove  Gnatt  Co.  (Inc.),  LaPorte,  Ind.,  manufacturers  of  prepared 
foliage. 

Hearings:  Pages  4112-4115. 

("oste  and  selling  prices. — Wage?  here  are  five  to  ten  times  higher 
than  in  foreign  countries.  Domestic  manufacturers  are  under  large 
transportation  expense,  both  inland  and  ocean,  for  raw  material. 
Many  of  the  plants  used  are  natives  of  the  Old  World.  Imports  are 
now  being  made  at  prices  much  lower  than  the  domestic  cost  of  pro- 
duction ;  in  the  case  of  oak,  beech,  and  ruscus  leaves,  imported  from 
Germany  and  Italy,  50  per  cent  to  75  per  cent  lower. 

Size  of  industry. — The  industry  in  this  country  is  new.  having  been 
started  by  Mr.  Gnatt  in  1913.  At  present  more  than  2,000  employees 
are  directly  dependent  on  it,  while  many  others  are  indirectly  bene- 
fited. The  annual  consumption  of  the  more  important  classes  ap- 
proximates as  follows:  Oak  leaves.  400,000  pounds;  beech  leaves, 
150,000  pounds;  cycas  leaves  (palm  leaf  from  Japan  and  Formosa). 


474  DIGEST   OF   TARIFF    HEARINGS,    H.  R.   7456. 

3.000,000  leaves:  lycopodium,  or  ground  pine,  500,000  pounds;  ruscus 
(native  to  Italy.  Switzerland,  and  France),  400,000  pounds;  magnolia 
leaves.  1,000.000  pounds. 

Comparability. — The  domestic  industry  can  successfully  meet  the 
demands,  and  did  so  during  the  war.  when  no  imports  were  received. 

Kates  suggested. — Sixty  per  cent  to  TO  per  cent  ad  valorem  on 
American  valuation. 

Remarks. — These  articles  were  not  specifically  provided  for  in  the 
1913  tariff,  but  were  held  dutiable  under  paragraph  347  at  60  per  cent 
ad  valorem. 

Prepared  foliage  is  used  chiefly  for  funeral  purposes,  Christmas 
foliage,  baskets,  and  novelties. 

PARAGRAPH  1419. — PLUMAGE. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  RESTRICTIONS  ON  THE  IMPORTATION  OF  CERTAIN  PLUMAGE  : 

Mr.  Frederick  M.  Czaki.  representing  the  Millinery  Chamber  of  Commerce 
of  the  United  States,  New  York  City. 

Hearings:  Pages  4125-4131. 

Remarks. — The  brief  is  in  support  of  the  amendment  adding  birds 
of  paradise  to  the  class  of  plumage,  the  importation  of  which  is  pro- 
hibited, and  which  shifts  the  burden  of  proof  of  lawful  possession 
to  the  possessor  of  prohibited  plumage  in  seizure  or  forfeiture  pro- 
ceedings. 

PARAGRAPH  1419. — FEATHERS  AND  ARTIFICIAL  FLOWERS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  Jacob  de  JOIILC.  representing  the  Association   of  Flower  and   Feather 
Manufacturers  of  America,  New  York  City. 

FAVORING  LOWER  DUTIES  : 

Mr.    Samuel    Zucker,    representing    importers    of    artificial    flowers    and 
feathers,  New  York  City. 

Hearings :  Pages  4123-4125. 

Witness:  Mr.  Jacob  de  Jong,  representing  the  Association  rf 
Flower  and  Feather  Manufacturers  of  America.  Xew  York  City. 

Costs  and  selling  prices. — Mr.  de  Jong  exhibited  a  number  of  for- 
eign-made articles  showing  the  foreign  price  and  the  name  of  the 
manufacturer. 

Comparability. — The  witness  claimed  that  the  samples  exhibited 
by  Mr.  Zucker  (as  below )  were  not  articles  of  general  importation. 

Hearings:  Pages  411o— U23. 

Witness:  .Mr.  Samuel  Zucker.  representing  importers  of  artificial 
flowers  and  feathers.  Xew  York  City. 

Costs  and  selling  prices. — The  witness  left  with  the  committee  a 
number  of  exhibits  showing  foreign  ccst.  landing  price,  and  condi- 
tions under  which  the  goods  were  bought. 

Attention  was  called  to  one  exhibit,  costing  $9  a  dozen  to  lay  down, 
which  was  copied  by  a  domestic  manufacturer  and  sold  for  $5.25. 

Take,  again,  an  article  costing  $4  a  dozen  in  Germany,  with  a  60 
per  cent  duty  ($2.40)  plus  landing  charges  (60  cents)",  total,  $7  a 


DIGEST  OF   TARIFF    HEARINGS,   H.   R.    7456.  475 

dozen.  The  selling  price  of  $10.50  a  dozen,  less  customary  discount, 
makes  $9.66  a  dozen  net.  Under  the  suggested  American  valuation 
plan,  it  is  claimed  that  a  duty  of  $7.50  would  have  to  be  paid,  plus 
landing  charges  (60  cents),  making  the  total  cost  $12.10  net;  the 
selling  price  would  be  $15,  less  discount,  or  $13.80  net. 

The  Germans  have  had  about  four  advances  in  wages;  the  minute 
the  mark  decreases  the  German  raises  his  prices. 

Comparability. — Merchandise  that  can  be  imported  profitably  in 
large  quantities  in  competition  with  that  of  domestic  manufacturers 
must  be  largely  confined  to  such  articles  as  forget-me-nots,  lilacs, 
lilies,  small  fruits,  etc.  The  larger  flowers,  such  as  roses,  poppies, 
Camellias,  gardenias,  etc.,  are  more  likely  to  be  of  domestic  manu- 
facture. What  is  made  in  this  country  can  not  be  imported  at  any- 
thing near  the  home  price;  what  is  imported  can  not  be  made  here 
at  any  price. 

Rates  suggested. — The  present  rate  of  60  per  cent  based  on  foreign 
valuation  should  not  exceed  15  per  cent. 

Remarks. — It  was  stated  by  the  manufacturer  who  had  copied  the 
foreign  article  that  it  represented  an  extreme  case. 

PARAGRAPH   1420. — DRESSED,  DYED,  AND  MANUFACTURED   FURS. 

WITNESSES,  AND  INTERESTS  BEPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Brief  submitted  by  Messrs.  Samuel  Ullman  and  Edward  Fillmore  in  behalf 
of  the  Board  of  Trade  of  the  Fur  Industry  of  the  city  of  New  York, 
composed  of  the  Fur  Merchants'  Association,  Fur  Dressers  and  Fur 
Dyers'  Association,  and  the  Associated  Fur  Manufacturers  (Inc.),  and 
other  associations. 

FAVORING  LOWER  DUTIES: 

Mr.  H.  L.  Allen,  attorney,  representing  the  Furriers'  Association  of  France, 
the  Professional  Union  of  Tanners  and  Dyers  of  France  and  Belgium, 
and  the  Belgian  Union  of  Fur  Cutters. 

Hearings :  Pages  4131-4135. 

Witness :  Brief  submitted  by  Messrs.  Samuel  Ullman  and  Edward 
Fillmore  in  behalf  of  the  Board  of  Trade  of  the  Fur  Industry  of 
the  city  of  Xew  York,  and  other  associations. 

Rates  suggested. — If  the  American  valuation  plan  is  adopted,  the 
rates  provided  for  in  the  proposed  bill  would  amply  protect  the 
American  manufacturer.  In  case  the  American  valuation  plan  is 
not  adopted,  the  rates  should  be  increased  proportionately  in  order 
that  the  American  manufacturer  may  receive  the  proper  protection 
against  European  competition. 

Remarks.— ^Reference  is  made  to  a  brief  filed  with  the  Ways  and 
Means  Committee,  in  which  more  detailed  facts  are  given. 

Hearings :  Pages  4135-4143. 

Witness :  Mr.  H.  L.  Allen,  attorney,  New  York  City,  representing 
the  Furriers'  Association  of  France,  the  Professional  Union  of  Tan- 
ners and  Dyers  of  France  and  Belgium,  and  the  Belgian  Union  of 
Fur  Cutters. 

Costs  and  selling  prices. — While  a  difference  in  wages  does  exist, 
it  is  not  as  great  as  before  the  war,  and  the  output  of  the  European 
workman  is  far  below  that  of  the  American.  The  actual  labor  cost 
is  not  known. 


476  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

Size  of  industry. — According  to  statistics  given  before  the  House 
committee,  the  value  of  rabbit  skins  dyed  in  the  United  States  in 
1920  was  $203,095,  while  the  value  of  all  kinds  of  furs  dyed  during 
the  same  year  was  $52,910,589. 

Comparability. — No  rabbit  skins  are  produced  in  the  United  States 
suitable  for  the  manufacture  of  imitation  furs  or  for  the  produc- 
tion of  hatters'  furs. 

Rates  suggested. — On  paragraph  1420 :  Pelts  of  rabbits  dressed  on 
the  skin,  but  not  advanced  farther  than  dyeing,  15  per  cent  ad  va- 
lorem. Rabbit  skins  now  included  with  rare  furs  to  be  subject  to  a 
special  classification. 

On  paragraph  1421 :  Hatters'  furs,  including  fur  skins,  carroted, 
10  per  cent  ad  valorem. 

PARAGRAPH  1421. — HATTERS'  FUR. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Aaroix  Naumburg,  representing  the  hatters'  fur  industry  of  the  United 
States. 

FAVORING  LOWER  DUTIES  : 

Mr.  H.  L.  Allen,  attorney,  representing  the  Furriers'  Association  of  France, 
the  Professional  Union  of  Tanners  and  Dyers  of  France  and  Belgium, 
and  the  Belgian  Union  of  Fur  Cutters. 


Hearings :  Pages  4143-4145. 
Witness :  Mr.  Aaron  Xaumburg, 


representing  the  hatters'  fur  in- 
dustry of  the  United  States. 

Costs  and  selling  prices. — The  total  amount  of  hatters'  fur  going 
into  a  finished  hat  represents  less  than  10  per  cent  of  its  selling  price 
in -the  store. 

Size  of  industry. — The  IT  firms  presenting  the  brief  filed  by  the 
witness  represent  fully  75  per  cent  of  all  the  manufacturers  of  hat- 
ters' fur  in  the  country. 

Rates  suggested. — A  rate  of  22  per  cent  ad  valorem  on  the  basis  of 
American  valuation  or  35  per  cent  ad  valorem  on  the  foreign-value 
basis.  These  rates  are  based  on  the  assumption  that  raw  materials 
(rabbit  skins)  will  remain  on  the  free  list.  It  was  urged  that  the 
classification  of  hatters'  fur  as  provided  for  in  H.  R.  7456  be  retained, 
as  it  does  not  properly  fit  in  with  other  furs. 

Remarks. — All  of  the  raw  material  (rabbit  skins)  is  imported.  The 
skins  come  almost  exclusively  from  animals  not  indigenous  to  North 
American  climates,  nor  has  it  been  possible  to  breed  the  animals  in 
this  country  and  at  the  same  time  retain  the  commercial  character- 
istics of  the  fur  proper  (fiber). 

The  details  concerning  the  industry  were  gone  into  extensively  be- 
fore the  Ways  and  Means  Committee  and  can  be  found  on  pages 
3295-3300,  Part  V,  Hearings  on  General  Tariff  Revision,  1921. 

Hearings:  Pages  4135-4143. 

Witness:  Mr.  H.  L.  Allen,  attorney,  representing  the  Furriers' 
Association  of  France,  the  Professional  Union  of  Tanners  and  Dyers 
of  France  and  Belgium,  and  the  Belgian  Union  of  Fur  Cutters. 

(For  digest  of  testimony,  see  par.  1420.) 


DIGEST  OF  TARIFF  HEARINGS,  H.  R.  7456.  477 

PARAGRAPHS  1424  AND  1426. — HUMAN  HAIR  AND  HAIR  PRESS  CLOTH. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DITTIES  : 

Mr.  Charles  C.  Tompkins,  representing  .1.  T.  Perking  Co.   (Inc.),  Brooklyn, 
N.  Y. ;  the  Sugden  Press  Bagging  Co. ;  and  the  Oriental  Textile  Mills. 

Hearings:  Pages  4145-4148. 

Size  of  industry. — The  companies  filing  brief  have  about  $5,000,000 
invested  in  plants. 

Rates  suggested. — Raw  human  hair  to  be  given  a  rate  on  a  parity 
with  camel's  hair.  raw.  (Par.  1101,  camel's  hair,  raw,  7  cents  per 
pound.)  Human-hair  press  cloth  to  be  given  a  duty  of  50  per  cent 
ad  valorem. 

Remarks. — The  witness  states  that  all  human  hair  is  imported,  and 
that  practically  all  of  it  is  used  in  the  manufacture  of  hair  press 
cloth.  This  hair  press  cloth  is  the  principal  competitor  of  camel's- 
hair  press  cloth,  and  the  hair  should,  therefore,  be  given  a  duty  that 
would  place  it  on  a  parity  with  the  camel's  hair.  Such  a  duty  on  raw 
human  hair  would  also  justify  and  require  a  compensatory  duty  on 
hair  press  cloth  of  50  per  cent  ad  valorem. 

The  companies  represented  by  the  witness  are  manufacturers  of 
camel's-hair  press  cloth,  and  two  of  them  also  manufacture  human- 
hair  press  cloth. 

PARAGRAPH  1427. — FUR  FELT  HATS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Edward  W.  Bill,  representing  Bill  &  Cnldwell  and  William  C.  Hesse, 

wholesale  importers.     (Brief.) 
Mr.  Win.  V.  Campbell,  chairman  National  Association  of  Fur  and  Wool  Felt 

Manufacturers.      (Brief. ) 

Hearings:  Pages  4148-4153. 

Witness:  Mr.  Edward  W.  Bill.     (Brief.) 

Costs  and  selling  prices. — Costs  of  hats  sinre  1913  have  advanced 
much  faster  in  England  than  in  the  United  States.  An  English 
manufacturer  states,  in  a  cable:  "To-day's  prices  160  per  cent  over 
1913  " ;  another  states,  "  Price  of  6142  is  200  per  cent  higher  than 
October,  1913." 

The  price  to-day  of  domestic-made  hats  shows  no  such  advance 
since  the  enactment  of  the  tariff  of  1913.  One  notable  domestic  hat 
shows  to-day  an  advance  of  only  80  per  cent  over  the  price  of  1913. 
Another  well-known  make  shows  an  advance  at  to-day's  price  of  not 
more  than  33  to  40  per  cent  since  1913. 

An  Italian  manufacturer  cabled  regarding  a  representative  hat  in 
his  line :  "  Price  is  105  per  cent  higher  than  October,  1913,  on  gold 
basis." 

The  advance  on  hats  from  Czechoslovakia  runs  from  75  to  100  per 
cent,  gold  basis. 

Foreign  advances  are  even  more,  because  of  the  very  large  increase 
in  the  cost  of  packing  and  expenses  to  land  the  goods  in  America. 
The  cost  of  packing,  cases,  and  cartons  is  not  included  in  the  cost 


478  DIGEST   OF   TARIFF   HEARINGS,    H.  R.    74-56. 

price  of  imported  hats,  as  is  the  custom  on  domestic  merchandise. 
In  practice,  it  costs  $6  to  cover  expenses  and  to  land  in  New  York 
one  dozen  hats  from  Italy  or  Czechoslovakia. 

The  witness  believes  that  questions  of  exchange  are  not  to  be  con- 
sidered in  this  connection.  To  show  that  no  advantage  has  been 
gained  because  of  exchange  depreciation,  the  following  cables  were 
cited : 

"  October.  1913.  French  hat  cost  in  France  T.50  francs,  exchange 
at  par  equals  $1.45. 

"October,  1921.  The  identical  hat  cost  in  France  39.50  francs: 
exchange  at  7.50  cents  equals  $2.96." 

Every  hat  bought  abroad  must  be  bought  in  American  dollars. 

Peschel  A*elours,  1913,  quality  L,  87  kronen  (20  cents  to  a  krone) 
equals  $17.40  gold  basis.  Peschel  velours  to-day,  quality  L.  $30. 

One  domestic  maker  seems  to  have  put  a  value  of  $18  a  dozen  on 
his  name,  another  $9  a  dozen.  Knox  advertisement  sent  out  Septem- 
ber, 1921 : 

"Knox,  extra  quality,  $58.50  lined.  Also  make  this  with  mer- 
chant's name  only,  lined,  $40.50."  Stetson's  price  list : 

Fall  1921— select  $51,  chamois,  $48.  "The  chamois  quality,  which 
does  not  contain  the  Stetson  name,  has  been  reinstated  in  stiff  and 
soft  hats  at  $48  per  dozen. 

Size  of  industry. — Ratios  of  imports  to  domestic  production : 

Per  cent. 

1904 0.  32 

1909 1 .  81 

1914 1.  23 

1919  ___  .58 

Value  of  production  in  the  United  States : 

1914 $37,  000,  000 

1919 82.  745.  000 

1920  (estimated) 100,000,000 

Imports 1, 159.  000 

Exports 3, 145, 000 

Comparability. — The  claim  had  been  made  by  manufacturers  that 
the  wording  of  the  schedule  was  necessary  to  cover  the  higher-priced 
hats,  velours,  which  are  imported  in  large  part  from  Czechoslovakia. 
It  is  pointed  out,  in  reply,  that  the  domestic  manufacturers  say  the 
higher-priced  hats  are  not  made  in  this  country  to  any  great  extent, 
at  least  the  very  fine  hats  of  Austria. 

There  are  not  and  never  have  been  any  points  of  comparison  be- 
tween a  domestic  hat  and  a  foreign  hat.  They  are  entirely  dissimi- 
lar, as  the  present  duty  effectually  prevents  the  sale  of  foreign  hats 
on  a  competitive  basis. 

Rates  suggested. — Rate  not  to  exceed  45  per  cent,  based  on  foreign 
valuation.  A  compound  duty  on  fur- felt  hats  is  entirely  unworkable. 
The  straight  ad  valorem  method  of  assessment  is  easy  of  adminis- 
tration. Xo  man,  no  matter  how  expert  he  may  be,  except  the  man 
who  actually  makes  the  hat.  can  accurately  judge  the  value.  Some  of 
them  can  not  tell  within  $6  a  dozen;  others  say  within  $3  a  dozen. 
An  examiner  in  the  appraisers'  stores  will  be  called  upon  to  say 
whether  a  certain  importation  is  worth  $35.90  or  $36.10  per  dozen. 
This  means  a  difference  of  $3  in  the  duty  under  the  bill. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456. 


479 


Hearings :  Pages  4153-4154. 

Witness:  Mr.  William  V.  Campbell,  chairman  National  Associa- 
tion of  Fur  and  Wool  Felt  Hat  Manufacturers.  (Brief.) 

The  company  regards  it  as  essential  to  oppose  a  suggested  tariff 
duty  upon  raw  skins,  imported  for  the  sole  purpose  of  cutting  hat- 
ters' fur,  and  a  cognate  proposal  to  reduce  the  duty  on  cut  fur.  Hat- 
ters' cut  fur  needs  all  the  protection  that  has  been  asked  for,  as  the 
entire  cost  of  transformation  is  one  of  labor. 

The  brief  points  to  the  keen  competition  from  Italy,  Austria. 
Czechoslovakia,  France,  and  England,  and  to  the  advantages  enjoyed 
by  those  countries  in  regard  to  raw  material.  The  company  is  in 
favor  of  American  valuation  of  imports. 

PARAGRAPH  1428. — JEWELRY. 


WITNESSES,    AND   INTERESTS   REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  New  England  Marmfacturering  Jewelers'  and  Silversmiths'  Association. 
(Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.  David  J.  Gallert,  representing  novelty  jewelers,  New  .York  City. 

Hearings :  Pages  4154-4156. 

Witness :  Brief  of  the  New  England  Manufacturing  Jewelers'  and 
Silversmiths'  Association.     (Brief.) 

Costs  cmd  selling  jyrices — 


1 

eSSbtt.                            Description. 

Where  made. 

Unit. 

Actual 
cost  of 
produc- 
tion. 

Laid 
down  in 
U.S.,duty 
paid. 

i 
No.25a..    White  stone  bar  pin 

Rhode  Island  

Gross.  . 

$34.00 

No.  25b             do 

do 

$13.60 

No.  2f>a.  .    White  blue  stone  bar  pin  
No.  2(ib  do  

Rhode  Island  
Czechoslovakia.  .  . 

...do  
...do  

58.00 

18.66 

do 

do 

5.23 

do 

do 

5.00 

Each 

3  30 

No.  29b       Foreign  copv  of  No.  29a 

.    do  

1.78 

No.39a..    Imitation  ivorv  and    enamel    cigarette 
holder. 
No.39b..   Oigasette  holder  of  genuine  ivory  and 

Rhode  Island  
Germany  

Dozen... 
...do  

41.12 

24.00 

i     enamel  . 
No.  31a.  .'  Sterling  silver,  enamel  pencil,  gold  plated: 
No.31b..    Sterling  silver,  enamel  pencil,  better  than 
No.Sla. 

Rhode  Island  
Germany  

...do  
...do  

42.67 

""i2."72 

A  very  large  percentage  of  the  total  cost  of  American  production 
is  labor.  The  figures  given  in  the  case  of  the  American  articles  are 
the  bare  cost  of  production ;  in  the  case  of  the  imported  articles  they 
are  the  actual  prices  at  which  such  imported  articles  are  sold  in  the 
American  wholesale  market. 

Kates  suggested. — To  retain  unaltered  the  wording  or  classification 
of  the  jewelry  paragraph  No.  1428,  H.  R.  7456. 

Rates  of  55  and  45  per  cent  ad  valorem,  appearing  in  paragraph 
1428,  to  be  respectively  changed  to  60  and  50  per  cent  ad  valorem, 
based  on  American  valuation. 


480  DIGEST   OF   TARIFF    HEARINGS,   H.  R.   7456. 

If  the  foreign  wholesale  market  value  is  made  the  basis,  then  rates 
respectively  equivalent  to  60  and  50  per  cent  on  American  valuation. 

Per  cent 
ad  valorem. 

Jewelry,  valued  above  20  cents  per  dozen  pieces 60 

Rope,  curb,  etc.,  valued  above  30  cents  per  yard CO 

Articles  valued  above  20  cents  per  dozen  pieces,  etc GO 

Stampings,    etc 50 

Remarks. — See  Tariff  Information,  1921.  Hearings  on  General 
Tariff  Revision  before  the  Committee  on  Ways  and  Means,  Part  V. 
vpages  3327-3331.  Imitation  precious  stones,  both  white  and  colored, 
are  not  manufactured  in  this  country.  They  are  used  by  manufac- 
turers of  jewelry.  The  rates  have  been  raised  from  20  per  cent  on 
foreign  valuation  in  former  tariff  acts  to  45  per  cent  American 
valuation  in  paragraph  1249,  H.  R.  7456.  being  equivalent  to  an  in- 
crease of  125  per  cent  in  the  rate  of  duty  on  raw  material  in  the 
form  of  imitation  stones.  This,  the  brief  contends,  would  greatly 
increase  the  difficulties  of  American  manufacturers  in  meeting  the 
competition  of  countries  with  long  and  hereditary  experience  in  the 
production  of  imitation  precious  stones,  neither  made,  nor  capable 
of  being  made,  in  the  United  States. 

Hearings :  Pages  4013-4023. 

Witness :  Mr.  David  J.  Gallert,  representing  novelty  jewelers. 

Size  of  industry. — The  domestic  production  of  jewelry  in  1914  was 
a  trifle  over  $81,000,000.  In  1919  this  had  increased  to  $203.898,000. 
On  the  other  hand,  imports  for  1910  averaged  about  $1.000.000,  and 
exports  slightly  inside  that.  Manufacturers  import  the  design  in 
small  quantities  and  put  them  on  the  road.  Importation  is  practi- 
cally only  for  the  novelty  of  design  and  ideas.  The  imports  are 
chiefly  small  articles — pins  and  brooches.  Mr.  Rosenberger.  a  manu- 
facturer, of  Providence,  R.  L.  appealed  to  by  the  witness,  stated 
that  he  thought  articles  imported  for  design  were  in  the  minority, 
but  the  question  is  difficult. 

Rates  suggested. — The  rate  to  be  reduced  from  55  to  25  per  cent 
ad  valorem. 

Mr.  Rosenberger  stated  that  he  was  not  asking  for  anything  lower 
than  60  per  cent  on  American  valuation,  but  that  85  per  cent  o-n 
foreign  valuation  would  handicap  his  importing  branch  to  a  cer- 
tain extent,  and  that  his  manufacturing  branch  would  be  hampered 
by  not  getting  the  ideas  and  designs  from  Europe. 

PARAGRAPH  1429. — DIAMONDS  AND  OTHER  PRECIOUS  STONES. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  il.  G.  Monroe,  representing  the  American  Jewelers'  Protective  Associa- 
tion, New  York. 

Hearings :  Pages  4157-4161. 

Rates  suggested. — Rough  precious  stones,  free;  cut  diamonds  and 
other  precious  stones,  and  pearls.  10  per  cent  ad  valorem. 

Remarks. — The  association,  which  includes  all  the  prominent  im- 
porters of  diamonds  and  precious  stones  and  cutters  of  diamonds  in 
the  United  States,  believes  that  the  adoption  of  the  duty  recommended 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  481 

would  automatically  lower  the  value  of  their  stock  on  hand  by  10  per 
cent.  They  desire  such  reduction,  however,  in  order  that  the 'tempta- 
tion to  smuggle  precious  stones  may  be  lessened.  Smuggling  in 
precious  stones  is  easily  and  successfully  carried  on,  and  honest  im- 
porters can  not  compete  with  smuggled  merchandise. 

The  witness  recommends  that  the  "  appropriation  for  the  preven- 
tion of  fraud  against  the  customs,"  at  the  disposal  of  the  Treasury 
Department,  be  so  increased  as  to  enable  the  Secretary  of  the  Treas- 
ury to  employ  a  special  squad  of  six  men  whose  efforts  shall  be  con- 
fined to  the  detection  of  fraudulent  importations  of  precious  stones. 

He  also  requests  that  the  paragraph  providing  for  the  free  entry 
of  personal  effects  of  nonresidents  (par.  1678)  be  so  changed  as  to  pre- 
vent the  importation  by  such  persons  of  precious  stones.  Any  amount 
of  personal  effect's  may  now  be  brought  in  by  such  persons,  provided 
they  are  brought  in  without  the  intention  of  selling  them,  but  there  is 
nothing  to  prevent  their  selling  them  after  entry  without  payment 
of  duty. 

PARAGRAPH  1429;  ALSO  PARAGRAPH  350  or  SCHEDULE  3,  AND  PARA- 
GRAPHS 1403,  1411,  AND  1444  or  SCHEDULE  14. — IMITATION  PRECIOUS 
AND  SEMIPRECIOUS  STONES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.    E.   M.    Johnson,    representing   American   manufacturers   of    imitation 
pearls  and  fusible  enamels,  New  York  City. 

FAVORING  LOWER  DUTIES  : 

Brief  of  importers  of  imitation  precious  stones  or  of  precious  and  imita- 
tion precious  stones. 

Hearings:  Pages  4024-4027. 

Witness:  Mr.  E.  M.  Johnson,  representing  American  manu- 
facturers of  imitation  pearls  and  fusible  enamels,  New  York  City. 

Coftfs  and  selling  prices. —  (See  pp.  3093-3098,  part  5,  Hearings 
before  Ways  and  Means  Committee.  The  products  of  the  industry 
in  this  country  are  produced  by  skilled  labor,  receiving  high  wages. 
The  labor  cost  is  over  75  per  cent  of  the  total  production  cost. 
Abroad,  the  industry  is  what  is  known  as  a  cottage  industry  and 
the  products  are  largely  the  work  of  children. 

Size  of  industry. — An  industry7  which  the  war  really  created. 
Production  now  amounts  to  a  value  of  over  $6,060,000  a  year,  in  com- 
parison with  a  production  of  $500,000  in  1914.  The  industry  employs 
about  5,000  workers. 

Rates  suggested. — No  change  in  rates  or  phraseology  of  paragraphs 
350. 1403,  and  1411  of  H.  R.  7456  is  desired,  as  the  situation  is  covered 
and  the  rates  seem  to  be  just  and  equitable.  If  the  system  of  as- 
sessment of  ad  valorem  duties  should  be  changed,  it  is  required  that 
the  rates  given  in  these  paragraphs  be  so  translated  into  other  terms 
as  to  give  the  same  amount  of  protection. 

Paragraph  1429  to  read : 

Imitation  precious  stones,  cut  or  faceted,  imitation  semiprecious  stones, 
faceted,  imitation  half  pearls  and  hollow  or  filled  pearls  of  all  shapes,  with- 
out hole  or  with  hole  partly  through  only,  20  per  cent  ad  valorem ;  imitation 
precious  stones,  not  cut  or  faceted,  imitation  semiprecious  stones  not  faceted, 
imitation  jet  buttons,  but  polished  or  faceted;  imitation  solid  pearls  wholly 
or  partly  pierced,  mounted  or  unmounted,  40  per  cent  ad  valorem. 


482  DIGEST   OF   TARIFF    HEARINGS,   H.  R.   7456. 

Attention  was  called  to  the  fact  that  articles  which  should  have 
the  protection  of  the  same  rate  of  duty  have  two  different  rates,  40 
per  cent  in  paragraph  1403  and  45  per  cent  in  paragraph  1429.  It 
was  suggested  that  the  rate  in  paragraph  1429  be  made  40  per  cent. 

Attention  was  also  called  to  paragraph  1444  relating  to  rosaries. 
In  the  opinion  of  the  witness  any  article  which  could  be  classed  as 
a  rosary  would  be  entitled  to  come  into  this  country  by  paying  not 
more  than  30  per  cent.  This  would  permit  the  importation  of  neck- 
laces made  of  imitation  pearls  and  other  imitation  precious  stones 
with  a  cross  attached  as  rosaries,  but  after  importation  into  the 
United  States  the  cross  could  be  removed  and  such  articles  offered 
for  sale  as  regular  necklaces.  It  was  suggested  that  the  classifies, 
tion  of  the  Paj-ne-Aldrich  law  be  followed  or  that  paragraph  144-1 
be  amended  to  make  rosaries  composed  of  imitation  pearls  or  imita- 
tion precious  or  semiprecious  stones  dutiable  at  the  same  rate  as 
such  items  in  paragraph  1403. 

Hearings:  Pages  4161-4162. 

Witness :  Importers  of  imitation  precious  stones  or  of  precious  and 
imitation  precious  stones,  representing  six  firms  located  in  Providence 
and  Xew  York  City.  (Brief.) 

Rates  suggested—  The  proposed  rates  of  duty  on  diamonds  and 
other  precious  stones,  uncut ;  pearls,  not  set  or  strung ;  diamonds  and 
other  precious  and  semiprecious  stones,  cut  but  not  set,  and  suitable 
for  the  use  in  the  manufacture  of  jewelry,  are  concurred  in. 

Imitation  precious  stones,  cut  or  faceted,  imitation  semiprecious 
stone?,  faceted,  imitation  half  pearls  and  hollow  or  filled  imitation 
pearls  of  all  shapes  without  hole  or  with  hole  partly  through  only, 
20  per  cent  ad  valorem. 

Imitation  precious  stones,  not  cut  or  faceted,  imitation  semipre- 
cious stones  not  faceted,  imitation  jet  buttons,  cut,  polished,  or 
faceted,  45  per  cent  ad  valorem. 

Imitation  solid  pearls  wholly  or  partly  pierced,  mounted  or  un- 
mounted. 45  per  cent  ad  valorem. 

Remarks. — Imitation  precious  stones,  imitation  half  pearls,  and 
hollow  and  filled  imitation  pearls  are  not  made  in  this  country.  They 
are  a  necessary  raw  material  in  the  manufacture  of  jewelry.  The 
solid  or  indestructible  pearl  is  made  in  this  county. 

PARAGRAPH  1430. — EMBROIDERED  LINENS. 

* 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  W.  A.  McCleary,  representing  46  linen  importers  and  traders,  all  of 
whom,  with  one  exception,  are  located  in  New  York  City. 

Hearings :  Pages  3483-3485. 

Rates  suggested. — The  present  rate  of  60  per  cent  ad  valorem,  in 
the  act  of  1913,  to  be  maintained. 

(For  a  more  complete  abstract  of  the  brief  presented,  see  para- 
graph 1009.) 


DIGEST  OF   TARIFF    HEARINGS,   H.   R.    74-56.  483 

PARAGRAPHS  1430  AND  912 — LACES  AND  EMBROIDERIES. 


WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Albert  L.  Waitzfelder,  representing  the  Braid  Manufacturers'  Asso- 
ciation. 

Mr.  Charles  A.  Bihler,  representing  the  United  States  Lace  and  Embroidery 
Manufacturers'  Association  and  the  American  Shuttle  Embroiderers  Man- 
ufacturers' Association. 

Mr.  Henry  X.  Berry,  representing  the  Richmond  Lace  Works  and  the 
Lace  Manufacturers'  Association  of  New  England. 

Mr.  Thomas  J.  Diamond,  representing  American  Bobbinett  Co.,  the  Brom- 
ley Manufacturing  Co.,  and  the  Liberty  Lace  and  Netting  Works. 

Mr.  Hugo  N.  Schloss,  representing  the  Liberty  Lace  and  Netting  Works. 

Mr.  H.  A.  Phillips,  representing  the  American  Lace  Manufacturers'  Asso- 
ciation. 

Mr.  Joseph  W.  Stein,  representing  the  Tariff  Committee  of  American  Cotton 
and  Linen  Handkerchief  Manufacturers. 

The  Narrow  Fabric  Co.,  Reading.  Pa.     (Brief.) 

The  Oswald  Lever  Co.  (Inc.),  Philadelphia,  Pa.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

Mr.  Lemuel  J.  France,  representing  the  Lace  and  Embroidery  Association 

of  America.* 

Mr.  David  E.  Schwab,  representing  himself. 
Mr.  Max  Neuberger,  representing  himself. 

Mr.  Thomas  M.  Lane,  representing  manufacturers  and  importers  of  Ma- 
deira embroideries. 

Hearings:  Pages  4162-4166. 

Witness :  Mr.  Albert  L.  Waitzfelder,  representing  the  Braid  Man- 
ufacturers' Association. 

Costs  and  prices. — According  to  a  report l  of  wages  in  a  manufac- 
turing district  in  Germany — the  largest  braid  manufacturing  dis- 
trict in  the  world — the  price  paid  for  day  labor  is  equivalent,  at  the 
present  rate  of  exchange,  to  3.1  cents  per  hour  and  for  female  labor 
to  2.3  cents  per  hour.  In  the  United  States  the  wages  for  similar 
labor  are.  for  males  50  cents  per  hour  and  for  females  35  cents  per 
hour.  The  labor  cost  in  these  goods  is  about  61  per  cent  of  the  total 
cost.  The  average  selling  price  in  Germany  of  the  samples  submitted 
is  equivalent  to  $3.42  per  pound.  The  cost  to  make  the  same  braids 
in  the  United  States  is  approximately  $8  per  pound.  On  braids  made 
from  metal  thread,  the  foreign  cost  is  $1.54  per  pound  and  the  do- 
mestic cost  $4.05  per  pound. 

Foreign  selling  price  of  braids  made  from  artificial  silk.a 


Article  No. 

Foreien 
selling 
price,  per 
ligne. 

Weight 
per  ligne. 

Foreign 
selling 
price,  per 
pound. 

3059 

Cents. 
31 

Ounces. 
1  40 

3060  

21 

1  00 

3  36 

3061                  

52 

2  63 

3  18 

3063 

31  5 

1  40 

3  60 

Total 

Average  per  pound  

3.42 

»  Research  Report  No.  40,  National  Industrial  Conference  Board,  p.  701. 
1  Samples  filed  with  Ways  and  Means  Committee 


481 


DIGEST   OF   TARIFF    HEARINGS,,   H.  R.   7456. 


Domestic  costs  of  braids  made  from  artificial  silk  compared  with  landed  cost  of 
foreign  braids. 


Domestic. 

Foreign. 

$2.75 

$1.90 

.45 

.32 

Cost  of  material,  1-pound  braid  

3.20 

2.22 

4.80 

1.18 

8  00 

3  40 

Domestic  costs  of  braids  made  from  metal  threads  compared  imth  landed  cost 
of  foreign  braids. 


Cost  of  metal  threads  per  pound  (duty,  10  cents  per  pound) . 
35  per  cent  on  domestic  value 

Landed  cost  per  pound  of  metal  thread 

1  pound  braid  takes  1 J  pounds  metal  thread 

Cost  of  material,  1-poand  braid 

Cost  of  conversion 


Total  cost  per  pound 


Domestic.  Foreign. 


$0.80    

.59    


$0.80 
.13 


4.05  I 


One-fourth  domestic.     Difference  $2.51  per  pound. 


35,000 
in- 


Size  of  industry. — There  are  employed  approximately  35,' 
people  in  the  industry,  and  about  an  equal  number  in  subsidiary 
dustries. 

Kates  suggested. — That  the  rate  on  braids  be  changed  from  45  per 
cent  ad  valorem  to  60  per  cent,  based  on  American  valuation. 

Remarks. — It  was  stated  that  the  industry  is  "working  less  than  50 
per  cent  of  its  capacity.  "  Large  orders  are  being  placed  by  Ameri- 
can buyers  in  Germany  because  they  are  able  to  land  goods  at  very 
much  less  than  they  can  be  purchased  and  sold  for  in  this  country." 

Hearings :  Pages  4166^174. 

Witness:  Mr.  Charles  A.  Bihler,  representing  the  United  States 
Lace  &  Embroidery  Manufacturers'  Association  and  the  American 
Shuttle  Embroiderers  Manufacturers'  Association. 

Costs  and  selling  price. — The  following  table  was  submitted,  show- 
ing the  wages  paid  since  November  1,  1921,  and  at  present  in  the 
.United  States,  Germany,  and  Switzerland : 

[Mark-  J  cent.    Franc- 19.3  cents.) 


United  States, 
47-hour  week. 

Germany.  46-hour      f 
week. 

>witzerlan 
we 

Skilled  stitcher  

Watcher 

per  week.. 
do 

$42.50-$50.00 
17.00-  24.00 
13.00-  14.50 
23.  00-  25.  00 
50.  00-  60.  00 

Marks. 
400-500 
250-300 
200 
250-350 
600-800 

$2.00-$2.50  i 
1.25-  1.50  i 
1.00  ! 
1.25-  1.75  j 
3.00-  4.00  i 

Francs. 
50 
25 
20 
28 
75 

Shuttler  

do  

Mender  

..  .do.... 

do 

$9.fi5 
4.^3 
3.86 
5.40 

14.48 


Size  of  industry. — Located  in  14  States.  The  witness,  appearing 
in  the  interest  of  manufacturers  of  lace  embroideries,  gold  and  silver 
embroideries,  embroideries  and  nets,  etc.,  general  dress  novelties, 
stated  that  the  production  last  year  approximated  $25,000,000  in 
value. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456.  485 

Rates  suggested. — That  embroideries  be  placed  in  the  same  classi- 
fication as  laces,  and  that  the  duty  be  placed  at  55  per  cent  ad  va- 
lorem on  the  American  valuation  basis.  On  the  foreign  valuation 
the  equivalent  would  be  115  per  cent. 

Remarks. — The  witness  stated  that  the  industry  is  now  85  per 
cent  idle,  due  chiefly  to  importations  and  not  to  general  depression. 

Hearings :  Pages  4185-4190. 

Witness:  Mr.  Henry  N.  Berry,  representing  the  Richmond  Lace 
Works  and  the  Lace  Manufacturers'  Association  of  New  England. 

Size  of  industry. — The  association  comprises  an  investment  of  be- 
tween $2,000,000  and  $3,000,000. 

Comparability. — The  witness  cited  several  patterns  manufactured 
by  his  company  selling  at  $2.80,  $4.10,  $4.50,  and  $5.85,  and  stated 
that  exactly  identical  patterns  manufactured  in  Germany  are  being 
offered  at  $1.80,  $2.15,  $3,  and  $4,  respectively,  the  unit  in  each  case 
being  the  gross.  These  are,  in  each  case,  the  prices  to  the  whole- 
saler. 

Rates  suggested. — On  laces  at  least  60  per  cent  on  American  valu- 
ation. The  witness  would  regard  the  imposition  of  an  equivalent 
foreign  valuation,  say  140  per  cent,  as  not  businesslike  and  as  likely 
to  entail  manipulation  of  invoices. 

Remarks. — The  business  is  not  running  at  full  capacity  now,  due 
largely  to  import  competition. 

The  witness  requests  American  valuation  as  the  basis  for  the 
assessing  of  the  duty,  because  with  the  equivalent  rate  on  foreign 
valuation  (130  or  140  per  cent)  the  market  would  tend  to  be  unset- 
tled, the  goods  coming  from  different  foreign  countries  with  differ- 
ent prices.  With  American  valuation  the  duty  would  be  uniform. 

The  lace  in  which  Mr.  Berry  is  interested  is  that  manufactured  on 
the  Lever  go-through  machine. 

Hearings :  Pages  4205-4206. 

Witness:  Mr.  Thomas  J.  Diamond,  representing  the  American 
Bobbinett  Co.,  Newburgh,  N.  Y. ;  the  Bromley  Manufacturing  Co., 
Philadelphia,  Pa. ;  and  the  Liberty  Lace  and  Netting  Works,  New 
York  City.  (Brief.) 

Comparability. — Appended  to  the  brief  is  a  sample  of  35-hole 
"  Bretonne  Net,"  made  with  40's  single  yarn  in  the  bobbin  and  80's 
two-ply  in  the  warp.  The  domestic  cost  to  make  is  25.10  cents  per 
square  yard.  Profit  and  distribution  require  a  selling  price  of  29.81 
cents.  "Similar  nets  can  be  imported  from  Nottingham,  England, 
for  12.37  cents  (exchange  $3.60)  and  from  Saxony,  Germany,  at 
about  one-third  of  the  English  price. 

Rates  suggested. — Sixty  per  cent  on  American  valuation,  equiva- 
lent to  141  per  cent  on  Nottingham  value  and  about  400  per  cent  on 
German  value. 

Remarks. — It  is  necessary  to  import  the  yarn  for  the  manufac- 
ture of  these  finer  grade  goods,  as  the  finer  yarns  are  not  spun  here. 
The  yarns  are  dutiable  and  the  revenue  derived  from  them  would 
equal  that  which  would  be  obtained  from  importations  of  the  fin- 
ished net. 

Hearings :  Pages  4190-4199. 

Witness:  Mr.  Hugo  N.  JSchloss,  representing  the  Liberty  Lace  & 
Netting  Works,  New  York  City. 

77134_22 32 


486  DIGEST   OF   TARIFF   HEARINGS,   H.  R.    7456. 

Costs  and  selling  pieces. — The  witness  referred  to  exhibits  shown 
by  Mr.  Schwab,  which  the  latter  claimed  were  made  by  the  witness's 
concern  and  sold  for  $1.50  per  yard.  The  witness  stated  that  these 
goods,  made  from  artificial  figures,  were  originally  imported  from 
France  at  $4.50,  $5,  and  $6  a  yard.  They  are  a  distinct  business 
novelty.  The  articles  come  to  this  country  and  are  put  on  sale  at 
a  very  high  price,  and  sometimes  the  profit  put  on  by  the  foreign 
manufacturer  was  so  tremendous  that  domestic  competition  was 
possible.  The  firm  has  commercialized  the  article,  reducing  qualities, 
making  sometimes  the  same  pattern  and  sometimes  similar  patterns, 
and  are  selling  these  goods  to-day  at  $1.50  per  yard,  permitting  the 
importer  to  make  his  profit  25  per  cent. 

A  warper  earns  in  Lyons,  France.  $6.50,  in  this  country  $42,  wages 
in  France  being  converted  at  the  current  rate  of  exchange.  The 
witness  does  not  agree  with  Mr.  Schwab's  method  of  computing  for- 
eign cost  on  an  article  selling  for  $6  in  the  domestic  market  and 
dutiable  at  60  per  cent  on  American  valuation ;  $6  minus  ($3.60  duty 
plus  $1.50  profit  and  overhead  plus  9  cents  packing,  etc.)  equals 
$0.81  foreign  cost. 

Mr.  Schloss's  method,  as  explained  to  the  committee,  would  be : 

Per  cent. 

100=American  valuation. 
60= Duty,  American  valuation. 

40=Foreign  cost,  importers'  profit  and  charges. 
60-=-40  per  cent=150  per  cent  on  foreign  valuation. 

In  China,  where  lace  is  made  by  hand,  it  is  sold  by  the  Chinese 
manufacturer  at  6  cents  a  yard,  of  which  4  cents  represents  labor. 
With  a  48-hour  week  wages  would  amount  to  64  cents  as  against  $50 
to  $60  to  machine  workers  in  the  United  States. 

The  witness's  firm,  formerly  large  producers  of  veiling,  is  now 
entirely  out  of  that  business.  Dots  are  put  on  by  hand  and  cost 
about  60  cents  a  thousand  dots  in  this  country.  Veilings  are  landed 
here  to-day  in  large  quantities  at  20  to  21  cents  per  yard,  containing 
about  1,500  or  1,600  dots.  The  retail  price  is  somewhere  between  85 
cents  and  $1  a  yard.  The  article  made  by  machine  is  somewhat 
like  it  and  costs  about  324  cents  a  yard  to  make. 

Size  of  industry. — The  firm  began  making  Levers  lace  in  1909  and 
1910. 

Comparability. — The  Calais  manufacturer  produces  art  goods — 
a  more  elegant  and  higher  quality  of  merchandise.  All  of  the  veil- 
ing that  has  been  selling  on  a  large  scale  is  what  is  called  Chenille 
veiling. 

Rates  suggested. — Sixty  per  cent  on  American  valuation,  which, 
as  figured  by  the  witness,  is  equal  to  150  per  cent  on  foreign  valua- 
tion. The  words  "  whether  finished  or  unfinished  "  should  be  in- 
serted, as  lace  is  very  often  imported  in  the  raw  state  or  in  an  un- 
sewed  condition. 

Hearings :  Pages  4200-4202. 

Witness:  H.  A.  Phillips,  representing  American  Lace  Manufac- 
turers' Association. 

Costs  and  prices. — The  difference  in  cost  between  the  United  States 
and  European  countries  is  entirely  due  to  the  great  differences  in 
wages,  illustrated  by  the  following  tables  in  a  brief  of  the  association. 


DIGEST  OF   TARIFF   HEARINGS,   H.   R.    7456.  487 

Comparative  union  wage*  in  Lyou  and  Neic  York,  per  week  of  .'f8  hours. 


Liberty  lace  and  netting 
works. 

Lyon,  France. 

New  York. 

Plain  net  weavers...                           .             

$9.00 
9.00 
6.50 
6.50 
5.40 
6.00 

$50.00-$55.00 
55.00-  60.00 
42.00 
30.00-  35.00 
22.00 
30.00-  35.00 

Lace  weavers  

Warpers  

Brass  bobbin  winders  

Silk  winders 

Threaders 

Comparative  icayets  in  Nottingham  and  New  York. 


Libertv  lace  and  netting 
works. 

Nottingham, 
England. 

New  York. 

Day  work,  per  hour  $0.  18 

$0.69 
1.30 
.40 
.40 
.50 
.30 

.10 
25.00 

15.00 
25.00 
50.00-80.00 

Brass  bobbin  winding,  per  thousand.  .                        .12 

Threading,  per  thousand  .15 

Mending:    Y                '  ^ 
Per  rack  .03 
250  racks                                                                                                                              7.  50 

Draftsman,  per  week: 
Apprentice                                    6.  00 

j 

The  brief  also  cites  the  following  "Examples"  in  support  of  the 
association's  belief  that  the  rate  of  45  per  cent  on  American  valua- 
tion will  not  afford  sufficient  protection  to  permit  the  American  in- 
dustry to  continue: 


Selling 
price  of 
American 
manufac- 
turer. 

Sg  *=a 

rnTnX-    »£  gd§ty 
turer.         required. 

1    Veiling 

Cents. 
7  64 

Cento.         Per  ctnt. 
"1  42                     68 

do 

20  80 

7  3U                     64 

do 

19  38 

5  28                     73 

4    Veiling 

164  40 

1U  ^7                       88 

5    Veiling 

do     ' 

5  53 

1  26                     77 

6.  Valenciennes  lace  
7.  Valenciennes  lace  

per  12  vards  .  . 
".do.... 

107.00 
40.00 
56  00 

31.00                     71 
12.00                     70 
17  00                     69 

do 

71  00 

22  00                     69 

do  

38* 

12.00                     69 

11.  Valenciennes  lace  

do.... 
do 

5000 
146  00 

15.00                     70 
40  00                     72 

do 

30  00 

11J                         61 

14.  Valenciennes  lace  
15.  Valenciennes  lace  

do.... 
do.... 
do 

38.00 
45.00 
58  00 

14.  4                       62 
17.3                       61 
23  00                     60 

1"    V'llp'ioip'irp*;  larp 

do 

70  00 

28  8                       59 

per  144  yards.. 

$S.95 

$4.20                     58 

19   Oluny 

do 

21  65 

9  36                     57 

do 

13  10 

4  >;s                 m 

21.  And  lilet  
22    Laces 

do.... 
do      . 

6.74 
5  95 

2.55                     62 
3  00                     49 

Averaee  

6« 

488  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Size  of  the  industry.— Prior  to  1909  there  were  in  the  United  States 
83  Levers  or  go-through  machines  and  no  circular  machines.  To-day 
there  are  600  Levers  or  go-through  lace  machines  and  1,000  circular 
lace  machines  so  engaged. 

There  are  9.900  Levers  or  go-through  lace  machines  in  England, 
France,  and  Germany,  and  approximately  50,000  circular  lace  ma- 
chines in  Germany. 

The  investment  in  the  United  States  is  $21,000,000,  giving  oppor- 
tunity for  the  employment  of  approximately  8,000  people. 

Rates  suggested. — The  rate  to  be  increased  from  45  per  cent  Ameri- 
can valuation  to  60  per  cent  American  valuation. 

Hearings :  Pages  3430-3434. 

Witness:  Joseph  W.  Stein,  representing  the  American  manufac- 
turers of  cotton  and  linen  handkerchiefs,  New  York  City.  (Brief.) 

Rates  suggested. — Cotton  handkerchiefs  and  mufflers  composed  of 
cotton  cloth,  in  the  piece  or  otherwise,  finished  or  unfinished,  if  em- 
broidered in  any  manner  with  an  initial,  letter,  monogram,  or  other- 
wis.e.  by  hand  or  machinery,  or  if  tamboured  or  appliqued  or  scal- 
loped, or  if  trimmed  wholly  or  partly  with  lace  or  with  tucking  or 
insertion,  shall  pay  a  duty  of  42£  per  cent  ad  valorem.  This  to  form 
part  of  paragraph  917.  If  foreign  valuation  is  retained  then  a  75 
per  cent  rate  of  duty  is  asked. 

Comparability. — The  brief  states  that  Great  Britain  is  the  greatest 
competitor  in  cotton  and  linen  handkerchiefs  and  Switzerland  in 
embroidered  goods.  The  domestic  production  cost  is  double  that  of 
Great  Britain,  and  stitching  costing  30  cents  here  is  turned  out  for 
about  16  cents  in  Switzerland. 

Hearings :  Pages  3398-3400. 
.  Witness:  The  Narrow  Fabric  Co,  Reading,  Pa.     (Brief.) 

The  brief  directs  attention  to  the  1920  platform  of  the  Republi- 
can Party  and  to  certain  schedules  in  H.  R.  7456,  suggesting  that 
the  rates  proposed  in  the  latter  be  brought  into  closer  harmony  with 
the  former. 

Comparability. — Accurate  first-hand  information  shows  that  Ger- 
man braiders  earn  280  marks  per  week — at  the  then  rate  of  exchange 
equivalent  to  about  $3.50  per  week.  This  rate  compares  with  $25 
to  $40  per  week  paid  in  the  company's  factory.  It  is  urged  that 
the  proposed  rates  in  paragraph  912  do  not  begin  to  cover  this  dis- 
crepancy. Harmful  competition  may  also  be  expected  from  Japan, 
Belgium,  and  Italy. 

Further  data  on  prices  include  quotations  from  German  firms  on 
rickrack  braids  from  which  tables  on  page  3399  were  compiled. 
The  figures  show  plainly  the  disadvantage  under  which  the  com- 
pany labors  in  competing  with  foreign  manufacturers. 

Witness  :  The  Oswald  Lever  Co.  (Inc.) ,  Philadelphia,  Pa.  (Brief ; 
no  appearance  at  hearings.) 

Renuirl's. — This  concern  manufactures  a  special  machine  for  the 
lace  trade,  used  in  making  an  imitation  of  hand-made  laces,  commonly 
called  Cluny  or  Barmen  lace.  Orders  for  these  machines  have  been 
canceled  and  thousands  of  dollars  worth  of  machinery  have  been  left 
on  the  company's  hands,  owing  to  the  dumping  of  this  line  of  lace 
from  Germany  on  the  New  York  market.  Other  laces  have  been 
reclassified  in  the  emergency  tariff,  and  the  question  is  asked  why 
these  laces  have  been  left  out. 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.    7456.  489 

Hearings :  Pages  4175-4181. 

Witness:  Mr.  Lemuel  J.  France,  representing  the  Lace  and  Em- 
broidery Association  of  America. 

Hates  suggested. — The  witness  is  opposed  to  the  American  valua- 
tion plan.  It  is  impossible  to  suggest  a  rate  for  laces  and  embroider- 
ies on  that  basis  equivalent  either  to  the  present  or  the  Payne- Aldrich 
rate.  He  suggests  retention  of  the  present  duty  of  60  per  cent  on 
foreign  valuation  and  believes  that  the  proposed  rate  on  laces  of  45 
per  cent  on  American  valuation  is  equivalent,  on  foreign  values,  to 
rates  ranging  from  123  to  218  per  cent. 

Remarks. — Many  members  of  the  association  manufacture  in  this 
country  as  well  as  import  laces,  embroideries,  and  similar  lines,  and 
many  more  handle  domestic  lines  of  such  merchandise. 

While  a  condition  of  idleness  in  this  industry  now  exists  in  this 
country,  such  condition  also  exists  in  Switzerland,  and  is  due  to 
change  of  fashion  and  general  economic  causes,  and  not  to  foreign 
competition. 

An  increased  rate,  while  it  would  afford  protection  against  German 
goods,  would  shut  out  imports  from  other  countries.  To  meet  these 
conditions.  Mr.  France  asks  wrhy  it  should  not  be  possible  and  feasible 
to  provide  for  a  duty  additional  to  the  fixed  rate,  the  size  of  it  to 
depend  on  the  extent  of  depreciation  of  currency  of  the  country  from 
which  the  goods  were  exported,  or,  in  the  case  of  indirect  shipments, 
the  country  of  origin.  Such  a  duty  could  be  provided  for  with  a 
further  proviso  that  it  would  be  levied  or  not,  in  the  discretion  of  the 
Secretary  of  the  Treasury  according  as  he  might  find  that  American 
industry  was  being  injured  by  importations  because  of  such  de- 
preciation. 

Hearings :  Pages  4181-4184. 

Witness :  Mr.  David  E.  Schwab,  New  York  City. 

Comparability. — Samples  w-ere  shown  by  the  witness  of  domestic 
articles  with  relative  similar  articles  of  foreign  make.  The  prices 
were  $1.50  for  domestic  and  $2.50  for  foreign;  $1.50  and  $2.50  for 
domestic  and  $4  for  foreign ;  $0.75  for  domestic  and  $1.05  for  foreign. 

Rates  suggested. — The  witness  opposes  the  American  valuation 
plan  and  advocates  the  retention  of  present  rate  and  foreign 
valuation. 

Remarks. — The  witness  denied  that  he  owned  a  factory  in  Austria, 
as  alleged  by  a  previous  witness.  He  had  owned  one,  but  it  was 
scrapped  in  1911  or  1912.  To  illustrate  the  effect  of  60  per  cent  ad 
valorem  on  American  valuation,  he  stated  that  the  selling  price  would 
include  the  duty.  60  per  cent  of  the  selling  price;  profit.  25  per  cent 
on  the  selling  price  being  considered  a  fair  average  to  include  over- 
head, etc..  and  packing  and  transportation  charges.  H  per  cent :  a 
total  of  86J  per  cent  of  the  selling  price  for  duty,  profit,  and  expense, 
which  would  leave  only  13^  per  cent  to  represent  the  cost.  The  sell- 
ing price  in  this  country  would,  therefore,  of  necessity,  be  at  least 
six  times  [sic]  the  cost  of  the  article. 

There  is  no  industry  established  in  Germany  with  the  Levers  go- 
through  machine,  but  a  different  type  of  goods*  of  this  class  is  manu- 
factured there. 


490  DIGEST   OF   TARIFF    HEARINGS,    H.   R.   7456. 

Hearings :  Pages  4184-4185. 

Witness:  Mr.  Max  Xeuberger. 

Rates  suggested. — Retention  of  present  rate  and  foreign  valuation. 

Remarks. — With  reference  to  statements  that  there  are  many  idle 
machines  in  this  country,  the  witness  states  that  this  is  usually  true 
all  over  the  world,  as  laces  and  embroideries  are  subject  to  fashion, 
and  have  not  been  in  style  or  demand. 

Hearings :  Pages  4202-4205. 

Witness :  Mr.  Thomas  M.  Lane,  representing  manufacturers  and 
importers  of  Madeira  embroideries. 

Costs  and  selling  prices. — A  brief  submitted  by  the  witness  gives 
this  illustration  of  the  application  of  a  22^  per  cent  rate,  based  on 
American  valuation,  of  a  typical  article  selling  for  $10  in  the  United 
States  and  costing  i;3.75  in  Madeira: 

Foreign  price $3.75 

Duty  of  60  per  cent  on  foreign  value  of  $3.75,  or  at  22£  per  cent  on 

American  selling  price  of  $10 2.25 

Landing  charges  (including  freight,  insurance,  customhouse  entry 

fee,  consular  fee)  and  packing  charges .50 

Overhead  in  United  States.  20  per  cent  on  the  selling  price 2.00 

Profit--.  1.50 


10.00 

Comparability. — Madeira  embroideries  are  absolutely  noncompeti- 
tive  with  anything  manufactured  in  this  country  in  any  fair  sense. 
They  are  a  native  product  of  Madeira,  purely  handwork — no  machine 
work  whatever — obtainable  only  in  limited  quantities,  and  could 
not  be  commercially  produced  in  commercial  quantities  except  by  a 
class  of  labor  found  among  relatively  primitive  people. 

Rates  suggested. — The  proposed  rate  of  37£  per  cent  will  have  to 
be  materially  reduced  if  the  American  valuation  plan  is  retained. 
The  highest  rate  which  this  product  will  bear  on  the  American  valua- 
tion basis  is  22^  per  cent,  equivalent  to  60  per  cent  on  foreign  valua- 
tion at  the  normal  ratio  between  foreign  and  domestic  prices.  (See 
table  above.)  The  37^  per  cent  rate  would  amount  to  about  135 
per  cent  on  foreign  valuation.  Machine-made  embroidery  may  re- 
quire a  different  treatment,  in  which  case  a  separate  classification 
could  be  made  for  articles  produced  exclusively  by  hand. 

Remarks. — American  capital  has  been  very  largely  invested  in 
Madeira  and  controls  75  per  cent  of  the  production.  In  a  brief  filed 
with  the  committee  on  July  27,  1921,  protest  was  made  against  the 
adoption  of  the  American  valuation  plan. 

The  second  brief  recapitulates  parts  of  the  Republican  national 
platform  of  1908  and  1920.  pledging  the  party  to  the  policy  of  pro- 
tection. In  the  former,  protection  was  defined  as  '"  the  imposition 
of  such  duties  as  will  equal  the  difference  between  the  cost  of  produc- 
tion at  home  and  abroad,  together  with  a  reasonable  profit  to  Ameri- 
can industries.'*  The  brief  includes  the  two  following  tables,  show- 
ing how  seriously  the  company  would  be  affected  by  the  rates  of 
duty  proposed  in  H.  R.  7456 : 

A  further  brief,  dated  December  1,  1921,  states  that  the  rates  pro- 
posed in  H.  R.  7456  are  distinct  reductions  from  the  present  rates, 
and  if  enacted  into  law  would  work  a  serious  hardship  to  domestic 
manufactures  of  boot,  corset,  and  shoe  lacing.  The  greatest  compe- 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  491 

tition  comes  from  Germany  and,  to  a  less  extent,  from  Japan,  Bel- 
gium, and  Italy.  Even  if  German  wages  advance  to  pre-war  rates, 
the  wages  paid  in  the  United  States  would  still  be  more  than  100  per 
cent  higher. 

Rickrack  braids  constitute  one  of  the  principal  products  of  the  com- 
pany. If  the  45  per  cent  rate  proposed  in  H.  R.  7456  becomes  a  law,  it 
wilfr  be  impossible  for  manufacturers  here  to  meet  German  competi- 
tion. The  brief  gives  detailed  figures  of  domestic  production  costs 
and  the  landed  costs  of  various  imported  braids. 

A  salesman  of  the  Narrow  Fabric  Co.  was  shown  laces  purchased 
in  Germany  by  a  New  Orleans  firm  for  18,  15,  22,  up  to  35  cents 
per  dozen  yards  as  against  ?.4,  48,  57,  and  87  cents  of  the  witness's 
firm.  It  was  stated  that  the  German  prices  included  the  duty  and 
everything. 

Rates  suggested. — Rickrack  braids  are  dutiable  under  the  act  of 
1913  at  60  per  cent  and  under  H.  R.  7456  at  45  per  cent.  It  is 
claimed  that  this  reduction  should  not  be  made,  but  that  the  existing 
rate  of  duty  should  stand.  The  proposed  rate  of  45  per  cent  on  laces 
is  inadequate.  The  measure  of  protection  should  be  to  equalize  the 
cost  of  production  at  home  and  abroad. 

PARAGRAPH  1431. — GLOVE  LEATHER. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  A.  R.  White,  representing  the  fine  glove-leather  manufacturers,  Glov- 
ersville,  N.  Y. 

Hearings :  Pages  4206-4210. 

Costs  and  selling  prices. — In  a  brief  supplementing  the  witness's 
testimony,  it  is  stated  that  labor  is  the  principal  element,  in  the 
difference  between  the  cost  of  producing  glove  leather  in  this  coun- 
try and  in  Europe.  In  order  to  produce  good  leather,  it  is  necessary 
to  have  the  greater  part  of  the  work  done  by  hand  labor.  Not  only 
are  German  wages  at  least  50  to  60  per  cent  lower  than  in  this  coun- 
try for  corresponding  work,  but  hours  are  longer  there  and  women 
and  apprentices  are  used  much  more  than  here.  The  American 
manufacturer  also  has  to  pay  more  for  his  dyes  and  chemicals. 

Size  of  industry. — There  are  about  40  fine  glove-leather  manufac- 
turers in  this  country.  The  value  of  the  output  is  between  five  and 
six  million  dollars  a  year.  During  1919,  the  industry  employed  2,500 
men  at  average  wages  of  $32.50  per  week.  Most  of  the  establish- 
ments are  in  Fulton  County,  N.  Y. 

Rates  suggested. — Thirty  per  cent  on  foreign  valuation  and  20 
per  cent  on  American  valuation.  It  is  not  believed  that  this  rate 
would  be  prohibitive. 

The  varieties  of  fine  glove  leather  are  glace,  lambskin,  nappa-tan, 
freized  mocha  and  suede,  and  chamois.  Those  imported  into  the 
United  States  come  either  colored,  in  the  white,  or  in  the  crust. 
The  words  "  in  the  white  "  and  "  in  the  crust "  should  be  contained 
in  the  tariff  provision,  in  order  that  the  Government  may  not  be 
deprived  of  the  fixed  rate  of  duty  by  having  the  importer  declare 
that  such  leather  "  in  the  white  or  "  in  the  crust "  has  been  im- 


492  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

ported  for  purposes  other  than  used  in  the  manufacture  of  fine 
gloves. 

Remarks. — This  industry  is  at  a  disadvantage  with  its  foreign 
competitors  in  the  matter  of  raw  material.  All  the  skins  from 
which  this  leather  is  made  have  to  be  imported  into  the  United 
States,  while  France,  England,  Italy,  and  Germany  produce  the 
skins  or  are  near  the  source  of  supply.  Italy  formerly  manufac- 
tured but  little  fine  glove  leather  coming  here,  but  the  records  show 
that  in  1920  about  $1,000,000  worth  of  Italian  glove  leather  was 
imported  into  this  country.  The  business  of  manufacturing  fine 
glove  leathers  has  been  developing  under  the  encouragement  given 
by  earlier  tariffs. 

PARAGRAPH  1432. — LEATHER  GOODS. 
WITNESSES,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Samuel  F.  Leber,  attorney,  and  Mr.  K.  Kaufman,  representing  K.  Kauf- 
man &  Co.,  manufacturers  of  leather  bags,  suitcases,  etc.,  Newark,  N.  J. 

Hearings:  Pages  4210-4214. 

Witness:  Mr.  Samuel  F.  Leber,  attorney. 

Costs  and  selling  prices. — The  witness  cited  instances  of  under- 
selling by  German  and  British  makers.  A  brief  amplifies  data  in 
this  connection  and  states  that  since  1914  the  wages  paid  in  the 
Kaufman  factory  have  increased  from  100  to  150  per  cent;  within 
the  last  year  .reductions  have  amounted  to  only  10  per  cent  and 
overhead  expenses  are  still  high.  Leather  luggage  is  made  prin- 
cipally by  hand  labor.  European  labor  is  cheaper  than  American 
labor  by  more  than  the  amount  of  duty  proposed  in  the  present  bill. 
If  a  duty  is  levied  on  leather  the  cost  of  material  will  be  increased. 

Rates  suggested. — Sixty  per  cent  ad  valorem  on  nonfitted  bags  and 
cases  (foreign  valuation).  Duties  are  levied  by  the  proposed  bill 
on  many  articles  used  in  the  manufacture  of  these  cases,  namely, 
metal  locks  and  frames,  silk  linings,  cotton  linings,  sewing  threads, 
fiber  board,  celluloid  fittings,  cut-glass  fittings  with  gilded  metal 
tops,  mirrors,  brushes,  scissors,  etc. 

The  above  rates  have  been  recommended  after  conference  with 
many  manufacturers  of  leather  luggage. 

Remarks. — Ocean  freight  rates  have  gone  down,  adding  to  the 
danger  of  foreign  competition  in  leather  goods.  There  is  keen  com- 
petition among  domestic  manufacturers  in  this  line  of  goods. 

Hearings :  Pages  4214^-4217. 

Witness:  Mr.  K.  Kaufman,  representing  K.  Kaufman  &  Co., 
Newark,  X.  J. 

Supplementing  the  statement  made  by  his  attorney,  Mr.  Samuel 
F.  Leber,  Mr.  Kaufman  said  that  the  American  valuation  plan 
would  be  objectionable  because  of  the  difficulty  in  securing  equitable 
administration. 

He  also  emphasized  the  high  cost  of  marketing  the  product  in 
this  country  as  compared  with  the  low  expenses  of  foreign  manufac- 
turers at  Auerbach,  Germany,  for  example,  who  practically  sell  their 
goods  "  over  the  counter  "  to  American  buyers  who  go  there. 


DIGEST  OF   TARIFF    HEARINGS,   H.   R.   7456.  493- 

PARAGRAPH  1433. — LEATHER  GLOVES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Lucius  Littauer,  representing  the  Associated  Leather  Glove  Manufac- 
turers of  the  United  States.  Gloversville,  N.  Y. 

FAVORING  LOWER  DUTIES  : 

The  Association  of  Glove  Importers,  New  York  City. 

Hearings :  Pages  4218-4222. 

Witness :  Mr.  Lucius  Littauer. 

Costs  and  selling  prices — Wages  paid  in  this  industry  in  the 
United  States  are  now  95  per  cent  higher  than  in  1912,  1913,  or  1914. 
There  has  been  one  reduction  of  12  per  cent  from  the  high  point  and 
the  employees  have  agreed,  of  their  own  accord,  to  a  further  reduction 
of  6  to  10  per  cent  in  the  hope  of  regular  employment. 

Ladies'  black  kid  gloves  are  popular  and  the  imported  gloves 
increased  in  price  from  $40  to  $48  a  dozen  pairs  in  June,  1921,  to  $64 
in  January,  1922.  The  value  of  imports  was  $16,486,000  in  the  fiscal 
year  ending  June  30,  1921,  more  than  double  the  importation  of  the 
previous  year.  The  respective  numbers  of  pairs  were  965,000  dozen 
and  582,018  dozen.  The  production  of  American  gloves  dropped  to 
40  per  cent  of  the  normal  value  and  the  number  of  dozen  pairs  to  25 
per  cent  of  the  usual  amount.  Furthermore,  jobbers  have  not  placed 
their  orders  for  the  coming  year,  as  they  usually  do  in  January. 

Rates  suggested. — In  paragraph  1433,  line  19,  insert  before  the 
word  "  Provided "  the  words  "  when  sewed,  pique  or  prixseam,  40 
cents  per  dozen  pairs."  Embroidering  and  embellishment  of  gloves, 
for  which  an  extra  duty  of  40  cents  per  dozen  pairs  is  provided  by  the 
bill,  does  not  cover  the  forms  of  sewing  mentioned  above.  The  Ding- 
ley  and  Payne- Aldrich  bills  allowed  for  each  of  these  purposes  40 
cents  a  dozen  pairs.  The  ordinary  sewing  is  done  on  a  machine  run- 
ning at  a  much  higher  rate  of  speed  than  the  one  on  which  pique 
sewing  is  done.  In  the  latter  style  of  sewing  two  seams  are  super- 
imposed. 

The  glove  manufacturers  ask  for  a  minimum  ad  valorem  duty  of 
60  per  cent  on  foreign  valuation  (or  37^  per  cent  on  American  valua- 
tion) because  imports  have  increased  greatly  in  value,  while  the 
equivalent  ad  valorem  rate  of  duty  has  fallen.  Importations  from 
1898  to  1913  amounted  each  year  to  $7,000,000  ($100,000  up  or  down) 
and  the  duties  collected  during  those  years,  based  upon  foreign  valua- 
tion and  a  specific  duty,  amounted  to  $3,200,000,  or  an  average  of  52 
per  cent  ad  valorem.  In  1920,  the  value  of  gloves  had  increased  until 
in  the  calendar  year  there  were  imported  $14,044.283  worth,  or  about 
twice  the  former  imports.  Receipts  from  duties  had  been  falling 
from  $3,200,000  to  $1.297,000,  a  drop  of  approximately  $2,000,000. 
That  is  to  say,  the  duties  had  fallen  off  one-third  and,  as  the  value 
had  doubled,  the  ad  valorem  rates  now  being  collected  are  only 
14  per  cent  as  against  the  previous  52  per  cent. 

Witness:  The  Association  of  Glove  Importers,  New  York  City. 
(Brief;  no  appearance  at  hearings.) 

Rates  suggested. — It  is  submitted  that  the  proposed  rates  on 
women's  leather  gloves  would  be  burdensome,  adding  from  $1  to  $1.50 
pe,r  pair  to  the  cost  of  the  lightweight  kid  gloves  for  general  wear. 


494  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

As  women's  kid  gloves  are  not  luxuries,  but  necessities,  there  is  no 
justification  for  rates  higher  than  those  imposed  by  the  Payne- 
Aldrich  law.  The  women  of  this  country  will  object  to  this  addi- 
tional burden  of  taxation.  The  provision  for  a  minimum  ad  valorem 
rate  of  37^  per  cent  would  mean  an  increase  over  previous  rates  of 
from  300  to  500  per  cent. 

The  rate  of  50  cents  for  each  additional  inch  in  excess  of  the 
limit  provided  is  excessive  and  out  of  proportion  to  the  basic  rates ; 
it  should  be  reduced  to  25  cents  an  inch.  Ad  valorem  rates  on  gloves 
have  been  tried  and  have  proved  a  failure.  American  manufac- 
turers of  women's  leather  gloves  have  been  given  protection  but  have 
failed  to  produce  gloves  corresponding  in  style  and  finish  to  the 
imported  article.  American  employees  have  not  the  skill  necessary 
to  produce  as  good  a  glove  as  the  French  worker ;  those  of  the  latter 
who  have  been  brought  to  this  country  have  not  proved  able  to 
duplicate  their  work  under  American  conditions. 

About  90  per  cent  of  the  imported  leather  gloves  for  women  and 
children  are  light-weight  gloves  which  cannot  be  manufactured  in 
the  United  States. 

Under  such  a  high  duty  on  kid  gloves  as  is  proposed  in  the  pend- 
ing tariff  bill,  importations  would  decline  greatly,  with  a  corre- 
sponding loss  of  revenue.  The  higher  cost  of  the  imported  gloves, 
caused  by  the  tariff,  would  put  up  the  price  of  the  domestic  glove. 

The  rates  of  the  Payne- Aldrich  bill  were  50  per  cent  higher  than 
existing  rates  and  would  provide  additional  revenue  for  the  Govern- 
ment and  also  give  the  women  of  the  country  opportunity  to  buy 
necessary  apparel. 

PARAGRAPH   1433. — WOVEN  LEATHER  GLOVES. 

Hearings:  Pages  4222-4225. 

Witness:  The  Association  of  Glove  Importers,  New  York  City. 
(Brief;  no  appearance  at  hearings.) 

The  brief  submits  that  women's  kid  gloves  are  known  to  be  actual 
necessities  and  in  no  sense  luxuries,  and  that  the  hopes  of  a  success- 
ful manufacture  of  high-class  articles  in  this  line  have  not  been 
realized.  Special  qualities  inherent  in  French  labor  are  not  found 
here,  and  the  long  experience  required  is  also  lacking.  No  attempt 
should  be  made,  through  the  medium  of  a  high  tariff,  to  compel 
American  women  to  be  satisfied  with  a  glove  of  domestic  manu- 
facture that  does  not  compare  in  quality  or  appearance  with  the 
imported  article.  The  brief  suggests,  as  a  maximum,  the  rates  of 
the  Payne-Aldrich  tariff  on  women's  leather  gloves.  These  are 
not  less  than  50  per  cent  higher  than  the  existing  tariff  rates,  and  a 
greater  increase  would  be  intolerable. 

PARAGRAPH  1434. — CATGUT,  ETC. 
WITNESS,  AND  IN TEREST  REPRESENTED. 
FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Thomas  J.  Mee,  representing  the  Chicago  Gut  String  Manufacturing 
Association. 

Hearings :  Pages  4225-4226. 

Costs  and  selling  prices. — Tennis  strings  selling  for  $200  a  gross 
in  this  country  can  be  bought  abroad  for  half  of  that  amount,  and 


DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456.  495 

cheaper  grades  which  sell  for  $160  a  gross  can  be  bought  abroad  at 
a  cost  of  less  than  $100  a  gross.  The  foreign  cost  of  music  strings 
is  about  one-fourth  of  the  'American  selling  price.  Music  strings 
of  American  make,  sold  in  this  country  for  $4  a  bundle,  can  be 
bought  abroad  for  $1  a  bundle.  Surgical  catgut  can  be  bought 
abroad  for  one-half  the  price  of  the  American  article  in  this 
country,  the  American  price  being  around  $13  a  thousand  feet  and 
the  foreign  price  about  $6  a  thousand  feet. 

Rates  suggested. — The  equivalent  of  at  least  35  per  cent  on  the 
American  value  for  tennis  strings  and  surgical  catgut:  on  music 
strings  as  high  a  rate  of  duty  as  the  committee  can  give. 

If  manufacturers  of  certain  kind  of  fishing  tackle  would  be  seri- 
ously injured  by  the  imposition  of  a  duty  on  "  worm  gut,"  then  such 
gut  should  be  placed  on  the  free  list. 

Remarks. — A  brief  previously  filed  with  the  Ways  and  Means 
Committee  gives  details  of  the  industry. 

PARAGRAPH  1434. — WORM  GUT. 

WITNESSES. 

FAVOKING  LOWER  DITTIES  . 

G.  W.  Frost  &  Sons,  Stevens  Point,  Wis.     (Brief.) 
The  Pequea  Works,  Strasburg,  Pa.     (Brief.) 
Mr.  Joseph  E.  Pfluger,  Akron,  Ohio. 

Witness:  G.  W.  Frost  &  Sons,  Stevens  Point,  Wis.  (Brief;  no 
appearance  at  hearings.) 

Rates  suggested. — Worm  gut  should  be  on  the  free  list. 

Remarks. — Worm  gut  is  an  exclusive  silk-worm  product  of  a  very 
small  center  in  Spain.  Notwithstanding  diligent  experiments,  it  has 
never  been  possible  to  produce  it  in  this  and  other  countries.  It 
is  used  almost  exclusively  in  the  manufacture  of  snelled  hooks, 
leaders,  casts,  and  other  fishing  tackle. 

Witness:  The  Pequea  Works,  Strasburg,  Pa.  (Brief;  no  appear- 
ance at  hearings.) 

Rate*  suggested. — A  tariff  on  worm  gut  would  be  disastrous  to  the 
manufacturers  of  fishing  tackle.  Under  former  tariffs  it  has  been 
free  of  duty. 

Remarks. — Worm  gut  is  not  and,  for  climatic  and  other  reasons, 
can  not  be  produced  in  this  country.  The  world's  supply  practically 
all  comes  from  Spain. 

Hearings:  Pages  4226-4228. 

Witness :  Mr.  Joseph  E.  Pfluger,  Akron,  Ohio. 

The  witness  explained  to  the  committee  that  a  misunderstanding 
or  a  mistake  had  arisen  in  connection  with  paragraph  344,  evidently 
intended  for  1434  as  regards  this  item.  Worm  gut  is  a  silkworm 
growing  in  southern  European  countries  and  is  used  extensively 
for  the  making  of  fishing  tackle.  As  the  outcome  of  the  witness's 
testimony,  it  was  understood  that  catgut  should  be  placed  on  the 
dutiable  list  and  that  worm  gut  should  continue  to  come  in  free. 


496  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

PARAGRAPH  1435. — GAS  MANTLES. 
WITNESSES,  AND  INTERESTS  HKPBESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Sidney  Mason,  representing  the  Welsbach  Co. 
The  Lindsay  Light  Co.,  Chicago,  111.     (Brief.) 

Hearings :  Pages  4230-4233. 

Witness:  Mr.  Sidney  Mason. 

Costs  and  selling  prices. — The  German  mantles,  the  Holland 
mantles,  or  the  Netherlands  mantles  are  entered  in  the  American 
market  at  from  $32  to  $35  a  thousand.  Taking  the  entering  value 
at  about  $36.  the  duty  under  the  Underwood  bill  would  be  $8.75 
to  $9.  The  American  wholesale  price  for  the  corresponding  mantle 
is  $65,  and  the  difference  of  30  per  cent  is  more  than  double  the 
duty.  Gas  mantles  vary  in  value,  due  to  variation  in  quality,  but 
the  popular  mantle's  retail  price  is  from  10  to  15  cents.  This*  price 
prevails  even  though  the  foreign  mantle  is  imported  at  $45  a  thou- 
s.and.  There  is  an  increase  in  cost  of  materials  and  labor  running 
from  $15  to  $27  a  thousand.  Wage  rates  are  at  least  20  per  cent 
above  those  of  1914  and  cost  of  materials  will  average  over  50  per 
cent.  The  American  manufacturer  is  producing  a  gas  mantle  at  from 
$58  to  $60,  which  used  to  be  at  about  $42. 

Rates  suggested. — Fifty  per  cent  ad  valorem  on  American  valua- 
tion. 

Remarks. — It  is  pointed  out  that  the  duty  on  materials*  entering 
into  the  manufacture  of  gas  mantles  is  $12.18  a  thousand  mantles 
under  H.  R.  7456  and  $4?<2  under  the  act  of  1913,  a  difference  of 
about  $8  or  200  per  cent.  The  duties  on  materials  are  not  objected  to. 
The  brief  referred  to  is  not  printed  in  the  hearings. 

Hearings:  Pages  4229^230. 

Witness:  The  Lindsay  Light  Co.,  Chicago,  111.     (Brief.) 

Comparability. — The  company  reviews  the  history  of  German  and 
Japanese  importations  into  this  country  in  1914  and  prior  thereto, 
as  well  as  since  the  war.  Quotations  had  been  made  as  low  as  $45 
per  1,000,  which,  with  the  present  duty  of  25  per  cent  ad  valorem, 
made  it  possible  to  bring  in  mantles  of  a  very  good  quality  at  less 
that  $60  per  1,000.  American  manufacturers  can  not  duplicate  these 
qualities  at  less  than  $85  per  1.000. 

Ra.te$  suggested. — That  the  tariff  on  gas  mantles  in  the  past  has 
not  been  high  enough  is  shown  by  a  reduction  in  the  number  of  do- 
mestic manufacturers  since  1910  from  99  to  23.  It  is  the  opinion  of 
over  80  per  cent  of  this  industry  that  nothing  short  of  50  per  cent 
ad  valorem,  on  American  valuation,  will  enable  those  now  operating 
to  meet  foreign  competition  and  show  a  nominal  profit. 

PARAGRAPH  1437. — MANUFACTURES  OF  GUTTA  PERCHA. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Bishop  Gutta-Percha  Co.,  New  York.     (Brief;  no  appearance  at  hear- 
ings.) 

Costs  and  selling  prices. — The  cost  of  manufacturing  gutta-percha 
goods  consists  of  about  50  per  cent  for  material  and  50  per  cent  for 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456.  497 

labor  and  overhead.     In  Germany  the  labor  and  overhead  cost  is 
about  one-third  of  what  it  is  in  the  United  States. 

Comparison  of  costs. 


United 
States. 

Germany. 

Materials  

$0.50 

$0.50 

Labor  ....          

50 

17 

Total 

1  00 

67 

Duty,  35  per  cent  on  $1  

.35 

1.02 

Size  of  industry. — There  are  only  four  or  five  manufacturers  in  the 
United  States  with  an  aggregate  business  of  from  $750,000  to 
$1.000.000  per  year. 

Rates  suggested* — A  duty  at  least  equal  to  that  provided  in  the 
1913  act  (35  percent). 

PARAGRAPHS  1437  AND  1438. — MANUFACTURES  or  RUBBER. 
WITNESS,  AND  INTERKST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  A.  L.  Viles,  representing  the  Rubber  Association  of  America. 

Hearings :  Page  4233. 

Rates  suggested. — The  association,  representing  90  per  cent  of 
United  States  rubber  manufacturers,  approves  paragraphs  1437  and 
1438  regarding  rubber  articles.  The  proposed  10  per  cent  duty  on 
tires  should  not  be  higher,  as  reprisal  tactics  of  other  nations  are 
more  to  be  feared  than  the  competition  from  importations. 

PARAGRAPH  1438. — HARD  RUBBER  PRODUCTS. 

WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHEK  DUTIES  : 

Mr.  Judson  Drayton,  representing  the  Vulcanized  Rubber  Co.     (Brief.) 
Mr.  F.  G.  Achelis,  representing  the  American  Hard  Rubber  Co.,  New  York 

City. 

Hon.  Samuel  K.  Owens,  acting  mayor  of  Butler,  N.  J.,  and  member  of  the 
House  of  Assembly  of  New  Jersey.     (Brief.) 

Hearings :  Page  4233. 

Witness :  Mr.  Judson  Drayton,  representing  the  Vulcanized  Rub- 
ber Co.  (Brief.) 

Costs  and  selling  prices. — The  total  cost  of  labor  is  very  much 
higher  for  hard-rubber  goods,  being  60  to  70  per  cent  of  tne  total 
cost  of  the  article.  Wages  paid  in  this  country  are  from  4  to  6 
times  as  high  as  those  paid  for  the  same  work  in  Germany,  Austria, 
and  Japan. 

Size  of  industry. — The  American  hard-rubber  business,  when  run- 
ning to  capacity,  employs  7.000  hands,  with  an  output  of  $15,000,000 
to  $20.000,000. 


498 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 


Rates  suggested. — There  should  be  a  separate  paragraph  or  classi- 
fication for  hard-rubber  goods,  as  distinguished  from  rubber  goods  in 
general. 

The  proposed  rate  of  30  per  cent  should  be  increased  to  at  least 
45  per  cent,  or,  if  the  30  per  cent  rate  be  retained,  then,  in  addition, 
a  specific  duty  of  at  least  40  cents  per  pound. 

Remarks. — Hard  rubber  is  forced  to  compete  with  many  other  ma- 
terials, whereas  soft  rubber  has  no  such  competition. 

Hearings :  Pages  4234-4240. 

Witness :  Mr.  F.  G.  Achelis,  representing  the  American  Hard  Rub- 
ber Co.,  New  York  City. 

Costs  and  selling  prices. — Manufactures  of  hard  rubber  represent 
a  great  deal  of  hand  labor  on  a  small  quantity  of  material.  A  gross 
of  8-inch  combs  takes  8£  pounds  of  material  and  a  single  32  by  4 
automobile  tire  weighs  25  pounds.  Labor  is  the  large  factor  of  cost. 
In  1920  it  was  65  per  cent  of  the  cost  of  the  total  product. 

Wages  in  the  hard-rubber  industry. — 

Average  earnings  per  annum. 


Comb  operations. 

Germany. 

United  States,  1921. 

1913. 

1921. 

Female. 

Male. 

Platin?  

Jl/orfc*. 
1,000 
1,000 
1.000 
1,100 
950 
1,053 
980 

$240 
240 
240 
264 
228 
253 
235 

Marks. 
10,000 
10,000 
10,  000 
11,000 

a,  500 

10,  530 
9,800 

$100 
100 
100 
110 
95 
105 
98 

$1,510 
1,560 
1,610 
1,690 
1,645 
1,145 
1,295 

Rabbin?..   . 

""$i,"340 
U20 

Washin" 

Polishing  

Stamping  

In  the  preparation  of  technical  articles,  vulcanizing  work,  the 
wages  for  German  women  are  9  marks;  for  men,  23.56  murks,  per 
week. 

In  the  preparation  of  electrical  insulating  material,  German 
women,  14  marks ;  men,  29.30  marks,  per  week. 

In  the  manufacture  of  combs,  finishing  work,  German  women,  12 
marks ;  men,  24  marks,  per  week. 

Turning,  German  women,  16.33  marks;  men,  28.37, marks,  per 
week. 

A  hard-rubber  article  [exhibit],  which  after  it  is  cut  in  two  be- 
comes a  smoker's  article,  was  sold  at  $2.30  a  gross.  The  American 
cost  to  manufacture  a  similar  article  was  $2.66  a  gross. 

There  are  300  different  types  of  combs,  varying  in  price  from  $9 
to  $100  a  gross,  wholesale.  A  fancy  comb  [exhibit]  would  sell  for 
$45  per  gross,  net. 

Size  of  industry. — The  American  Hard  Rubber  Co.  operated  three 
factories,  with  3,000  employees  in  1920  and  1,789  on  December  1. 
1921.  Twelve  concerns  in  the  United  States  manufacture  hard- 
rubber  articles. 

Comparability. — The  Germans  make  excellent  goods.  Competi- 
tion with  them  is  not  on  quality  but  on  wages. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.   7456.  499 

Rates  suggested.— Fifty  per  cent  on  American  valuation,  or,  as 
an  alternative,  a  specific  "duty  per  gross  of  combs,  or  per  pound  of 
product. 

Remarks. — Hard  rubber  is  radically  different  as  an  industry  from 
tires,  boots  and  shoes,  mechanical  goods,  and  soft  rubber  sundries. 
It  is  a  specialized  and  highly  technical  industry,  competing  with 
other  plastics,  such  as  celluloid,  bakelite,  condensite,  redmanol,  gala- 
lith,  vulcanized  fiber,  etc.  Attention  is  called  to  the  fact  that  combs 
and  other  articles  made  of  hard  rubber  carry  a  duty  of  30  per  cent, 
while  combs  and  other  articles  made  of  pyroxylin  carry  a  duty  of 
65  cents  per  pound  and  25  per  cent  ad  valorem;  galalith,  40  cents 
per  pound  and  25  per  cent  ad  valorem;  fountain  pens,  holders 
(mostly  made  of  hard  rubber),  are  protected  by  a  specific  as  well  as 
an  ad  valorem  duty ;  combs  of  horn  or  horn  and  metal.  35  per  cent. 

The  export  market  has  been  ruined  by  the  flood  of  cheap  Japanese 
and  German  products. 

The  hard-rubber  industry  is  entirely  different  from  the  soft- 
rubber  industry. 

Witness:  Hon.  Samuel  K.  Owen,  acting  mayor  of  Butler,  N.  J., 
and  member  of  the  House  of  Assembly  of  New  Jersey.  (Brief;  no 
appearance  at  hearings.) 

Rates  suggested. — Suitable  legislation  should  be  enacted  so  that 
hard  rubber  goods  can  be  imported  only  on  a  basis  of  American  val- 
uation or  under  a  tariff  which  will  equalize  the  difference  in  ex- 
change. 

Remarks. — Since  the  recent  revival  of  foreign  manufacture,  the 
American  market  is  being  flooded  with  cheap  rubber  combs  of  Ger- 
man manufacture  which,  under  existing  conditions,  can  be  sold 
here  at  prices  with  which  it  is  utterly  impossible  to  compete.  Hard 
rubber  goods  should  not  be  confused  with  other  rubber  goods. 

PARAGRAPH  1438. — MANUFACTURES  or  PLASTER  or  PARIS. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  T.  M.  O'Connell,  representing  T.  M.  O'Connell  Co..  Philadelphia,  Pa. 

Hearings:  Pages  4240-^243. 

Costs  and  selling  prices.^- Xinety-five  per  cent  of  the  work  in  mak- 
ing plaster  of  Paris  ecclesiastical  and  other  statuettes  is  handwork. 

In  Germany,  type  casters  are  paid  300  marks,  polishers  280  marks, 
and  painters  350  marks  per  week.  Material  costs  in  Germany  in- 
clude: Plaster  of  Paris,  which  in  peace  times  used  to  cost  1.20  marks 
the  bag,  now  costs  36  marks ;  colors  have  gone  up  more  than  500  per 
cent. 

The  following  weekly  wages  are  being  paid  at  witness's  plant: 
Casters,  $40  or  2,000  marks;  polishers,  averaging  $35  or  700  marks; 
painters.  $30  to  $50  or  from  1,580  to  2,500  marks.  Plaster,  the  prin- 
cipal commodity  used,  $1.50  per  bag  as  against  18  cents  in  Germany. 

Size  of  the  industry. — Three  hundred  thousand  dollars'  worth  of 
various  statuettes  are  manufactured  in  Philadelphia ;  there  are  three 
manufacturers  in  New  Jersey,  and  several  in  Xew  York,  some  in  Bos- 
ton, and  some  in  the  other  large  cities.  It  was  estimated  that,  as  -i 
whole,  the  product  would  amount  to  $500,000. 


500  DIGEST  OF  TAKIFF   HEADINGS,  H.  B.   "7456. 

Comparability. — Small  statuettes  were  never  manufactured  up  to 
the  time  of  the  war  in  this  country  to  any  extent ;  75  to  90  per  cent 
imported.  Statuettes  made  of  bisque  or  china  were  never  manufac- 
tured in  the  United  States  and  were  highly  protected  under  prewar 
conditions  (55  and  60  per  cent). 

Rates  suggested. — Under  existing  conditions,  100  per  cent  on 
American  valuation.  Small  statuettes  should  have  a  higher  duty 
than  larger  ones,  because  they  are  carried  in  bulk  and  open  stock 
and  are  used  mostly  in  homes  and  sometimes  in  schools  or  private 
chapels  or  convents,  but  seldom,  if  ever,  in  churches.  A  separate 
classification  of  these  articles  is  desired.  The  following  is  the 
phraseology  recommended : 

Manufactures  of  plaster  of  Paris,  casts  of  sculpture,  statuettes  made  of 
plaster  of  Paris,  papier-mach6  carton  piers,  metal  or  other  material,  of  cruci- 
fixes, over  7  inches  in  length,  with  wooden  cross  and  corpus  of  any  of  the 
foregoing  materials. 

A  similar  tariff  should  be  put  on  metal  crucifixes  or  any  crucifixes 
made  of  other  substances,  as  they  enter  into  competition  with  plaster 
crucifixes.  Metal  crucifixes  are  brought  in  under  the  metal  schedule. 

Remarks. — A  comparative  statement  of  prewar  and  present-day 
wages  has  been  filed  with  the  Committee  on  Ways  and  Means,  to- 
gether with  a  schedule  of  prices. 

PARAGRAPH  1441. — VIOLINS. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

John  A.  Gould  &  Son,  Boston,  Mass.  (Brief;  no  appearance  at  hearings.) 
Rates  suggested. — The  writer  of  the  brief  is  apparently  opposed 
to  a  specific  duty  applying  to  cheap  violins,  as  in  some  cases  the 
value  would  not  be  much  greater  than  the  duty.  Many  violins  are 
being  imported  free  of  duty  on  account  of  their  supposed  antiquity, 
and  it  is  suggested  that  the  same  duty  be  placed  on  old  instruments 
as  on  modern  ones. 

PARAGRAPH  1441. — TUNING  PINS. 

WITNESS. 

FAVORING  LOWER  DUTIES  : 

Hammacher,  Schlemmer  &  Co.  (Inc.),  New  York,  X.  Y.     (Brief;  no  appear- 
ance at  hearings.) 

Costs  and  selling  prices. — Prior  to  the  war,  tuning  pins  were  sold 
by  domestic  manufacturers  as  low  as  $2.40  per  1,000,  but  when  im- 
portations ceased  the  price  was  advanced  to  $10  per  1,000.  Now  that 
tuning  pins  are  again  being  imported  the  price  of  the  domestic  pins 
has  been  reduced  to  $5.30. 

The  following  data  are  based  on  August  1, 1921,  prices : 

TUNING   PINS,    FORKIGN. 

Per  1.000. 

Foreign  currency  price   (Germany) $3.  GO 

Cost  of  packing  and  cases .14 

Dutiable  total  _.  -     3.74 


DIGEST   OF   TARIFF    HEARINGS,    H.    R.    7456.  501 

Per  1,000. 
Other  expenses  to  bring  goods  to  port  of  arrival,  c.  i.  f.  cost $0.20 


Total 3.  94 

Present  duty,  at  35  per  cent  on  .$3.74 1.  31 


Present  landed  cost,  duty  paid 5.  25 

Importer's  present  selling  price  to  trade,  adding  334  per  cent  to  cost 7.  00 

TUNING  PINS,   AMERICAN    (MADE  BY  THE  AMERICAN   MUSICAL  SUPPLY   CO.)    COMPARA- 
ABLE  AND  COMPETITIVE. 

Selling  price  to  the  trade $6.00 

Proposed  duty,  based  on  American  valuation  : 

Ad  valorem  25  per  cent : $1.  50 

Specific  $1  per  1,000 1.00 


Total    duty 2.  50 

Less  present  duty,  35  per  cent  on  foreign  value 1.  31 


Increase  in  duty  of 1.19 

On  which  importer  claims  a  gross  profit  of  33J  per  cent .40 


Amount  which  must  be  added 1.  59 

To  selling  price  of 7.  00 


Making  new  selling  price  of 8.  58 

The  total  duty  on  1,000  tuning  pins,  based  on  American  valuation, 
is  equivalent  to  67  per  cent  on  foreign  valuation. 

Rate*  suggested. — The  rate  of  $1  per  1,000  and  25  per  cent  ad 
valorem  will  make  it  absolutely  prohibitive  to  import  tuning  pins. 
It  is  recommended  that  tuning  pins  be  not  separately  provided  for, 
but  allowed  to  come  in  as  parts  of  musical  instruments,  as  the}'  have 
in  the  past. 

PARAGRAPH  1444. — ROSARIES. 

WITNESSES,   AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Mr.  Francis  J.  Smith,  representing  the  Association  of  Catholic  Publishers, 

Manufacturers,  and  Dealers  in  Catholic  Goods  of  America. 
Mr.   John  R.  Rafter,   representing  importers  and  dealers  in   rosaries  and 

other  religious  articles.     (Brief.) 
Mr.  Emil  Klein,  representing  G.  Klein  &  Son,  Providence,  R.  I. 

Hearings :  Page  4246. 

Witness :  Mr.  Francis  J.  Smith,  representing  the  Association  of 
Catholic  Publishers,  Manufacturers,  and  Dealers  in  Catholic  Goods 
of  America. 

Rates  suggested. — Separate  classification  for  rosaries.  The  asso- 
ciation is  not  interested  in  rates,  whether  high  or  low.  Approves  of 
the  suggested  omission  of  the  words  "similar  articles  of  religious 
devotion,"  as  they  will  lead  to  confusion. 

Hearings:  Pages  4243^246. 

Witness:  Mr.  John  R.  Rafter,  representing  importers  and  dealers 
in  rosaries  and  other  religious  articles  (Brief). 

Size  of  industry. — The  annual  importations  average  about  $300,000. 

Comparability. — The  only  rosaries  made  in  the  United  States  are 
those  composed  of  precious  metal  or  of  precious  metal  in  combination 
77134—22 33 


502  DIGEST   OF   TARIFF    HEARIXGS,   H.   R.    7456. 

with  beads  of  semiprecious  or  imitation  precious  stones.  Practically 
all  rosaries  imported  are  made  of  base  metal  solely,  or  of  base  metal 
in  combination  with  other  common  materials,  wood.  bone,  glass,  etc. 

Rates  suggested. — No  recommendation  as  to  rates,  but  the  classi- 
fication adopted  by  the  House  of  Representatives  is  approved. 

Remarks. — Only  by  means  of  a  special  (eo  nomine)  provision  of 
the  kind  recommended  will  rosaries  be  classified  at  a  uniform  rate 
of  duty.  In  the  absence  of  such  a  provision  they  will  continue  to  be 
assessed  for  duty,  as  now  and  heretofore,  at  various  rates,  dependent 
on  their  component  material  of  chief  value — a  most  unsatisfactory 
rule  of  tariff  classification  both  from  an  administrative  and  a  busi- 
ness standpoint  and  producing  the  most  anomalous  and  absurd 
results. 

Hearings:  Pages  4247-4250. 

Witness:  Mr.  Emil  Klein,  representing  G.  Klein  &  Son,  Provi- 
dence, R.  I. 

Costs  and  selling  prices. — Exhibit  1 :  Two  rosaries  made  of  imita- 
tion cocoa  beads  strung  on  nickel-plated  chain,  with  the  customary 
corpus  attached.  Sells  in  the  American  market  for  less  than  $1.25 
per  dozen. 

Exhibit  2 :  Two  rosaries,  one  made  of  imitation  cocoa  beads  and 
nickel-plated  chain,  the  other  of  nickel-plated  beads  and  chains. 
They  are  valued  at  more  than  $1.25  per  dozen. 

Exhibit  3 :  A  rosary  of  pressed  beads  and  gold-plated  chain  of 
American  manufacture.  The  cost  of  production  is  $16.63  per  gross, 
of  which  $12.96  is  for  labor.  The  cost  of  the  same  rosary  made 
abroad  and  laid  down  in  this  country,  exclusive  of  duty,  is  $8.71. 

Exhibit  4:  A  rosary  of  fine  cut  beads  and  gold-plated  chain  of 
American  manufacture.  The  cost  of  production  is  $21.61  per  gross, 
of  which  $12.96  is  for  labor.  The  cost  of  the  same  rosary  made 
abroad  and  laid  down  in  this  country,  exclusive  of  duty,  is  $11. 

Exhibit  5 :  A  rosary  of  fine  oval  beads  and  gold-plated  chain  of 
American  manufacture.  The  cost  of  production  is  $34.16  per  gross, 
of  which  $12.96  is  for  labor.  The  cost  of  the  same  rosary  made 
abroad  and  laid  down  in  this  country,  exclusive  of  duty,  is  $21.79. 

Rates  suggested  (on  American  valuation). — Rosaries  and  chaplets 
of  whatever  material  composed,  valued  at  not  more  than  $1.25  per 
dozen,  15  per  cent ;  valued  at  more  than  $1.25  per  dozen,  30  per  cent ; 
any  of  the  foregoing  if  made  in  whole  or  part  of  gold,  silver,  gold 
plate,  silver  plate,  precious  or  imitation  precious  stones,  50  per  cent. 
The  words  "and  similar  articles  of  religious  devotion"  in  H.  R. 
7456  should  be  omitted,  as  the  phrase  would  be  made  to  compre- 
hend a  large  variety  of  articles  which  have  under  all  previous  tariff 
laws  been  assessed  under  various  paragraphs  at  varying  rates  of 
duty.  Great  difficulties  will  arise  in  determining  what  articles  come 
within  the  scope  of  "  similar  articles  of  religious  devotion." 

Remarks. — It  is  stated  in  the  brief  that  the  duty  of  30  per  cent  on 
rosaries  valued  at  more  than  $1.25  per  dozen  is  not  a  sufficient  pro- 
tection for  rosaries  and  chaplets  made  in  whole  or  in  part  of  gold, 
silver,  gold  plate,  silver  plate,  or  precious  or  imitation  precious  stones. 
Beads  in  imitation  of  precious  stones,  which  form  a  large  part  of  the 
raw  material,  have  been  raised  from  35  to  45  per  cent  and  imitation 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  503 

precious  stones  to  45  per  cent.  Rosaries  assessed  for  duty  under 
paragraphs  333  and  167,  act  of  1913,  at  50  per  cent,  have  been  pro- 
vided for  in  H.  R.  7456  at  30  per  cent. 

PARAGRAPH  1447 ;  ALSO  PARAGRAPHS  1660, 1685,  AND  1688  OF  SCHEDULE 
15. — CHURCH  STATUARY. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  John  J.  Kirley,   representing  manufacturers  of  church  statuary. 
The  Association  of  Domestic  Manufacturers  of  Church  Statuary.     (Brief.) 

FAVORING  LOWER  DUTIES  : 

The  Frederick  Pustet  Co.  (Inc.),  New  York  City.     (Brief.) 

Hearings :  Pages  4250-4256. 

Witness :  Mr.  John  J.  Kirley,  representing  manufacturers  of  church 
statuary. 

Costs  and  selling  prices. — In  Germany  the  present  scale  of  wages 
is  about  20  per  cent  and  the  cost  of  materials  about  40  per  cent  those 
prevailing  in  the  United  States. 

The  market  price  ranges  from  $85  to  $100  for  a  5-foot  statue  of 
"rich"  or  "extra  rich"  decoration,  varying  according  to  the  com- 
ponent material  or  the  value  of  the  decoration  used. 

American  casters  and  cleaners  or  finishers  are  paid  $6 ;  flesh 
painters  $7.20;  drapery  painters  and  free-hand  workers  $6.40,  in 
each  case  per  8-hour  day.  German  casters,  cleaners,  and  finishers 
are  paid  $1.12  a  day;  flesh  painters  $1.44  a  day;  drapery  painters 
and  free-hand  workers  $1.28  per  day. 

A  brief  submitted  by  the  importers  includes  the  following  table, 
showing  the  cost  of  production  of  a  5-foot  church  statue  cast,  tech- 
nically known  as  a  religious  cast  of  sculpture,  painted  and  decorated. 


Domestic. 

Foreign.! 

Labor,  including  preparing  mold,  pouring  in  and  removing,  casting, 
ratine;  making  cases,  packing,  and  shipping  

Inishing,  deco- 

$30.20 
14.58 

16.04 
5.83 

Materials,  including  casting  plaster,  fiber,  nondextrin  oils,  turpentine,  paints,  gold 

Prime  cost  

44.78 

30.20 
2.24 

11.87 

6.04 
.35 

Overhead  expense,  including  rent,  salaries,  commissions,  heating, 

gas,  light,  ex- 

Loss  and  collections  (3  per  cent)  

77.22 

18.26 
50.00 

If  a  duty  of  50  percent  of  the  American  valuation  ($100)  is  imp 
amount  to  — 

jsed,  this  will 

The  total  cost  of  a  domestic  article  as  compared  with  a  foreign  statue 


"Mark  of  value  2  cents. 

Size  of  industry. — The  industry  is  an  important  one  and  is  carried 
on  in  New  York.  Chicago.  St.  Louis,  Boston,  Philadelphia,  Mil- 
waukee, Pittsburgh,  and  Dubuque.  It  employs  hundreds  of  men  in  a 
skilled  occupation  in  which  no  machinery  is  used. 

In  the  year  1920  upward  of  10,000  religious  statues  were  cast  and 
sold  by  domestic  manufacturers,  including  statues  over  1  foot  high 
up  to  a  height  of  6£  feet.  The  yearly  value  of  the  product  is  upward 
of  $2,500,000. 


504  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

Rates  suggested. — Fifty  per  cent  on  American  valuation  instead 
of  15  per  cent  as  provided  for  in  paragraph  1447.  So  far  as  the 
provisions  of  paragraph  611  (par.  1660.  H.  R.  7456)  and  of  para- 
graph 655  (par.  1688.  H.  R.  7456)  of  the  tariff  act  of  1913.  which  are 
applicable  to  statuary  and  casts  of  sculpture,  are  concerned,  it  is 
recommended  that  these  provisions  remain  unchanged. 

It  is  urged  that  no  further  exceptions  be  made  to  the  levying  of 
duty  upon  statuary,  letting  down  the  bars  to  further  importations 
of  articles  free  of  duty. 

Remarks. — Under  the  tariff  act  of  1913  the  article  is  admitted  free 
of  duty  when  it  is  to  be  used  for  art  educational  purposes  only  (par. 
611)  and  when  it  is  a  work  of  art  imported  expressly  for  presenta- 
tion to  national  institutions,  etc.  In  other  cases  the  article  is  duti- 
able at  35  and  40  -per  cent  ad  valorem  if  the  chief  component  part 
is  earthenware  (par.  79)  and  at  25  per  cent  ad  valorem  if  the  chief 
component  part  is  plaster  of  Paris  (par.  369). 

The  product  is  not  a  work  of  art  in  any  sense  of  the  word.  Xeither 
the  original  creation,  the  glue  model,  nor  the  final  mold  as  cast  and 
decorated  is  recognized  by  art  schools  or  art  authorities  as  a  work 
of  art.  They  are  properly  classified  as  trade  articles,  the  products 
of  a  factory  or  workshop,  similar  to  the  classification  given  to  profane 
statuary  and  other  articles  cast  from  stock  molds. 

Witness:  The  Frederick  Pustet  Co.  (Inc.).  Xew  York  City. 
(Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — In  a  brief  of  the  American  Manufac- 
turers of  Church  Statuary,  filed  with  the  Ways  and  Means  Commit- 
tee (p  4051,  Tariff  Information  1921),  the  bare  cost  of  manufacture 
in  the  United  States  is  given  as  $77.22  for  a  5-foot  statue  in  "  extra- 
rich'*  decoration.  This  cost,  according  to  the  brief,  does  not  include 
interest  on  principal  or  capital  or  profit  of  any  kind. 

A  copy  of  invoices  from  the  Deprato  Statuary  Co.,  of  Chicago,  to 
the  witness's  company  is  inclosed.  The  following  are  the  prices 
shown  in  the  invoices: 

Price,  net. 

1  statue  St.  Joseph  and  child.  No.  258,  5- foot  ere:' in  and  gold,  extra  rich $63.70 

1  statue  St.  Teresa.  Xo.  1185,  5-foot,  extra  rich 63.70 

The  price  includes  careful  packing  in  excelsior  and  a  strong  case 
f.  o.  b.  Chicago.  (The  price  does  not  cover  pedestals  or  brass  plates, 
for  which  the  invoice  shows  a  net  charge  of  $42.) 

It  is  stated  that  the  Munich  Statuary  Co..  of  Milwaukee,  furnishes 
the  witness's  company  5-foot  statues  of  St.  Joseph  with  child.  Xo. 
261.  in  extra-rich  decoration,  for  $76.80.  from  which  price  a  discount 
of  30  per  cent  is  allowed.  A  sheet  of  the  Deprato  Statuary  Co., 
showing  list  prices  of  certain  church  statuary,  is  inclosed. 

Rates  suggested. — A  fair  duty  might  properly  be  imposed  on  im- 
ported church  statuary,  but  it  would  not  be  right  materially  to  in- 
crease the  rate  of  duty  on  such  goods  on  the  basis  of  representations 
which  have  been  made  to  the  Ways  and  Means  Committee. 

Witness :  The  Association  of  Domestic  Manufacturers  of  Church 
Statuary.  (Brief;  no  appearance  at  hearings.) 

Costs  (md  selling  prices. — When  the  tariff  act  of  1913  was  enacted 
the  scale  of  wages  in  the  industry  in  the  United  States  was  less  than 


DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456. 


505 


one-half  of  that  now  maintained.  Similarly,  the  cost  of  materials 
has  more  than  doubled. 

The  present  scale  of  wages  in  Germany  is  about  20  per  cent  of  that 
obtaining  in  the  United  States,  and  the  cost  of  materials  is-about  40 
per  cent. 

The  market  price  ranges  from  $85  to  $100  for  a  5-foot  statue  of 
"rich"  or  "extra-rich"  decoration.  The  price  varies  according  to  the 
component  material  or  the  value  of  the  decoration  used. 

The  item  of  labor  forms  a  large  percentage  of  the  cost  of  produc- 
tion, as  shown  in  this  table  : 

COMPARATIVE   LABOR  COSTS. 


\ 

German 

wages. 

American 
wages. 

Marks,  i 

Dollars. 

Dollars. 

Casters,  per  hour  

1 

0.14 
14 

0.75 
75 

Flesh  painters,  per  hour     

9 

.18 

.90 

Drapery  painters,  per  hour  
Free-hand  workers,  per  hour  

8 
8 

.16 
.16 

.80 
.80 

Mark  taken  as  equivalent  to  2  cents. 

COST  OF  PRODUCTION,  5-FOOT  CHURCH  STATUE,  CAST. 


Foreign. 

Domestic. 

Labor,  including  preparing  mold,  pouring  in  and  removing,  casting,  finishing, 
decorating,  making  ca^es,  packing,  and  shipping  
Materials,  including  casting  plaster  fiber,  iron,  desterine  oils,  turpentine,  paints, 

$6.04 
5  83 

$30.20 
14.58 

Prime  cost  
Overhead  expense,  including  rent,  salaries,  commissions,  heating,  gas,  light, 
expense*  of  salesmen  (100  per  cent  of  labor  cost)  

11.87 
6.04 

44.78 
30.20 

Loss  on  collections  (3  per  cent)  

.35 

2.24 

18  26 

77.22 

Size  of  industry. — The  industry  is  carried  on  in  several  of  the 
large  centers,  namely,  New  York,  Chicago,  St.  Louis,  Boston,  Phila- 
delphia. Milwaukee,  Pittsburgh,  and  Dubuque. 

In  1920  upward  of  100,000  religious  statues  were  cast  and  sold  by 
domestic  manufacturers,  including  statues  over  1  foot  high  up  to  6^ 
feet.  The  average  sale  price  per  statue  is  $25.  The  total  yearly  value 
is  upward  of  $2,500,000. 

Rates  suggested. — A  duty  of  50  per  cent  ad  valorem,  based  on 
American  valuation.  A  duty  of  at  least  250  to  300  per  cent  would 
be  required  if  based  on  the  valuation  of  the  imported  article  or  on 
its  cost  to  manufacture  abroad. 

No  change  is  desired  with  respect  to  paragraphs  1660,  1685,  and 
1688,  but  it  is  recommended  that  no  further  exceptions  be  made  in 
the  direction  of  lowering  the  bars  to  the  further  importation  of  arti- 
cles free  of  duty. 

Remarks. — These  products  are  not  works  of  art ;  art  schools  or  art 
authorities  do  not  recognize  them  as  such.  They  are  trade  articles, 
the  products  of  a  factory  or  workshop,  the  same  as  other  articles 
cast  from  stock  molds. 


506  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPH  1449. — LEAD  PENCILS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Mr.  Frank  W.  Lilley.  representing  the  Joseph  Dixon  Crucible  Co.  and  others. 
FAVORING  LOWER  DUTIES  : 

Mr.  X.  Bilder,  representing  A.  W.  Faber  (Inc.). 

Hearings :  Pages  4263-42X0. 

Witness :  Mr.  Frank  W.  Lilley,  representing  the  Joseph  Dixon 
Crucible  Co.  and  others. 

Costs  and  selling  prices. — A  Castell  pencil  used  to  be  laid  down  at 
60  marks,  equivalent  to  about  $10,  per  gross,  but  there  was  a  com- 
mission or  discount  off  that.  To-day  that  pencil  is  sold  at  60  marks, 
with  the  mark  at  one-half  cent,  or  about  30  cents.  The  German 
Government  adds  to  that  an  export  duty  of  550  per  cent,  making 
the  price  $1.80  per  gross. 

Pencils  are  being  sold  in  Tokyo  at  35  cents  per  gross,  as  against 
$1.25  by  Mr.  Lilley's  concern.  The  graphite  in  the  Japanese  pencil 
is  not  as  good  as  in  the  American  pencil. 

German  pencils  are  being  sold  in  New  York  all  the  way  from  85 
cents  to  $1.70  per  gross,  as  against  $2.50  to  $2.90  per  gross  for  the 
American  pencil. 

Size  of  industry. — Four  thousand  or  five  thousand  hands  are  em- 
ployed in  the  industry. 

Rates  suggested. — No  change  is  desired  in  the  present  bill  (H.  R. 
7456).  Would  be  willing  to  accept  the  provisions  of  the  Payne- 
Aldrich  bill. 

Remarks. — Senator  Smoot  having  questioned  the  statement  that 
lead  pencils  could  be  sold  in  Germany  for  60  marks,  30  cents,  as 
that  would  not  cover  the  cost  of  the  graphite  or  cedar,  the  witness 
stated  that  the  Japanese  imitate  the  marks  of  the  American  pencils 
to  the  smallest  details. 

In  a  brief  filed  by  the  witness  (pp.  4269-4270)  the  effect  of  pre- 
vious tariffs  is  reviewed,  particularly  as  enabling  importers,  A.  W. 
Faber  especially,  to  import  large  quantities  of  pencils  from  Germany 
at  prices  against  which  American  manufacturers  were  powerless  to 
compete. 

Contradicting  statements  made  by  A.  W.  Faber,  the  brief  affirms 
that  pencils  imported  by  that  concern  were  undervalued ;  the  records 
in  the  New  York  customhouse  are  cited  as  confirming  that  statement. 
The  brief  discusses  relative  prices  of  various  pencils  and  gives  the 
present  labor  cost  in  Germany  as  $2.40  per  week. 

Hearings :  Pages  4257-4263. 

Witness:  Mr.  N.  Bilder,  representing  A.  W.  Faber  (Inc.). 

Costs  and  selling  prices. — The  witness  discussed  the  effect  of  the 
proposed  tariff  on  the  cost  of  a  pencil  costing  in  a  foreign  port  $1.40 
per  gross — 

The  duty  of  25  per  cent  ad  valorem  per  gross  would  amount  to $0.  35 

Specific  duty  per  gross _. .  50 

Imprint  other  than  the  manufacturer's  name .50 

Total__.  .     1. 35 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  507 

which  is  275  per  cent  higher  than  the  present  duty  of  36  cents  per 
gross  and  nearly  100  per  cent  of  the  original  cost. 

The  effect  of  the  tariff  on  a  popular  brand,  with  tip,  costing  $2  per 
gross  in  a  foreign  port,  was  detailed  as  follows : 

Cost  of  pencil $2.00 

25  per  cent  duty .  50 

Name  other  than  manufacturer's .50 

Specific    fluty .  50 

Rubber    tip .  25 

3.75 
Cost  of  insurance  and  freight .15 


Importer's  cost,  total 3.90 

A  pencil  of  a  similar  type  is  sold  by  the  American  manufacturer 
for  $3.60  per  gross. 

Size  of  industry. — The  pencil  industry  of  this  country  is  con- 
trolled by  four  manufacturers.  They  control  95  per  cent  of  the  pen- 
cil industry,  the  other  5  per  cent  being  in  the  hands  of  approximately 
four  other  manufacturers.  In  1919  exports  of  pencils  amounted  to 
$3,565.347  and  in  1920  to  $3,849,221.  Imports  in  1920  amounted  to 
$225,578,  being  less  than  6  per  cent  of  the  exports  and  doubtless  less 
than  1  per  cent  of  the  domestic  business. 

Rates  suggested. — The  present  law  (1913)  adequately  protects  the 
American  manufacturer.  If  the  industry  should  be  given  a  further 
protection  not  to  exceed  15  cents  per  gross,  then  the  iniquitous,  dras- 
tic, and  absolutely  business-destroying  features  of  the  cumulative 
provisions  of  the  proposed  law  should  be  eliminated.  If  the  cumu- 
lative duties  on  caps  or  protectors,  on  pencils  prepared  for  caps  or 
protectors,  and  on  pencils  stamped  with  names  other  than  the  manu- 
facturers is  written  into  the  law,  the  importer  will  be  legislated  out 
of  business  and  the  existing  "  big  four  "  control  of  the  industry  will 
continue. 

PARAGRAPH  1449. — MECHANICAL  PENCILS. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The  Wahl  Co.,  Chicago,  111.     (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  Eversharp  pencil,  which  retails  at  $1 
and  wholesales  at  50  cents,  forming  60  per  cent  of  the  total  sales  of 
the  Wahl  Co.,  costs  $0.5757,  of  which  $0.3413  is  labor,  direct  and 
indirect,  and  $0.2324  is  material.  The  cost  to  a  German  manu- 
facturer, assuming  that  he  pays  the  same  for  his  materials,  would 
be  $0.2893. 

A  German  pencil  is  offered  at  50  marks,  equivalent  to-day  to  about 
50  cents.  A  similar  Eversharp  pencil  retails  for  $1.75,  wholesales 
at  $1.05,  and  costs  the  American  company  $0.93  to  manufacture,  of 
which  $0.47  is  labor  and  $0.46  material. 

Rates  suggested. — H.  R.  7456  provides  specifically  for  mechanical 
pencils  in  paragraphs  352  and  1449.  The  former  applies  to  those 
made  of  base  metal,  and  not  plated  with  gold,  silver,  or  platinum,  a 
duty  of  45  cents  per  gross  and  20  per  cent  ad  valorem;  the  latter 
applies  to  mechanical  pencils,  n.  s.  p.  f.,  a  duty  of  50  cents  per  gross 
and  25  per  cent  ad  valorem.  Under  the  act  of  1913,  mechanical  pencils 


508  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

were  dutiable  under  the  jewelry  paragraph,  356,  at  60  per  cent  ad 
valorem.  In  view  of  the  specific  provisions  of  the  proposed  bill, 
the  question  is  raised  whether  these  pencils  would  be  dutiable  under 
the  basket  clause  of  paragraph  393  at  45  or  35  per  cent,  or  under 
paragraph  1428  at  55  per  cent.  If  the  mechanical  pencils  now  in 
general  use,  plated  with  gold,  silver,  or  platinum,  should  be  held 
to  be  dutiable  under  paragraph  1449  at  50  cents  per  gross  and  25 
per  cent  ad  valorem,  the  protection  would  be  entirely  inadequate.  It 
is  suggested  that  enameled  pencils,  which  compete  with  the  plated 
ones,  should  be  specifically  covered  in  the  tariff  act.  The  brief  pro- 
poses the  following  as  to  classification  and  rates.  [It  fails,  however, 
to  cover  mechanical  pencils  made  of  precious  metals.] 

Mechanical  pencils  made  of  base  metal  and  not  plated  with  gold,  silver,  or 
platinum,  or  not  enameled  or  not  colored  with  gold  lacquer,  whether  partly  or 
wholly  manufactured,  45  cents  per  gross  and  25  per  centum  ad  valorem. 
Mechanical  pencils  made  of  base  metal  and  plated  with  gold,  silver,  or  platinum, 
or  enameled  or  colored  with  gold  lacquer,  whether  partly  or  wholly  manu- 
factured, 50  per  centum  ad  valorem. 

PARAGRAPH  1450. — REFILL  LEADS. 


FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 
The  Wahl  Co.,  Chicago,  111.'     (Brief.) 
M.  A.  Ferst  (Ltd.),  Atlanta,  Ga.     (Brief.) 

Witness:  The  Wahl  Co.,  Chicago,  111.  (Brief;  no  appearance  at 
hearings.) 

Costs  and  selling  prices. — The  Wahl  Co.  sells  its  refill  leads  in 
metal  boxes  containing  12  pieces  of  lead,  If  inches  long  and  forty-six 
one-thousandths  o^f  an  inch  in  diameter.  The  retail  price  is  15  cents 
and  the  wholesale  price  9  cents  per  box.  or  $1.08  per  gross  of  leads. 

Rates  suggested. — The  following  is  suggested  as  the  phrasing  and 
rates  for  paragraph  1450: 

Pencil  leads  not  in  wood  or  other  material,  6  cents  per  gross;  leads  not  ex- 
ceeding six  one-hundredth*  of  1  inch  in  diameter  and  commonly  known  as 
refills,  10  cents  per  gross  of  lead*  J§  indies  or  lex*  In  Irnuth  and  10  cent*  addi- 
tional per  yross  for  each  1%  inches  or  fraction  thereof  additional  length;  col- 
ored, copy,  or  indelible  leads,  60  cents  per  gross  of  leads  2  inches  or  less  in 
Icnfftli  and  30  cent  ft  additional  per  gross  for  each  inch  or  fraction-  thereof  addi- 
tional length;  and,  in  addition  thereto,  on  all  the  foregoing,  20  per  centum  ad 
valorem. 

Remarks. — The  brief  calls  attention  to  the  diameter  of  the  leads 
mentioned  in  the  bill.  This  diameter  of  six  one-thousandths  of  an 
inch  has  no  particular  significance.  The  lead  in  an  Eversharp  pen- 
cil is  forty-six  one-thousandths  of  an  inch  in  diameter. 

The  brief  states  that  under  the  present  wording  of  paragraph  1450 
a  foreign  manufacturer  may  send  leads  into  this  country  in  lengths 
of  4  or  5  inches,  pay  the  tax  per  gross,  and  then  cut  them  off  to 
the  commercial  length  of  If  inches.  A  gross  of  leads  5|  inches  long 
will  make  4  gross  If  inches  long.  Ninety-five  per  cent  of  refills  are 
1§  inches  long.  The  commercial  length  of  indelible  and  colored 
leads  is  2  inches. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  509 

Witness:  M.  A.  I^erst  Co.  (Ltd.),  Atlanta,  Ga.  (Briefs;  no  ap- 
pearance at  hearings.) 

Attention  is  called,  in  a  letter,  to  a  typographical  error  in  the 
House  bill,  regard  ing*  refill  leads.  The  diameter  of  such  leads  should 
be  sixty  one-thousandths  and  not  six  one-thousandths  of  an  inch. 

Rates  suggested. — In  a  more  extended  communication  (pp. 
4270-4271)  it  is  urged  that  paragraph  1450  be  changed  to  read  as 
follows  : 

Pencil  leads  not  in  wood  or  other  material,  7^  cents  per  gross  and  25  per  cetit 
ad  valorem ;  thin  leads,  small-diameter  leads,  not  exceeding  0.060  inch  diameter 
and  li  inches  in  length,  or  refills  for  American  pencils,  10  cents  per  gross  and 
30  per  cent  ad  valorem. 

Attention  is  drawn  to  the  relative  rates  of  wages  in  Germany  (5 
cents  per  hour  for  the  average  laborer)  and  in  America  (35  cents), 
representing  a  difference  in  cost  of  6  cents  per  gross.  On  colored 
copy  or  indelible  leads  the  duty  should  be  at  least  75  cents  per  gross 
plus  25  per  cent  ad  valorem,  the  cost  of  the  particular  dye,  in 
America,  being  from  four  to  five  times  as  much  as  in  Germany. 

PARAGRAPH  1451. — PHOTOGRAPHIC  GOODS. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  ON  CAMERAS: 
The  Ansco  Co.     (Brief.) 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  ON  RAW  FILMS  (SENSITIZED  BUT  NOT 
EXPOSED)  : 

Mr.  P.  A.  Powers,  representing  Powers  Film  Products  Co. 

Mr.  Charles  H.  Cole,  representing  Bay  -State  Film  Co.,   Eastman  Kodak 

Co.,  and  two  others. 
Mr.  Jules  E.  Brulatonr.     (Brief.) 
The  Ansco  Co.     (Brief.) 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  ON  FINISHED  PRODUCTIONS  (FILM  EX- 
POSED, DEVELOPED  OR  UNDEVELOPED;  POSITIVE  PRINTS)  : 

Mr.  Paul  M.  Turner,  representing  Actors'  Equity  Associat'on. 
Mr.  John  Emerson,  representing  independent  producers. 
The  Powers  Film  Products  (Inc.).     (Brief.) 
The  Actors1  Equity  Association.     (Brief.) 

FAVORING  LOWER  DUTIES  ON  FILM  (SENSITIZED  RUT  NOT  EXPOSED),  FILM  EX- 
POSED (DEVELOPED  OR  UNDEVELOPED),  AND  POSITIVES: 

Mr.  Frederick  R.  Coudert,  representing  Pa  the  Film  Co. 

Mr.  Saul  E.  Rogers,  representing  National  Association  Motion  Picture  In- 
dustry. 

Mr.  Edward  F.  Colladay.  indorsing  Mr.  Rogers's  presentation. 

Mr.  G.  S.  McFarland,  representing  International  Film  Service. 

Mr.  William  A.  Det'ord.  representing  International   F  1m  Service. 

Mr.   S.   F.   Hartman,   repres<>nt:ng   Universal    Film   Manufacturing   Co. 

Mr.  Daniel  R.  Forbes,  representing  Seneca  Camera  Co. 

The  Internat'onal  Newsreel  Corporation.     (Brief.) 

Republic  Laboratories  (Inc.).     (Brief.) 

Claremont  Film  Laboratories   (Inc.).      (Brief.) 

Coudert  Bros.,  representing  Pa  the  Film  Co.     (Brief.) 

Memorandum  from  the  Belgian  Ambassador.  Washington,  transmitted  to 
the  Finance  Committee  by  the  Secretary  of  State. 

Photographic  cameras : 

Witness:  The  Ansco  Co..  Binghamton,  X.  Y.  (Brief:  no  appear- 
ance at  hearings.) 

Cost*  and  selling  prices. — Labor  enters  so  largely  into  the  cost  of 
making  cameras  that  the  American  manufacturer  can  not  success- 


510  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

fully  compete  with  foreign  makers,  particularly  the  German.  Ger- 
man and  English  cameras  are  again  coming  into  this  country  in  in- 
creasing volume  and  at  the  present  rate  of  duty  they  can  undersell 
the  American  product. 

Rates  suggested. — An  ad  valorem  duty  of  45  per  cent  will  result 
in  fair  competition  and  provide  a  substantial  revenue. 

Motion  picture  films  sensitized  but  not  exposed : 

Hearings :  Pages  4342-4350. 

Witness:  Mr.  P.  A.  Powers,  representing  Powers  Film  Products 
Co.,  New  York,.N.  Y. 

Costs  and  selling  prices.— Cost  in  1920,  $2.11  per  100  feet ;  selling 
price — Powers,  $2.40 ;  Eastman,  $2.52.  Selling  price  now  of  domestic 
film,  $2.25 ;  of  German  film  (in  this  country) ,  $1.75. 

Comparability. — German  film  costs  Mr.  Powers  $0.90,  and  the  costs 
of  manufacturing  domestic  film  is  now  $2  per  100  feet. 

Rates  suggested. — Three-fourths  of  a  cent  per  foot  on  positive  and 
\\  cents  per  foot  on  negative  film,  sensitized  but  not  exposed. 

Remarks. — The  witness  began  manufacturing  film  in  1918,  and  was 
able  to  compete  with  and  undersell  the  Eastman  Co.  He  was  forced 
to  close  his  plant  in  1921,  however,  because  of  the  competition  of 
German  films.  The  Eastman  Co.  has  also  cut  down  production,  and 
the  Eagle  Rock  Co.  has  closed  down. 

Since  closing  his  plant  Mr.  Powers  has  been  importing  film 
from  Germany  which  he  can  now  purchase  at  $0.90  per  100  feet  and 
sell  in  this  country  at  $1.75.  He  is  importing  between  250,000  and 
500,000  feet  a  week — all  he  can  obtain  now — but  he  is  promised  de- 
liveries by  July  of  5,000,000  feet  per  week.  He  prefers  to  manufac- 
ture film  here  and  can  do  so  in  competition  with  the  Eastman  Co. 
and  other  domestic  manufacturers  if  he  is  afforded  protection  from 
the  German  product. 

Photographic  and  moving-picture  films,  sensitized  but  not  exposed : 

Hearings :  Pages  4309^329. 

Witness:  Mr.  Charles  H.  Cole,  representing  Bay  State  Film  Co., 
Sharon,  Mass. :  Ansco  Co..  Binghamton,  N.  Y. :  Eastman  Kodak  Co., 
Rochester,  N.  Y.;  Powers  Film  Products  Co.,  Rochester,  N.  Y. 

Costs  and  selling  prices. — The  cost  of  production  of  American-made 
films  in  1921  was  $1.92  per  100  linear  feet ;  the  estimated  cost  of  Agfa 
(German)  film  was  $0.776  per  100  feet.  The  selling  price  of  Amer- 
ican film  is  $2.25  per  hundred,  while  the  selling  price  in  Germany 
of  Agfa  film  is  $0.92  to  $1  per  hundred.  The  witness  cited  specific 
instances  of  German  film  laid  down  in  New  York  at  $1.31  per  hun- 
dred and  $0.94  per  hundred,  and  a  quotation  of  German  film  laid 
down  in  New  York  at  $1.20  per  hundred.  Average  cost  of  domestic 
labor  was  $4.80  per  day. 

Size  of  industry. — Five  companies  in  the  United  States  are  engaged 
in  manufacturing  moving-picture  film,  with  a  total  investment  for 
plants  and  equipment  not  suitable  for  other  purposes  of  approxi- 
mately $50,000,000.  Mr.  Cole  states  that  the  total  production  of  film 
in  the'United  States  last  year  was  "  between  700,000.000  and  800,000,000 
linear  feet.  Imports  for  last  three  months  have  been  at  the  rate  of 
240,000,000  feet  a  year. 

Comparability.— The  domestic  companies  fear  competition  chiefly 
from  the  Agfa  Film  Co.,  a  German  company  controlled  by  the  Ger- 


DIGEST  OF   TARIFF   HEARINGS,   H.    R.    74-56.  511 

man  Chemical  Trust.     The  detailed  cost  of  producing  100  feet  of 
film  in  this  country  and  the  estimated  cost  in  Germany  are  as  follows : 


Ger- 
many. 

United 
States. 

Celluloid  

Silver  nitrate,  gelatin  and  chemicals 

Labor  and  manufacturing  expense  
Overhead  

.102 

.510 

Total.. 

Rates  suggested.— Not  less  than  three-fourths  cent  per  linear  foot 
on  positive  film  sensitized  but  not  exposed,  and  not  less  than  1^  cent 
per  linear  foot  on  negative  film  sensitized  but  not  exposed.  The 
witness  stated  that  he  preferred  a  specific  duty,  but  if  this  were  not 
granted  he  would  suggest  an  ad  valorem  duty  of  35  per  cent  on 
American  valuation  or  50  per  cent  on  foreign  valuation. 

Remarks. — The  witness  filed  briefs  with  letters  and  invoices  in 
substantiation  of  the  prices  on  German  films  quoted  by  him. 

He  states  that  unless  increased  duties  are  provided,  the  Agfa  Film 
Co.,  controlled  by  the  German  Chemical  Trust,  will  acquire  the  en- 
tire American  market  for  unexposed  film  and  dominate  the  motion- 
picture  industry.  This  company  now  has  a  monopoly  in  Germany, 
Austria,  and  the  central  states  of  Europe,  and  is  doing  an  immense 
volume  of  business  in  England,  Italy,  and  Scandinavian  countries. 

The  duty  which  the  witness  requests  would  not  prohibit  the  im- 
portation of  foreign  films.  It  would  still  permit  the  importation  of 
such  films  and  their  sale  at  a  profit,  but  it  would  enable  the  Ameri- 
can manufacturer  to  compete  on  a  more  even  basis. 

The  Eastman  Kodak  Co.  denies  that  increased  duties  would  per- 
mit that  company  to  monopolize  the  industry  and  increase  prices. 
It  states  that  it  has  no  intention  or  desire  to  do  this,  but  rather  to 
encourage  the  industry  and  enlarge  production,  and  states  that  with 
the  rates  suggested  it  could  not  raise  prices  and  compete  with  Ger- 
man film. 

The  witness  further  stated  that  two  American  companies  are  not 
now  able  to  manufacture  film  and  sell  in  competition  with  the  for- 
eign film,  and  have  therefore  discontinued  manufacturing. 

Witness:  Mr.  Jules  E.  Brulatour.  (Brief;  no  appearance  at  hear- 
ing.) 

Costs  and  selling  prices. — Foreign  manufacturers  can  easily  pay  a 
duty  of  20  per  cent  and  still  undersell  American  manufacturers.  The 
brief  states  that  the  writer,  who  formerly  sold  foreign  films  exclu- 
sively, was  able  to  pay  the  duty  of  25  per  cent  imposed  by  the  Payne- 
Aldrich  tariff,  plus  freight,  insurance,  and  all  other  charges,  under- 
sell the  American  manufacturer,  and  still  make  the  enormous  profit  of 
one-half  cent  per  foot.  The  prices  at  which  film  imported  into  this 
country  is  placed  in  consular  invoices  are : 

[Cents  per  linear  foot.] 

From   Belgium 2.  02 

From    France • 

From   England 1.  53 

From  Germany : 1.  07 


512  DIGEST   OF  TARIFF   HEARINGS,   H.  R.   7456. 

The  German  Agfa  Co.  is  flooding  this  market  with  its  film  and  is 
actually  offering  to  accept  contracts  here  at  1.67  cents  per  foot  de- 
livered. 

Size  of  industry. — There  are  five  domestic  manufacturers  engaged 
in  the  production  of  this  film. 

Rates  suggested. — The  ad  valorem  duty  of  20  per  cent  in  the  pend- 
ing bill  to  be  maintained. 

Attention  is  called  to  an  inconsistency  in  the  present  tariff  act, 
namely,  that  sensitized  film  is  admitted  free  of  duty  while  the  cellu- 
loid base  of  motion  picture  films  is  dutiable  at  40  per  cent. 

Film  sensitized,  but  not  exposed : 

Witness:  The  Ansco  Co.,  Binghamton,  X.  Y.  (Brief;  110  appear- 
ance at  hearings.) 

Rates  suggested. — Photographic  film  sensitized,  but  not  exposed  or 
developed,  should  carry  a  duty  of  30  per  cent  ad  valorem.  In  a  lettei* 
dated  November  7,  1921  (nearly  nine  months  later  than  the  brief), 
developments  are  said  to  have  shown  that  a  duty  of  30  per  cent  will 
be  inadequate. 

Remarks. — The  photographic-film  industry  was  created  by  the 
genius  of  an  American.  The  patent  owned  by  the  Ansco  Co.  expired 
in  1915.  This  country  would  have  been  flooded  with  importations  of 
photographic  films  had  it  not  been  for  the  war. 

Motion-picture  films,  exposed  but  not  developed:  exposed  and  de- 
veloped; positives,  prints,  etc.  (finished  productions)  : 

Hearings :  Pages  4288-4300. 

Witness:  Mr.  Paul  M.  Turner,  representing  the  Actors'  Equity 
Association. 

Costs  cmd  selling  prices.— Pictures  which  cost  $20,000  to  $30,000 
to  produce  in  Germany  are  bringing  returns  here  of  $300,000  to 
$400,000. 

Size  of  industry. — Capital  invested  between  $150,000000  and 
$200,000,000;  250,000  people  connected  with  industry;  10,000  men 
and  women  actually  in  the  production  end  (acting,  etc.). 

Comparability. — Motion  pictures  can  be  produced  in  Germany  for 
about  iO  per  cent  of  the  cost  of  production  here.  "  Passion  "  is  esti- 
mated to  have  cost  $30,000  to  produce  in  Germany.  It  was  sold  to 
the  American  buyer  for  $7,000,  and  brought  in  ab'out  $400.000.  To 
produce  it  in  this  country  would  have  cost  about  $400,000. 

Rates  suggested. — Fifty  to  sixty  per  cent  ad  valorem. 

Rema.rJcs. — Mr.  Turner  stated  that  the  subject  would  be  divided 
between  Mr.  Emerson  and  himself. 

He  is  requesting  a  high  duty  on  the  finished  motion-picture  pro- 
ductions in  the  interest  of  the  people  employed  in  the  domestic  indus- 
try who  are  dependent  on  American  productions  for  their  liveli- 
hood. The  salaries  of  the  actors  are  not  high  on  the  average.  The 
largest  portion.  80  per  cent,  composing  what  is  known  as  the  crowd. 
take  very  small  parts  in  the  picture.  They  are  paid  about  $10  when 
they  work,  which  averages,  over  a  period  of  a  year,  about  $5  a  day. 
Sixteen  per  cent  form  the  small-act  class,  who  play  parts  of  com-v 
parative  importance.  Their  pay  averages,  over  a  year,  about  $45  a 
week.  The  remaining  4  per  cent  are  the  higher-paid  actors.  A  tVw 
of  these,  but  only  a  few,  may  be  said  to  be  overpaid. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  513 

The  result  of  foreign  pictures  being  brought  into  the  country  will 
be  to  displace  American-made  pictures,  which  means  decreased  do- 
mestic production  and  unemployment  for  those  connected  with 
American  production.  The  American  producers  will  not  produce 
here,  but  will  transfer  their  activities  to  foreign  countries,  and  uss 
foreign  actors. 

With  reference  to  the  statement  of  Mr.  Rogers  that  only  a  few 
foreign  pictures  have  been  suitable  for  presentation  here.  Mr."  Turner 
filed  a  list  of  54  foreign  pictures  which  had  been  exhibited  during 
the  past  few  months.  As  regards  a  retaliatory  tariff  on  our  exports 
of  pictures,  he  stated  that  the  only  countries  that  could  be  considered 
in  this  connection  would  be  Germany,  France,  and  Italy,  the  pro- 
ducing countries. 

Motion-picture  films,  exposed  but  not  developed ;  exposed  and  de- 
veloped; positives,  prints,  etc.: 

Hearings :  Pages  4300-4308. 

Witness:  Mr.  John  Emerson,  representing  independent  producers. 

Rates  suggested. — Fifty  per  cent  to  sixty  per  cent  ad  valorem. 

Remarks. — Mr.  Emerson  states  that  he  speaks  for  himself  and 
Mr.  David  Griffith,  as  independent  producers  of  motion  pictures. 
Other  independent  producers  are  in  favor  of  a  higher  tariff,  but  are 
not  openly  advocating  it  for  fear  of  antagonizing  the  larger  pro- 
ducers who  control  the  distribution  of  their  pictures. 

The  effect  of  foreign  films  was  first  felt  about  a  year  and  a  half 
ago.  At  that  time  there  were  208  companies  working  in  Xew  York 
and  Los  Angeles  and  now  there  are  only  83,  a  decrease  in  a  year 
and  a  half  of  60  per  cent.  The  demand 'from  theaters  for  pictures 
has  not  fallen  off  60  per  cent,  only  comparatively  few  theaters  being 
closed. 

The  large  producing  companies  are  not  in  favor  of  a  duty  on  fin- 
ished productions  because  they  have  determined .  upon,  and  are.  in 
fact,  in  process  of  transferring  their  production  activities  to  foreign 
countries.  With  an  American  star  and  director  they  can  produce 
abroad  cheaply,  and,  with  free  entry  of  the  films,  send  them  here 
for  exhibition  at  the  highest  possible  price.  Discontinuance  of  pro- 
ducing here  will  not  affect  the  exhibition,  as  the  large  companies  con- 
trol the  organizations  which  handle  the  distribution  of  pictures. 
Among  them  they  practically  control  the  theaters  of  the  country 
and  can  dictate  the  prices  at  which  the  pictures  can  be  sold. 

One  company,  the  Famous  Players-Lasky.  has  reduced  the  num- 
ber of  companies  in  their  Los  Angeles  studio  from  10  to  3,  and  closed 
entirely  their  Xew  York  studio.  They  have  opened  studios  in  Lon- 
don, Berlin,  and  India  and  are  planning  one  in  France.  The  Fox  Co. 
are  producing  in  Italy.  Their  New  York  studio  has  been  reduced 
from  6  companies  to  3,  and  in  Los  Angeles  from  12  companies  to  4. 
If  this  item  is  retained  on  the  free  list  the  industry  will  be  trans- 
ferred entirely  to  Europe,  the  American  workers  will  be  deprived 
of  a  livelihood,  the  Government  will  get  nothing,  and  the  public 
will  not  benefit  through  lower  costs. 

The  witness  does  not  believe  retaliatory  duties  will  be  imposed. 
Two  countries  have  already  placed  duties  on  films,  but  these  duties 
are  for  revenue  purposes  and  not  as  a  matter  of  retaliation.  He 
states,  however,  that  even  if  the  foreign  market  were  entirely  closed 


514  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

to  American  films  and,  the  American  market  closed  to  foreign  films, 
the  home  market  is  ample  to  permit  of  payment  of  decent  salaries  and 
afford  the  producers  a  handsome  profit. 

The  duty  requested  is  not  prohibitive,  but  it  would  serve  to  pro- 
tect domestic  producers. 

Witness:  The  Powers  Film  Products  (Inc.),  New  York,  X.  Y. 
(Brief;  no  appearance  at  hearings.) 

Remarks. — Advocates  of  the  free  entry  of  moving  pictures  who 
appeared  before  the  committee  represented  men  who  are  producing 
pictures  in  Germany.  They  are  closing  American  studios  in  order 
to  transfer  the  production  of  pictures  to  Europe. 

On  the  other  hand,  those  who  appeared  before  the  committee  to 
advocate  a  tariff  on  sensitized  film  and  on  moving  pictures  were 
practical  men  in  the  business,  operating  on  their  own  money,  while 
those  on  the  other  side,  who  claimed  to  represent  the  entire  moving 
picture  industry,  represented  in  reality  a  combination  of  associated 
interests. 

The  combination  has  imported  the  greatest  number  of  German 
pictures  during  the  past  two  years,  and  has  accumulated  in  this 
country  a  large  number  of  pictures  obtained  at  ridiculously  low 
prices. 

Witness:  The  Actors'  Equity  Association,  New  York,  N.  Y. 
(Brief;  no  appearance  at  hearings.) 

Kates  suggested. — If  the  industry  in  the  United  States  is  to  sur- 
vive, the  provisions  in  the  Fordney  tariff  must  be  retained. 

Remarks. — The  letter  refers  to  two  inclosed  clippings,  taken  from 
the  New  York  Times  of  September  1  and  October  2,  1921.  The 
former  is  a  news  item  relating  to  the  action  of  the  Federal  Trade 
Commission  in  issuing  a  formal  complaint  against  the  Famous  Play- 
ers-Lasky  Corporation  and  11  others,  on  the  ground  that  they  repre- 
sent a  combination  and  conspiracy  to  secure  control  and  monopoliza- 
tion of  the  motion-picture  industry  of  the  country. 

The  second  clipping,  referring  to  the  film  industry  in  Germany, 
states  that  there  are  about  1,600  film  companies  in  that  country  and 
that  the  cost  of  production  is  about  half  of  what  it  is  in  England 
and  one-sixth  of  that  in  America. 

Motion-picture  films,  sensitized  but  not  exposed : 

Hearings :  Pages  4331-4342. 

Witness:  Mr.  Frederick  R.  Coudert,  representing  Pathe  Film,  2 
Rector  Street,  New  York. 

Size  of  industry. — The  motion-picture  industry,  in  1920,  paid 
taxes,  outside  of  excess  profit  and  income  taxes,  amounting  to 
$87,000,000.  The  production  of  raw  film  by  one  domestic  company 
amounted  to  800,000,000  linear  feet  per  year." 

Rates  suggested. — Motion-picture  film,  sensitized  but  not  exposed, 
free. 

Remarks. — The  interest  represented  by  Mr.  Coudert  is  opposed  to 
a  duty  on  films  sensitized  but  not  exposed  on  the  grounds  that  such 
duty  wrould  strengthen  the  grip  that  the  Eastman  Co.  now  has  on 
the  raw  film  market,  permit  of  increased  prices  by  that  company, 
and  even  permit  of  its  controlling  the  motion-picture  industry  of  the 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  515 

country  through  control  of  the  raw  film ;  that  it  would  not  result  in 
increased  revenue  to  the  Government,  as  such  revenue  as  might  be 
received  from  importations  would  not  compensate  for  the  loss  due  to 
decreased  income  and  excess  profit  taxes  from  the  motion  picture 
companies ;  and  that  the  domestic  film  manufacturing  industry  would 
not  be  hurt  by  allowing  these  films  to  enter  free  of  duty. 

To  support  his  contention  that  the  Eastman  Co.  is  a  monopoly, 
Mr.  Coudert  cited  the  case  of  United  States  v.  Eastman  Kodak  Co. 
and  others  (United  States  District  Court,  Eastern  District,  N.  Y., 
Aug.  24,  1915.)  He  further  stated  that  the  Eastman  Co.  manu- 
factures more  than  90  per  cent  of  the  domestic  film,  is  able  to  export 
large  quantities,  and  in  1920  made  a  profit,  after  paying  income  and 
excess  profits  taxes,  of  $18,000,000  on  a  $25,000,000  capitalization. 

He  believes  that  the  few  small  domestic  competitors  of  the  East- 
man Co.  would  not  be  hurt  with  raw  film  admitted  free,  as  the  labor 
item  is  insignificant,  the  manufacture  being  almost  entirely  me- 
chanical, and  the  materials  which  enter  into  the  film  being  more 
easily  obtainable  and  cheaper  here  than  abroad. 

Another  reason  advanced  by  Mr.  Coudert  was  the  possibility  of 
retaliation,  which  he  feared  would  not  only  be  directed  against 
American  raw  film,  but  also  against  American  motion-picture  pro- 
ductions. 

He  stated  that  the  company  which  he  represents,  Pathe,  is  an 
American  corporation. 

Photographic  goods,  motion-picture  films,  etc. : 

Witness :  Mr.  Saul  E.  Rogers,  representing  the  Fox  Film  Corpora- 
tion and  the  National  Association  Motion  Picture  Industry,  New 
York  City. 

Size  of  industry. — The  American  motion-picture  industry  is  the 
fifth  or  sixth  in  point  of  size  in  the  country.  Employees  number 
between  250,000  and  300,000. 

Raw  film  :  Manufactures  amount  to  around  1.200,000,000  linear  feet 
per  year ;  domestic  consumption  is  about  900,000,000  linear  feet. 

Comparability. — Finished  productions :  American  productions  dom- 
inate the  domestic  and  foreign  markets.  Eighty  to  eighty-five  per 
cent  of  films  exhibited  in  foreign  countries  are  produced  in  America. 
Foreign  pictures  generally  are  not  suited  for  American  audiences, 
about  10  out  of  350  imported  during  the  past  three  years  having  been 
found  suitable. 

Raw  film  (sensitized  but  not  exposed)  :  The  Eastman  Co.  in  the 
United  States  produces  between  90,000,000  and  100,000,000  feet  per 
month:  three  other  domestic  companies  produce  small  amounts. 
Pathe  (France)  produces  about  2.500,000  feet  per  month;  the  Belgian 
company  about  5.000,000  feet  (half  of  which  is  used  at  home)  ;  and 
the  Agfa  Co.  (Germany)  about  9.000,000  feet  (half  of  which  is  used 
in  Germany  and  most  of  the  remainder  exported  to  this  country). 

Rates  suggested. — Motion-picture  films  exposed  but  not  developed, 
2  cents  per  linear  foot ;  exposed  and  developed,  3  cents  per  linear  foot ; 
positives,  imported  for  use  with  moving-picture  exhibits,  1  cent  per 
linear  foot. 

Raw  films,  sensitized  but  not  exposed,  free. 


516  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

Remarks. — With  regard  to  retaining  the  present  duty  on  the  fin- 
ished production — films  exposed  but  not  developed,  exposed  and  de- 
veloped, and  positives — Mr.  Rogers  testified,  in  effect,  as  follows : 

The  imposition  of  an  ad  valorem  duty  would  result  in  retaliatory 
duties  by  foreign  countries,  thus  jeopardizing  the  foreign  market  for 
American  films;  the  American  producer  would  be  compelled  to  go 
abroad  to  produce  in  order  to  enter  the  European  market  on  equal 
terms  with  the  foreign  producer:  the  American  consumer  would  be 
compelled  to  pay  a  higher  price  if  the  standard  is  to  be  maintained ; 
the  tariff  is  unnecessary  and  would  produce  small  revenue,  the  num- 
ber of  foreign  productions  imported  having  been  small  and  not  hav- 
ing made  any  material  inroad  in  the  American  market. 

It  is  fronTthe  foreign  business  that  the  profit  is  derived,  the  pro- 
ducers counting  on  the  home  market  only  for  amortization  of  produc- 
tion cost  and  a  very  small  profit.  With  retaliatory  duties  barring 
American  films  from  other  countries,  thus  destroying  the  foreign 
market,  or  at  best  making  it  a  speculative  one,  it  would  be  necessary 
to  obtain  both  the  profit  and  the  amortization  of  production  cost  from 
the  market  in  this  country,  that  is,  by  passing  the  burden  on  to  the 
consumer — the  public.  The  alternative  to  this  would  be  to  lower  the 
standard  of  production,  which  would  mean  losing  the  dominant  posi- 
tion now  held  and,  consequently,  the  opportunity  for  foreign  films 
to  come  in  and  outstrip  the  domestic  industry. 

Practically  all  the  manufacturers  of  motion  pictures  in  the  country 
are  opposed  to  an  ad  valorem  duty,  and  so  far  as  can  be  discovered 
only  one  independent  producer  (Mr.  David  Griffith)  is  in  favor  of  it. 

Mr.  Rogers  filed  clippings  with  the  committee  to  show  that  the 
fear  of  retaliatory  duties  is  well  founded.  He  also  stated  that  the 
industry  has  been  served  with  a  protest  by  the  Canadian  Motion 
Picture  Distributors'  Association  against  an  increased  tariff,  stating 
that  Canada  will  follow  in  the  footsteps  of  Great  Britain  in  bringing 
about  retaliation.  This  protest  was  also  filed. 

On  the  subject  of  retaining  on  the  free  list  films  sensitized  but  not 
exposed,  Mr.  Rogers  gave  the  following  testimony : 

The  only  object  that  would  be  served  by  a  duty  on  raw  film  would 
be  to  help  the  Eastman  Kodak  Co.  to  maintain  their  monopoly  on 
this  article.  This  company  at  present  controls  between  95  and  98 
per  cent  of  the  American  market  and  a  large  part  of  the  foreign 
market.  Prior  to  the  entry  of  foreign  films  the  company  could  dic- 
tate any  price  it  desired,  but  with  foreign  competition  the  price  has 
fallen.  The  profits  of  the  Eastman  Co.  are  still  tremendous,  both  at 
home  and  abroad. 

The  laboratory  men,  who  are  the  chief  users  of  raw  film,  had  ap- 
peared before  the  Ways  and  Means  Committee  and  submitted  a  brief 
by  Mr.  Tom  Evans  in  which  every  laboratory  joined.  This  brief 
opposed  the  imposition  of  a  duty  on  raw  film  and  pointed  out  that 
the  laboratories  were  in  danger  of  being  forced  out  of  business  by  the 
Eastman  Co.  In  order  to  bring  these  laboratories  under  their  con- 
trol the  Eastman  Co.  acquired  three  laboratories  which  they  threat- 
ened to  open  and  operate  unless  the  other  laboratories  purchased 
their  supplies  of  stock  from  the  Eastman  Co.  As  a  result  a  contract 
was  made  under  which  the  laboratories  agreed  to  limit  their  pur- 
chases to  Eastman  stock,  and  the  Eastman  Co.  agreed  not  to  open 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  517 

their  laboratories,  with  the  proviso  that  as  soon  as  there  was  any 
evidence  of  departure  from  this  plan  the  Eastman  Co.  would  open 
them  and  go  into  competition  with  the  other  laboratories,  undersell 
them  in  the  market,  and  practically  force  them  out  of  business.  As 
soon  as  this  contract  was  completed  the  laboratory  men  withdrew  the 
brief  they  had  filed  with  the  committee  and  withdrew  every  remark 
they  had  made  against  the  Eastman  Co. 

A  copy  of  the  brief  referred  to  was  filed  by  Mr.  Rogers  (p.  4285). 

Film  sensitized  but  not  exposed  : 

Hearings :  Pages  4329-4331. 

Witness:  Mr.  G.  S.  McFarland,  International  Film  Service,  Bos- 
ton, Mass. 

Kemarks. — Mr.  McFarland  stated  that  he  would  answer  a  question 
asked  by  Senator  McLean  as  to  the  amount  of  protection  to  American 
labor  under  the  proposed  rate.  He  stated  that  the  cost  of  labor  to 
the  Eastman  Co.  in  sensftizing  the  films  is  about  $500,000  a  year, 
about  0.1  of  1  cent  per  foot.  This,  he  contends,  is  insignificant. 
He  did  not  know  the  total  cost  of  production  per  foot. 

Motion-picture  films,  sensitized  but  not  exposed : 

Hearings :  Pages  4350-4354. 

Witness:  Mr.  William  A.  Deford.  representing  International  Film 
Service  (Inc.)  and  International  Xewsreel  Corporation. 

Size  of  industTry. — Eastman  produces  about  100,000,000  feet  a  month. 
Powers  produces  about  1.200.000  feet  a  month.  Bay  State  produces 
about  1,200.000  feet  a  month.  Eastman  employs  about  500  wage 
earners. 

Rates  suggested. — Motion  picture  films,  sensitized  but  not  exposed, 
free:  negatives  of  news  pictures,  free. 

Remarks. — The  Eastman  Co.  has  practically  a  monoply  on  the 
domestic  business,  and  under  the  proposed  duty  would  be  able  to 
fix  and  set  exorbitant  prices.  Protection  is  not  needed,  as  for- 
eign competition  is  now  largely  speculative  and  not  a  real  menace. 
Without  this  competition  the'  Eastman  Co.  will  have  the  entire 
motion  picture  industry  in  its  grip,  as  it  will  have  control  of  the 
basic  product,  and  heretofore  it  has  used  such  power  to  obtain  con- 
trol. 

The  witness  states  that  the  Allied  Film  Laboratories  (Inc.).  an 
organization  of  independent  laboratories,  appeared  before  the  Ways 
and  Means  Committee  to  oppose  the  proposed  duty  on  raw  films. 
When  they  had  done  this  the  Eastman  Co.  purchased  two  or  three 
operating  laboratories  and  told  the  Allied  Laboratories  (Inc.)  that 
if  they  continued  the  opposition  to  the  proposed  duty  the  Eastman 
Co.  would  put  them  out  of  business,  which  they  could  do  by  operat- 
ing laboratories  in  competition.  As  a  result  a  contract  was  entered 
into  by  these  laboratories  and  the  Eastman  Co.  (Sept.  20,  1921), 
and  the  laboratories  have  discontinued  their  opposition. 

The  Eastman  Co.  does  not  need  protection  from  a  labor  standpoint, 
as  their  employees  number  only  about  500. 

The  witness 'also  requested  that  pictures  of  foreign  news  events  be 
permitted  free  entry.     If  they  were  held  for  appraisal  they  would 
lose  their  news  value. 
77134_22 34 


518  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Motion  picture  films,  exposed  but  not  developed ;  exposed  and  de- 
veloped; positives,  prints,  etc.: 

Hearings :  Pages  4308-4309. 

Witness:  Mr.  Siegfrid  F.  Hartman,  representing  the  Universal 
Film  Manufacturing  Co. 

Rates  suggested. — Free  list. 

Remarks. — The  witness  stated  that  the  Universal  Film  Co.  has  no 
intention  of  transferring  its  production  activities  abroad,  and  that 
their  plant  is  now  being  utilized  at  very  near  its  full  capacity.  They 
do  not  want  a  duty  on  finished  pictures,  as  they  fear  retaliatory  duties, 
and  the  receipts  from  foreign  exhibition  represent  their  profit. 

Roll  films  for  hand  cameras : 

Hearings :  Pages  4354-4357. 

Witness:  Mr.  Daniel  E.  Forbes,  representing  the  Seneca  Camera 
Co. 

Rates  suggested. — Free. 

Remarks. — The  witness  speaks  in  reference  to  film  rolls  such  as 
are  used  in  the  ordinary  hand  camera,  and  which  have  no  relation 
to  motion-picture  films.  His  company  manufactures  cameras,  not 
films,  but  in  order  to  keep  the  cameras  on  the  market  must  furnish 
films  for  them.  They  can  not  obtain  films  from  the  film  manufac- 
turers on  terms  permitting  of  retail  competition  with  films  for  other 
cameras  and  have  therefore  been  importing  films  from  England. 
If  they  can  not  furnish  films  for  their  cameras  on  the  same  basis  as 
films  offered  for  other  cameras,  their  cameras  will  not  sell.  The 
film  they  import  does  not  undersell  the  domestic  film.  It  is  made 
in  England  on  celluloid  exported  from  this  country. 

News  films: 

Witness:  The  International  Newsreel  Corporation.  (Brief;  no 
appearance  at  hearings.) 

Rates  suggested. — Imported  topical  films  should  be  exempted  from 
the  propsed  tariff  duty  of  30  per  cent  ad  valorem  on  motion-picture 
negatives  and  positive  prints.  The  duty  as  applied  to  topical  films 
would  -not  afford  protection  for  an  American  industry,  because 
American  news-reel  producers  themselves  use  the  imported  product. 
Most  of  the  imported  topical  film  is  received  by  American  news-reel 
producers  in  exchange  for  American  topical  films. 

The  revenue  would  be  small,  as  the  total  importations  of  this  class 
of  films  do  not  exceed  3,000  to  4,000  feet  per  week. 

The  imposition  of  an  ad  valorem  duty  would  result  in  delays  in- 
cident to  appraisals,  seriously  impairing  the  value  of  the  imported 
product. 

Remarks. — "  Topical  films  "  are  meant  to  cover  motion  pictures 
devoted  to  representations  of  actual  current  events  and  containing 
no  pictorial  matter  whatever. 

Films  sensitized  but  not  exposed: 

Witness:  Republic  Laboratories  (Inc.),  New  York,  N.  Y.  (Brief; 
no  appearance  at  hearings.) 

Rates  suggested. — Raw  film  stock  to  be  retained  on  the  free  list. 

Remarks. — It  is  stated  that  the  Eastman  Kodak  Co.,  which  now 
controls  over  90  per  cent  of  the  motion-picture  film  printed  in  this 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  519 

country,  will  be  continued  as  a  monopoly  if  raw  film  stock  is  not 
permitted  to  come  into  this  country  free  of  duty. 

The  Eastman  Co.,  through  Mr.  Jules  E.  Brulatour,  its  sole  agent, 
is  building  large  laboratories  to  compete  with  the  independent  labora- 
tories at  prices  and  on  terms  which  the  latter  can  not  meet. 

Films  sentitized  but  not  exposed : 

Witness:  Claremont  Film  Laboratories  (Inc.),  New  York,  N.  Y. 
(Brief;  no  appearance  at  hearings.) 

Remarks. — The  fact  of  the  matter  is  that  if  this  duty  (20  per  cent 
ad  valorem)  is  placed  upon  foreign  raw  stock  it  places  the  labora- 
tories entirely  at  the  mercy  of  the  Eastman  Kodak  Co.  That  com- 
pany has  already  invaded  the  laboratory  field  with  plants  capable  of 
printing  more  film  than  is  necessary  for  the  entire  needs  of  the 
country,  and  is  now  quoting  prices  at  approximately  what  the  raw 
stock  costs.  If  a  duty  is  placed  on  the  stock,  the  independents  can 
not  compete  with  the  Eastman  laboratories. 

The  producers  of  pictures  make  one  negative  and  the  prints  are 
made  in  the  laboratories.  If  the  Eastman  Co.  secures  a  monopoly 
of  the  laboratory  work,  it  will  be  in  a  position  to  dictate  any  price 
it  wishes. 

Films  sensitized  but  not  exposed : 

Witness :  Photostat  letter  of  the  Erbograph  Co.,  New  York  City, 
to  the  Pathescope  Co.  of  Canada  (Ltd.),  transmitted  to  the  Finance 
Committee  by  Coudert  Bros.,  counselors  at  law,  New  York,  N.  Y. 

Remarks.— The  photostat  letter  states  that  the  Erbograph  Co. 
would  be  unable  to  supply  the  Pathescope' Co.  of  Canada  with  prints 
on  Pathescope  stock,  as;  it  was  necessary  for  the  former  company  to 
become  a  party  to  an  agreement  calling  for  the  exclusive  use  of 
American-made  film.  This  letter  is  given  as  evidence  to  support 
the  charge  that  the  Eastman  Co.  is  seeking  to  eliminate  foreign  com- 
petition and  to  secure  complete  control  of  the  American  market. 

Filmq  sensitized  but  not  exposed : 

Witness:  Memorandum  from  the  Belgian  ambassador,  Washing- 
ton, transmitted  to  the  Finance  Committee  by  the  Secretary  of  State. 

Remft.rks. — The  firm  L.  Gevaert  &  Co.,  of  Vieux  Dieu,  Belgium, 
through  Mr.  Louis  Destenay,  director  of  the  Gevaert  Co.  of  Amer- 
ica (Inc.).  states  that  if  the  high  tariff  of  30  per  cent  should  be  im- 
posed on  this  product  the  American  company  will,  as  a  result,  be 
unable  to  import  in  the  future  and  that  they  would  as  a  consequence 
be  obliged  to  cease  purchasing  celluloid  from  the  American  Cellu- 
loid Co. 

The  point  is  made  that  the  German  and  French  film  manufacturers 
export  to  the  United  States  a  product  that  is  entirely  foreign,  while 
the  Gevaert  Co.  of  Belgium  exports  a  procluct  that  is.  in  origin  70 
per  cent  American.  Considering  the  very  high  percentage  of  Amer- 
ican material  entering  into  the  product  the  Gevaert  Co.  should 
benefit  by  the  drawback  tariff,  namely,  that  the  prospective  tariff 
should  apply  only  to  that  ad  valorem  quota  pertaining  to  the  Belgian 
percentage  value,  viz.  approximately  30  per  cent  of  the  total  value 
of  the  finished  product. 


520  DIGEST   OF   TARIFF    HEARINGS,    H.    R.    T4o6. 

PARAGRAPH  1452. — PIPES  AXD  SMOKERS'  ARTICLES. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

Witness:  Mr.  Leopold  Demuth,  representing  W.  M.  Detnuth  Co.,  New  York 
City. 

Hearings :  Pages  4357-4358. 

Rates  suggested. — Approves  of  paragraph  1452  as  written.  Re- 
quests that  articles  enumerated  in  paragraph  403  (brier  root  or 
brierwood,  ivy,  or  laurel  root,  etc.)  be  placed  on  the  free  list,  as  there 
is  no  substitute  found  in  this  country. 

(NOTE. — Mr.  Demuth's  statement  that  these  articles  were  free  prior 
to  the  present  tariff  act  overlooks  the  fact  that  they  were  dutiable 
under  the  Payne- Aldrich  Act.) 

PARAGRAPH  1454. — THERMOSTATIC  BOTTLES. 


WITNESSES. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES  : 

The   Simplex   Vacuum   Manufacturing   Co.,   Philadelphia,   Pa.     (Brief.) 
Manufacturers  of  thermos  and  vacuum  bottle  products.     (Brief.) 

Witness :  The  Simplex  Vacuum  Manufacturing  Co.,  Philadelphia, 
Pa.     (Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  brief  includes  the  following  table : 

Comparison  of  prices. 


German 

Simplex  wholesale 

quotation, 

quotation. 

G  erman  No. 

Simplex 
No. 

c.  i.  f. 

Baltimore 

or 

Jan.  1  to 

Since 

New  York. 

May  31. 

June  1. 

No.    ,lpint  
No.    ,  2  pints  
No.    ,  1  pint  
No.    ,2pints  

100 
101 
404 
405 

JO.  21 

I 

81.  37J 
2.  12J 

i.«3 

2.  374 

81.  124 
1.75 
1.37i 
2.00 

No.    ,lpint  j         406-C 

.48 

2.00 

1.75 

No.  7,  2  pints  
No.  8,  1  pint,  refill.... 

407-c 
414 

.78 
.13 

2.874 
.87$ 

2.50 
.75 

No.  8,  2  pints  

415 

.22 

1.25 

1.00 

At  these  prices  an  average  net  profit  of  10  per  cent  can  be  made 
under  normal  conditions.  Orders  are  being  taken  by  the  company 
at  an  extra  10  per  cent  discount  off  these  prices ;  that  is,  at  actual  cost, 
in  order  to  keep  the  plant  going  and  the  organization  intact. 

A  fuller  description  of  the  product  is  given  in  an  attached  memo- 
randum. 

Remarks. — A  copy  of  a  letter  addressed  to  the  company  by  E.  A. 
Krieger  and  Friedeberg,  Berlin,  Germany,  is  attached,  in  which  the 
foreign  concern  solicits  trade. 

Hearings :  Pages  4363-4365. 

Witness:  Manufacturers  of  thermos  and  vacuum  bottle  products. 
(Brief  of  Mr.  William  B.  Walker;  no  appearance  at  hearings.) 

Comparability. — The  brief  includes  a  table  contrasting  detailed 
German  and  domestic  costs  of  the  bottle  commanding  the  largest  sale 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  521 

in  this  country,  with  the  German  mark  taken  at  approximately  one- 
half  cent.  The  final  averages  of  the  13  included  items  work  out  at 
9.2  cents  for  the  German  and  101.1  cents  for  the  American  article. 

Rates  suggested. — The  brief  discusses  at  length  the  operation  of 
various  tariff  rates  and  shows  that  a  specific  duty  of  33  to  57  cents, 
plus  60  per  cent  on  the  foreign  selling  value,  will  be  needed  to  prevent 
the  closing  of  United  States  plants  employing  approximately  5,000 
persons.  On  American  valuation  the  total  duties  to  be  assessed 
would  range  from  43  to  72-J  cents  per  bottle,  according  to  size. 

PARAGRAPH  1457. — WHITE  BLEACHED  BEESWAX. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  OR  HIGHER  DUTIES: 

Witness:  Mr.  R.  J.  Mayer,   representing  the  Theodor  Leonard  Wax  Co. 

Hearings:  Pages  4292-4297. 

Costs  and  selling  prices. — Germany  is  delivering  this  material  at 
an  average  price  of  23  cents  a  pound.  The  crude  material  costs 
the  Theodor  Leonard  Wax  Co.  from  23  to  24  cents.  The  American 
product  can  not  be  made  and  put  on  the  market  for  less  than  about 
36  cents  a  pound. 

An  extract  from  copy  of  invoice,  page  4292,  of  Araujo  &  Co., 
Lisbon,  to  E.  A.  Bromund  &  Co.,  New  York,  shows  the  following 
prices :  E.  B.  1/20-20  cases  with  guaranteed,  pure  shredded  white 
beeswax:  G.  W.  Kilos,  1.310;  Tare,  Kilos,  294.7.  N.  W.  Kilos, 
1,016  —  at  pounds,  2,240,  at  2  1/2  c.,  dollars  $481.60.' 

Rates  suggested. — A  duty  of  either  20  per  cent  ad  valorem  on 
American  valuation  or  30  per  cent  ad  valorem  on  foreign  valua- 
tion, based  on  'the  supposition  that  the  crude  beeswax  will  be  re- 
tained on  the  free  list. 

Remarks.— K  brief  previously  filed  with  the  Committee  on  Ways 
and  Means  explained  why  white  bleached  beeswax  should  be  placed 
on  the  dutiable  list  and  not  in  the  free  list  with  crude  beeswax. 
Details  of  the  processes  of  manufacture  were  also  given. 

SCHEDULE    15.— FREE   LIST. 

PARAGRAPH  1504. — AGRICULTURAL  IMPLEMENTS,  AND  PARTS  or. 

WITNESSES,    AND   INTERESTS   REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

The  North  Wayne  Tool  Co.,  of  Hallowell,  Me.     (Brief.) 

Mr.  Finley  P.  Mount,  representing  manufacturers  of  agricultural  imple- 
ments. 

Mr.  William  K.  Payne,  representing  manufacturers  of  scythes,  corn  cut- 
ters, etc. 

The  Rixt'ord  Manufacturing  Co.,  East  Highgate,  Vt.     (Brief.) 

MARKING  PROVISIONS  (CANADA)  : 

The  Garden  City  Feeder  Co.,  Pella,  Iowa.     (Brief.) 

Witness:  The  North  Wayne  Tool  Co.,  of  Hallowell,  Me.  (Brief; 
no  appearance  at  hearings.) 

Attention  is  directed  to  the  pledges  of  the  Republican  Party  ap- 
pearing on  the  back  page  of  the  Republican  1920  campaign  text- 
book, as  follows: 


522 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 


The  Republican  Party  reaffirms  its  belief  in  the  protective  principle  and 
pledges  itself  to  a  revision  of  the  tariff  as  soon  as  conditions  shall  make  it 
necessary  for  the  preservation  of  the  home  market  for  American  labor,  agri- 
culture, and  industry. 

It  is  asserted  that,  in  the  Fordney  tariff  bill,  this  pledge  means  only 
a  plank  on  which  to  get  into  office,  for  American  manufacturers  of 
scythes,  sickles,  grass  hooks,  corn  knives,  etc.,  get  not  one  particle 
of  protection  on  their  products. 

If  the  company's  factory  has  to  shut  down,  or  to  diminish  the 
market  for  American  labor,  a  sign  will  be  made  of  this  pledge,  to 
hang  on  the  front  door. 

Protection  is  demanded  against  cheap  foreign  labor,  sufficient  to 
meet  the  difference  in  wages  and  exchange. 

Hearings :  Pages  4367-4370. 

Witness:  Mr.  Finley  P.  Mount,  representing  Manufacturers  of 
agricultural  implements. 

Costs  and  selling  prices. — The  wages  and  overhead  charges  in  the 
production  of  agricultural  implements  are  practically  the  same  in 
Canada  as  in  the  United  States.  Canadian  threshing  machines  and 
other  agricultural  implements  are  shipped  into  the  United  States. 
By  reason  of  the  adverse  exchange  rate  that  has  always  prevailed, 
the  Canadian  manufacturer  is  able  to  get  substantially  that  much 
more  profit  on  his  importations  into  the  United  States  than  the 
American  manufacturer  gets  on  his  into  Canada. 

Comparability. — The  witness  understands  that  more  than  90  per 
cent  of  all  importations  of  agricultural  implements  are  from  Canada. 
American  manufacturers  must  pay  on  agricultural  implements  ex- 
ported from  the  United  States  into  Canada  17-J  per  cent  duty  and  an 
additional  importation  tax  of  1  per  cent.  In  the  Canadian  market, 
the  Canadian  manufacturer  therefore  enjoys  the  advantage  of  this 
duty  against  the  American  manufacturer.  He  undersells  the  Ameri- 
can manufacturer  in  the  Canadian  market,  and  with  the  exchange 
advantage  can  undersell  him  in  the  United  States. 

Agricultural  implements  shipped  to  the  United  States  free,  prin- 
cipally from  Canada,  for  the  11  months  ending  as  follows : 

Nov.  30,  1918—  $664.327 

Nov.  30,  1919 • 3,077,617 

Nov.  30,  1920 5,  550.  561 

Specifically,  the  most  marked  increases  in  agricultural  implements 
shipped  from  Canada  to  the  United  States,  duty  free,  are  as  follows : 


1918 

1919 

1920 

$72  854 

$40,886 

$125  875 

(ream  separator  ..  ....... 

12,861 

5,085 

437,222 

p   it*     t 

7,120 

12,257 

78,714 

7.154 

6,686 

19,675 

15,847 

77,574 

670,  695 

14,716 

17,529 

1,597,498 

Years  ending  Mar.  31— 


Rates  suggested. — The  tariff  laws  of  the  United  States  should  be 
placed  on  a  reciprocal  basis  with  those  of  Canada,  in  so  far  as  they 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   "7456.  523 

relate  to  the  importation  into  either  country,  by  the  other,  of  the 
manufactured  products  referred  to  above.  The  farm  machinery 
manufacturers  of  the  United  States  believe  that  common  fairness 
entitles  them  to  ask  for  this  reciprocal  duty.  The  Canadian  manu- 
facturer does  not  undersell  the  American  manufacturer  in  the  United 
States,  but  he  makes  a  larger  profit  on  goods  shipped  into  the  United 
States,  and  with  this  profit  is  enabled  to,  and  does,  undersell  the 
American  manufacturer  in  Canada. 

Hearings :  Pages  4371-4372. 

Witness :  Mr.  William  K.  Payne,  representing  manufacturers  of 
scythes,  corn  cutters,  etc. 

Costs  and  (telling  prices. — The  cost  of  manufacturing  a  dozen 
scythes  in  the  United  States  is  $10.50.  The  freight  to  the  jobber  is 
50  cents  and,  with  a  profit  of  14  per  cent,  these  scythes  cost  the 
jobber,  delivered,  $12.50  per  dozen. 

Comparability. — Importers  are  freely  offering  competitive  scythes 
of  Swedish  manufacture  delivered  for  $9.50  per  dozen.  Scythes  of 
Austrian  manufacture  are  coming  in  at  $9  per  dozen  delivered. 

The  same  approximate  relation  exists  between  the  American  and 
the  competing  foreign  selling  prices  of  sickles,  grass  hooks,  and 
corn  knives. 

Kates  suggested. — Scythes,  sickles,  grass  hooks,  and  corn  knives 
to  be  restored  to  the  dutiable  schedule  with  a  duty  of  35  per  cent 
ad  valorem,  and  the  general  provision  for  all  other  agricultural 
implements,  if  left  on  the  free  list  to  be  so  amended  as  to  exclude 
these  small  hand  cutting  tools. 

Remarks. — The  industry  enjoyed  a  protective  tariff  until  the  Act 
of  1913  placed  its  products  on  the  free  list  under  the  provision  for 
"  all  other  agricultural  implements  of  any  kind  and  description, 
whether  specially  mentioned  herein  or  not."  This  paragraph  was 
framed  for  the  purposes  of  giving  the  farmer  some  relief  from  the 
high  prices  he  was  obliged  to  pay  for  expensive  farm  machinery, 
which  it  was  felt  were  caused  by  a  more  or  less  monopolistic  control 
of  the  production  of  tillage  and  harvesting  machinery. 

Whether  or  not  this  feeling  was  justified,  and  whether  or  not  the 
remedy  sought  has  been  effective,  the  witness  submits  that  scythes 
and  kindred  hand  cutting  tools  have  no  place  in  this  paragraph. 

The  average  cost  of  a  scythe  to  the  farmer,  who  uses  it  for  from 
5  to  10  years,  is  insignificant,  and  the  free  importation  of  foreign 
scythes  could  not  reduce  his  yearly  expenses  by  more  than  5  cents 
under  the  most  favorable  calculation.  While  the  scythe  is  generally 
thought  of  as  one  of  the  farmer's  tools,  the  fact  is  that  he  is  not 
the  chief  user  of  it.  By  far  the  largest  users  of  scythes  are  the  rail- 
road companies,  which  use  them  in  keeping  down  the  grass  on  their 
narrow  right  of  way. 

Witness:  The  Rixford  Manufacturing  Co.,  East  Highgate,  Vt. 
(Brief;  no  appearance  at  hearings.) 

Comparability. — The  company  had  a  considerable  shock  in  ex- 
amining the  Fordney  tariff  bill  to  note  that  it  carried  no  duty  on 
scythes  from  foreign  countries.  The  company  had  expected  that 
the  old  duty  of  35  per  cent,  which  was  in  effect  until  the  Wilson 
administration  went  into  power,  would  at  least  be  reestablished. 
They  had  hoped  for  a  40  per  cent  duty,  because,  even  with  the  old 


524  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

duty,  the  company  was  forced  to  meet  damaging  competition  from 
Austria;  scythes  are  manufactured  in  that  country  at  a  cost  with 
which  it  is  absolutely  impossible  to  compete.  Austria's  low  labor 
and  material  costs  afford  an  opportunity  to  sell  scythes  in  this 
country  at  such  a  low  figure  that  every  American  manufacturer 
will  find  himself  forced  either  to  shut  down  his  factory  or  operate 
it  at  a  loss. 

Rates  suggested* — The  company  urges  that  the  tariff  bill  be 
amended  in  such  a  manner  as  to  include  a  duty  of  at  least  35  per 
cent  on  foreign  scythes.  This  demand  is  a  real  necessity  to  the  wel- 
fare of  an  industry  which  at  best  is  far  from  remunerative. 

Witness:  The  Garden  City  Feeder  Co.,  Pella,  Iowa.  (Brief;  no 
appearance  at  hearings.) 

Remarks. — Attention  is  directed  to  the  provisions  in  the  Canadian 
tariff  relative  to  the  marking  requirements  on  imported  goods.  It 
is  requested  that  H.  B.  7456  be  scrutinized,  to  the  end  that  relief 
may  be  obtained  from  Canadian  provisions  requiring  the  marking  of 
machine  parts  imported  into  that  country  from  the  United  States. 

PARAGRAPH  1504. — SUGAR  MACHINERY. 
WITNESS,    AND    INTEREST    REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

The  American  Tool  &  Machine  Co.,  Hyde  Park,   Boston,  Mass.     (Brief; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — Labor  costs  are  much  lower  in  Scot- 
land than  in  the  United  States. 

Size  of  industry. — The  American  Tool  &  Machine  Co.,  employs 
normally  about  500  men,  nearly  all  of  whom  are  skilled  mechanics; 
it  pays  about  $600,000  a  year  in  wages.  In  1911  the  company's 
business  amounted  to  over  $690,000  and  in  1912  to  slightly  less 
than  $595,000,  over  62  per  cent  of  which  was  sugar  machinery. 

Rates  suggested. — A  rate  of  45  per  cent  ad  valorem  is  requested 
to  enable  the  domestic  industry  to  obtain  a  fair  share  of  the  Ameri- 
can business  and  to  enable  American  manufacturers  to  compete 
in  the  Cuban  market. 

Remarks. — In  1911  and  1913,  orders  which  should  have  been 
placed  here  went  to  Watson  Laidlaw  &  Co.,  Scotland,  because  of 
lower  prices. 

As  evidenced  during  the  recent  war,  the  equipment  of  the  do- 
mestic industry  is  well  suited  to  the  manufacture  of  powder  ma- 
chinery and  of  tools  required  in  the  production  of  various  war  sup- 
plies. 

PARAGRAPH  1509. — CRUDE  OR  NEEDLE  ANTIMONY. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  G.  C.  Riddell,  representing  the  Wah  Chang  Trading  Corporation. 

REQUESTING  RECLASSIFICATION  : 

Mr.  Martin  T.  Baldwin,  special  attorney,  office  of  the  assistant  attorney 
general.  New  York.      (Memorandum. ) 

Hearings :  Pages  4372-4374. 

Witness :  Mr.  G.  C.  Riddell,  representing  the  Wah  Chang  Trading 
Corporation. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  525 

Size  of  industi^y. — The  United  States  must,  in  the  main,  continue  to 
import  its  antimony  supplies,  the  natural  deposits  of  this  country 
being  deficient.  It 'is  further  an  absolute  certainty  that  the  bulk  of 
the  antimony  supply  of  the  world  must  continue  to  come  from  the 
Chinese  deposits. 

Rates  suggested. — The  present  act  carries  a  duty  of  10  per  cent  ad 
valorem  on  antimony  metal  and  other  products  of  antimony,  but 
in  H.  R.  7456  one  of*  these  products,  called  needle  or  liquated  anti- 
mony, is  transferred  to  the  frejp  list,  while  the  duty  on  antimony 
metal  is  increased.  Paragraph  376  retains  antimony  metal  on  the 
dutiable  list  at  H  cents  per  pound.  It  is  suggested  that  the  differ- 
ential between  antimony  metal  and  antimony  "  crude,  liquated  or 
needle."  should  be  $  cent  per  pound.  If  the  metal  is  to  be  dutiable, 
as  in  paragraph  376,  at  1|  cents  per  pound,  "  crude "  or  "  needle " 
should  carry  1  cent  per  pound,  and  paragraph  376  should  be  revised 
to  read  as  follows : 

Antimony  as  rej?ulus  or  metal  and  alloys  thereof,  in  which  antimony  is  the 
constituent  of  chief  vnlne,  1£  cents  per  pound;  antimony  a.s  crude,  needle,  or- 
liquated,  1  cent  per  pound. 

To  have  needle  or  liquated  antimony  on  the  free  list  would  have 
the  following  results:  It  would  eventually  completely  eliminate, 
the  importation  of  the  7,000  to  12,000  tons  of  antimony  metal  and 
oxide  now  brought  into  this  country  annually.  It  would  give  the* 
four  or  five  firms  that  are  in  the  antimony  refining  business  a 
monopoly.  The  needle  or  liquated  form  of  antimony  can  very  easily 
be  made  into  either  antimony  metal  or  oxide,  and  it  would  be  this 
form  of  antimony  that  would  become,  under  the  new  bill,  the  article 
of  commerce — a  commodity  which  would  be  shipped  here  from  China 
for  conversion  into  metal  or  oxide.  There  would  be  the  loss  of  the 
revenue  from  the  importation  of  the  product  known  as  "  needle 
liquated,  or  crude"  antimony,  and  at  the  same  time  the  long  estab- 
lished Chinese  smelting  industry  would  be  virtually  ruined,  to  no 
useful  purpose. 

Witness :  Mr.  Martin  T.  Baldwin,  special  attorney,  office  of  the 
assistant  attorney  general,  Xew  York.  (Memorandum.) 

Paragraph  1509  of  the  House  bill  provides  in  the  free  list  for 
"  antimony  ore  and  needle  or  liquated  antimon}7,  but  only  as  to  the 
antimony  content. " 

Mr.  B'aldwin  suggests  that  the  phrase  "but  only  as  to  antimony 
content ,"  does  not  seem  applicable  to  "  needle  or  liquated  antimony.  *' 
That  product  consists  only  of  sulphur  and  antimony  (sulphide  of 
antimony),  and  sulphur  is  itself  free  under  paragraph  1662. 

PARAGRAPH  1510. — ARCHIL  LIQUID. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES: 

Mr.  Maurice  Landin.  representing  the  Boreal  Chemical  Co.,  New  York  City. 
(Brief;  no  appearance  at  hearings.) 

Size  of  industry. — Seven  hundred  thousand  pounds  of  this  extract, 
including  cudbear,  a  by-product,  were  imported  in  1920.  A  few 


526  DIGEST  OF   TARIFF   HEARINGS,   H.  R.   7456. 

American  manufacturers  know  how  to  produce  this,  but  European 
competition  prevents  it. 

Rates  suggested. — A  small  duty. 

Remarks. — This  is  an  extract  of  the  archil  weed.  A  small  duty 
would  start  an  American  industry  and  be  a  source  of  revenue. 

PARAGRAPH  1513. — SULPHIDE  OF  ARSENIC. 
WITNESS,  AND  INTERESJ?  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Henry  M.  Eakin,  representing  manufacturers  of  the  State  of  Wash- 
ington. 

Hearings :  Pages  4374-4376. 

Size  of  industry. — The  interests  represented  by  the  witness  own 
deposits  of  arsenic  sulphide,  developed  equipped  for  production,  but 
at  present  inoperative.  The  arsenic  content  averages  140  pounds  to 
the  ton. 

Rates  suggested. — Five  cents  per  pound  on  red  arsenic,  to  meet  the 
competition  of  artificial  arsenic  sulphide  from  Europe. 

Remarks. — There  is  an  opportunity  here  to  produce  a  superior 
product — a  nonpoisonous  pigment  of  the  finest  quality. 

PARAGRAPH  1514. — AMERICAN  MERCHANDISE  RETURNED  AFTER  HAV- 
ING BEEN  EXPORTED. 


The  Merchants'  Association  of  New  York.     (Brief;  no  appearance  at  hearings.) 

Remarks. — The  association  urges  the  elimination  of  that  portion 
of  paragraph  1514  which  restricts  the  free  importation  of  returned 
American  merchandise  to  that  imported  by  or  for  account  of  the 
person  by  whom  it  was  exported  from  the  United  States*  In  so 
doing,  the  brief  refers  to  the  movement  of  merchandise  in  the  ordi- 
nary course  of  business,  and  not  to  the  extraordinary  conditions 
which  have  arisen  as  the  result  of  the  sale  of  large  quantities  of  war 
materials  in  France.  Some  of  this  has  been  returned  to  the  United 
States  and  distributed  in  this  country  at  a  price  underselling  the 
American  market.  That  situation,  temporary  in  nature,  could 
readily  be  provided  for  by  separate  emergency  legislation  applicable 
only  to  this  class  of  merchandise. 

Instances  are  constantly  occurring  in  which  exported  American 
merchandise  must  be  brought  back  to  the  United  States  by  persons 
other  than  the  shipper.  In  cases  where  an  American  shipper  has 
gone  out  of  business,  and  where  the  foreign  customer  refuses  to 
accept  the  merchandise,  the  domestic  bank  or  others,  not  being  the 
shipper,  who  would  become  the  actual  owners  of  the  merchandise 
could  not  import  the  goods  free  of  duty  under  the  provisions  of  the 
paragraph  in  question. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  527 

PARAGRAPH  1515. — ASBESTOS  (CRUDE). 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Hon.  Henry  F.  Ashurst,  United  States  Senator  from  Arizona,  representing 
asbestos  producers. 

Hearings:  Pages  4377-4381. 

Size  of  industry. — Known  for  more  than  2,000  years  as  a  heat  in- 
sulator, the  use  of  asbestos  has  greatly  increased  during  the  last  half 
century.  To-day  a  capital  of  over  a  hundred  million  dollars  is  in- 
vested in  an  industry  employing  over  20,000  workers  and  having  an 
annual  turnover  equal  to  the  capital.  It  was  stated  by  a  witness  be- 
fore the  Committee  on  Ways  and  Means  that  $8,000,000  worth  of 
wooden  shingles  were  replaced  in  1920  by  asbestos  shingles. 

C&mparabdity. — The  great  labor  advantage  enjoyed  by  European 
manufacturers  in  regard  to  Avages  is  supplemented  by  their  control 
of  the  second  largest  asbestos  deposits  in  Rhodesia  and  South  Africa, 
where  the  raw  asbestos  is  produced  by  Kaffir  labor  at  an  average  wage 
of  25  cents  per  day. 

Rates  suggested. — A  flat  duty  of  at  least  20  cents  per  pound  on  all 
asbestos  ore  and  fiber. 

Remarks — The  absence  of  iron  from  the  Arizona  asbestos  makes 
it  a  surer  nonconductor  of  heat,  thus  adding  to  its  value  for  fire- 
protection  purposes. 

PARAGRAPH  1517. — JUTE  BAGGING  FOR  COVERING  RAW  COTTON. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Julius  Werner,  representing  Mente  &  Co.,  New  Orleans,  La. 
Mr.  James  W.  Mansou,  representing  Young  &  Metzner,  Long  Island  City, 
N.  Y. 

Hearings :  Pages  4381-4383. 

Witness :  Mr.  Julius  Werner,  representing  Mente  &  Co. 

Size  of  industry. — In  the  past  the  independent  bagging  manufac- 
turers, whom  the  witness  represents,  have  supplied  about  one-half  of 
all  the  bagging  used  for  covering  the  American  cotton  crop.  With 
the  two  largest  American  bagging  firms,  whose  combined  output  is 
equal  to  one-half  of  the  domestic  production,  moving  their  plants  to 
India,  it  is  only  a  question  of  time  when  all  the  bagging  will  be  im- 
ported and  independent  domestic  bagging  producers  will  be  forced 
to  close  their  factories. 

Rates  suggested. — Paragraph  1008,  relating  to  jute  cloths,  to  re- 
main as  it  is,  and  paragraph  1517,  relating  to  bagging,  to  be  stricken 
out.  If  this  is  done  both  bagging  and  burlap  will  be  dutiable  at  1 
cent  a  pound.  Bagging  under  H.  JR.  7456  is  free  of  duty. 

Remarks. — A  duty  on  bagging  is  requested  on  account  of  two  of 
the  American  manufacturers  moving  their  plants  to  Calcutta.  These 
two  companies  have  appeared  in  all  tariff  hearings  in  the  past,  re- 


528  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

questing  a  duty  on  bagging ;  this  year  they  have  not  appeared.  It  is 
requested  that  the  duty  on  bagging  be  the  same  as  that  applied  on 
other  jute  cloths;  namely,  1  cent  per  pound.  The  point  should  be 
emphasized  that  a  duty  of  1  cent  per  pound  is  the  minimum  that  will 
afford  the  necessary  protection.  The  rate  of  six-tenths  of  1  cent  per 
square  yard  afforded  in  the  acts  of  1897  and  1909  will  not  now  be 
sufficient,  owing  to  an  advance  of  over  100  per  cent  in  labor  rates  and 
because  a  large  amount  of  the  imported  bagging  will  weigh  4  pounds 
to  the  square  yard,  instead  of  2  pounds  as  formerly.  Six-tenths  of  1 
cent  per  square  yard  is  only  about  one-eighth  of  1  cent  per  pound 
and  would  furnish  no  protection  against  the  American  firms  now 
located  in  India.  While  burlap,  bagging,  and  steel  ties  for  tying 
up  cotton  bales  are  all  on  the  free  list  in  the  act  of  1913,  they  were 
all  dutiable  in  the  Republican  tariffs  of  the  past.  In  H.  R.  7456, 
however,  bagging  is  the  only  one  of  the  three  articles  on  the  free  list. 

Hearings :  Pages  4383-4393. 

Witness:  Mr.  James  W.  Manson,  representing  Young  and  Metz- 
ner,  Long  Island  City,  N.  Y. 

Costs  and  selling  prices. — A  pay  roll,  including  both  Indian  and 
white  labor,  of  an  English  jute  mill  located  in  Calcutta  shows  their 
pay  for  a  week  of  72  hours  to  have  averaged  $1.38  per  operative. 
The  wages  paid  to  corresponding  classes  of  workers  in  American  jute 
mills  range  from  $24  to  $30  per  week.  Two  to  two  and  and  one-half 
Indian  laborers  are  equal  in  efficiency  to  one  American.  Indian 
mills  can  buy  raw  jute  in  India  at  about  1  cent  per  pound.  Freight 
charges  and  cost  of  manufacturing  bagging  causes  the  present  price 
of  domestic  bagging  to  amount  to  about  8£  cents  per  yard. 

Size  of  industry. — Out  of  a  normal  cotton  crop  requiring  about 
60.000,000  yards  of  bagging,  the-  independent  manufacturers,  in- 
cluding those  making  bagging  from  raw  sugar  bags,  supply  a  total 
of  25,000,000  yards.  The  plant  of  the  witness,  located  in  Long 
Island  City,  has  a  value  of  about  $1,000,000. 

Comparability. — Bagging  made  from  bags  purchased  in  this 
country  from  Cuban  sugar  refiners  is  cheaper  material  than  domestic 
bagging.  The  sugar  bags  are  made  in  India,  exported  to  Cuba, 
filled  there  with  raw  sugar  and  exported  to  this  country.  The  five 
firms  here  represented  clean  these  bags,  cut  them  up,  and  sew  them 
into  bagging  for  covering  raw  cotton.  There  has  never  been  a  time 
during  the  past  thirty  years  when  the  witness's  company  could  not 
have  sold  twice  its  output.  Sugar  bag  cloth  is  very  popular  with 
farmers  and  ginners,  much  more  so  than  the  new  bagging  made  in 
this  country  from  imported  jute  butts. 

Remarks. — The  two  large  American  companies  are  now  going  to 
Calcutta.  They  will  buy  Indian  material,  their  labor  will  be  Indian, 
and  the  money  expended  will  remain  in  India.  They  will  be  under 
no  such  labor  regulations  and  under  no  such  taxation  as  the  dome-tic 
producers  still  operating  in  this  country.  Every  dollar  the  domestic 
bagging  producer  expends,  remains  in  the  United  States. 


DIGEST   OF   TARIFF   HEARINGS,   H.   B.   74-36.  529 

PARAGRAPH  1520. — BIBLES. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 
FAVORING  HIGHEK  DUTIES  : 

Mr.  C.  F.  Hint,  representing  the  John  C.  Winston  Co.,  Philadelphia.  Pa. 
The  National  Publishing  Co.     (Brief.) 

Hearings :  Pages  4393-4396. 

Witness:  Mr.  C.  F.  Kint. 

Size  of  industry. — The  firm  manufactures  and  publishes  nearly  500 
styles  of  Bibles,  in  addition  to  general  publications. 

Com  payability. — American  Bibles  are  mainly  produced  in  New 
York  and  Philadelphia.  The  Philadelphia  concerns  are  all  con- 
trolled by  American  capital ;  the  New  York  concerns  are  either  con- 
trolled by  English  capital  or  they  have  English  affiliations,  the 
Oxford  University  press,  for  example.  On  the  basis  of  direct  in- 
formation from  London  the  witness  gave  present  printers'  and 
binders'  wages  in  London  as  $21.25  per  week,  as  compared  with  his 
firm's  wages  of  $44  to  $49.50  for  printers  and  $34  to  $43.50  for 
binders — practically  double  the  English  rates.  The  margin  of  profit 
in  Bibles  has  always  been  small. 

Witness:  The  National  Publishing  Co.  (Brief:  no  appearance 
at  hearings.) 

Rates  suggested. — The  company  objects  to  Bibles  being  placed  on 
the  free  list.  This  would  work  great  injury  to  publishers  who  print 
and  bind  all  their  Bibles  in  the  United  States.  In  addition  to  the 
labor  cost  in  Great  Britain  being  about  half  of  the  cost  in  America, 
American  publishers  import  considerable  paper  upon  which  they 
have  to  pay  a  duty  of  10  per  cent  plus,  which  makes  the  cost  o'f 
production  much  higher  in  America.  If  Bibles  are  placed  on  the 
free  list,  it  will  set  up  unfair  competition. 

PARAGRAPH  1523. — BTSMUTH. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES  :    . 

Mr.  William  Loeb.  jr..  representing  the  American  Smelting  &  Refining  Co. 

Hearings :  Pages  4396-4397. 

f'osts  and  selling  prices. — Bismuth  is  produced  in  the  United 
States  entirely  as  a  by-product.  The  cost  of  production  depends 
upon  the  percentage  of  each  operation  which  is  charged  against 
bismuth  as  compared  with  the  other  products  recovered  from  the 
smelting  operations.  The  cost  of  production  can,  therefore,  be 
stated  only  approximately,  as  each  company's  figures  are  influenced 
by  their  accounting  methods.  The  highest  cost  of  production  for 
the  year  1920  was  $2.14  per  pound.  It  is  believed  that  the  cost  of 
production  will  be  materially  lowered  during  the  latter  part  of  1921 
and  thereafter,  and  it  is  hoped  to  bring  it  down  to  approximately 
$1  per  pound. 

The  cost  of  foreign  production  is  unknown,  but  must  be  low.  due 
to  the  working  of  high-grade  bismuth  ores  containing  from  25  per 
cent  to  TO  per  cent  bismuth.  When  these  figures  were  made  up,  the 


530  DIGEST   OF   TARIFF    HEARINGS,   H.   R,    7456. 

market  price  was  from  $1.35  to  $1.40  per  pound.  With  the  present 
high  rate  of  exchange,  the  price  is  about  $1.55  to  $1.60  per  pound. 

As  bismuth  is  produced  as  a  by-product  only,  and  is  contained  in 
substantial  quantities  in  various  lead  ores,  the  United  States  should 
conserve  its  raw  material  assets  by  encouraging  smelters  to  recover 
this  valuable  material.  There  is  every  reason  to  believe  that  the 
domestic  production  can  be  increased  to  take  care  of  the  domestic 
consumption. 

Rates  suggested, — A  specific  duty  of  25  cents  per  pound  on  refined 
bismuth  metal,  in  order  to  protect  American  producers  against 
foreign  low-cost  producers.  Bismuth  salts  and  preparations  are 
dutiable  at  25  per  cent  ad  valorem  as  against  a  former  protection 
of  10  per  cent  ad  valorem. 

The  witness  suggests  that  the  duty  on  bismuth  salts  and  other 
preparations  be  changed  to  20  cents  per  pound,  plus  25  per  cent 
ad  valorem,  because  0.8  of  a  pound  of  bismuth  is  used  in  manufac- 
turing 1  pound  of  the  usual  bismuth  salt;  hence,  0.8  of  25  cents  per 
pound  would  give  20  cents  per  pound  additional  protection  for  each 
pound  of  bismuth  salts. 

PARAGRAPH  1527. — BONES. 


SUGGESTING  REVISION  OF  PARAGRAPH  : 

Baugh  &  Sons  Co.,  Philadelphia,  Pa.     (Brief;  no  appearance  at  hearings.) 

See  hearings  before  Ways  and  Means  Committee  (pp.  3529- 
3530),  in  which  this  and  other  firms  describe  the  following  terms  as 
properly  listing  the  materials  referred  to : 

Bones,  crude,  whole,  crushed  or  ground,  bone  meal,  steamed  bone,  calcined 
bone,  and  bone  dust,  crude  bone  ash,  also  spent  or  discard  bone  black. 

These  constitute  raw  materials  and  should,  as  such,  be  on  the  free 
list. 

PARAGRAPHS  1529-1532. — EDUCATIONAL  BOOKS. 

WITNESS. 

FAVORING  LOWER  DUTIES.  • 

Mr.  M.  L.  Raney,  librarian  of  Johns  Hopkins  University,  Baltimore,  Md. 

Hearings :  Pages  4398-4401. 

The  witness  submitted  a  brief  objecting  to  the  provisions  of  H.  E. 
7456,  dealing  with  English  books  more  than  20  years  old,  foreign- 
language  books,  school  textbooks,  and  immigrants'  books  if  valued 
at  more  than  $250.  The  potential  effect  of  these  provisions  is  dis- 
cussed at  length  and  a  contrast  is  drawn  between  them  and  the  regula- 
tions in  force  in  other  countries.  "  The  Old  World  is  virtually  of 
one  opinion  on  this  business." 

As  regards  the  effect  on  libraries,  it  is  pointed  out  that  a  great  in- 
crease in  clerical  work  will  be  entailed  by  the  affidavit  provisions.  It 
is  urged  that  the  typothetse,  lithographers,  and  bookbinders  who 
favor  the  provisions  of  the  bill  have  a  worthy  'dm  but  a  mistaken 
notion  of  the  way  to  obtain  it. 

The  brief  sets  forth  the  language  necessary  f  ^  effect  the  changes 
regarded  as  necessary. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  531 

PARAGRAPH  1531. — RELIGIOUS  BOOKS. 

WITNESS,  AND  INTEREST  BEPBESENTTX 

FAVORING  PROPOSED  DUTIES: 

Rev.  M.  J.  Curley.     (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — The  witness  desires  that  all  books  of  a  religious 
character  used  by  the  laity  or  the  church,  printed  either  in  English 
or  in  a  foreign  language,  especially  such  books  as  are  used  by  the 
Catholic  faith,  be  placed  on  the  free  list. 

PARAGRAPH  1539. — CADMIUM. 

WITNESSES. 
FAVORING  HIGHER  DUTIES  : 

The  American  Smelting  &  Refining  Co. 

The  Grasselli  Chemical  Co.,  Cleveland,  Ohio.     (Brief.) 

Hearings :  Pages  4396-4397. 

Witness :  The  American  Smelting  &  Refining  Co. 

Costs  and  selling  prices. — Cadmium  being  a  by-product,  the  cost 
of  production,  as  figured  by  the  producing  company,  depends  en- 
tirely upon  what  proportion  of  each  operation  is  charged  against 
this  particular  by-product  as  compared  with  other  by-products  or 
major  metals. 

So  far  as  the  witness  can  now  ascertain,  the  highest  cost  of  pro- 
duction figured  by  any  of  the  principal  producers  was  $1.172  per 
pound  for  1920  arid  $1.69  for  1921.  Other  costs  will  range  below 
these  figures,  down  to  somewhat  less  than  $1  per  pound. 

In  1920  the  United  States  produced  129,283  pounds.  The  average 
sale  price  was  $1.17  per  pound. 

Comparability. — The  German  cost  is  unknown,  but  as  German 
producers  are  pressing  sales  at  as  low  as  75  cents  per  pound  their 
cost  is  probably  extremely  low.  This  is  substantiated  by  the  general 
knowledge  that  all  German  products  produced  from  100  per  cent 
German  raw  materials  and  labor  are  ridiculously  low,  as  a  result 
of  the  depreciated  mark  currency. 

Cadmium  is  used  in  very  small  quantities  in  a  variety  of  ways, 
chiefly  in  alloys. 

Rates  suggested. — As  a  by-product  industry,  cadmium  should  be 
protected  so  that  the  raw  material  resources  of  the  country  shall 
not  be  wasted.  A  specific  duty  of  25  cents  per  pound  is  suggested. 

Remarks. — In  a  pamphlet  on  cadmium  (United  States  Geological 
Survey.  Mineral  resources  of  the  United  States,  1920),  it  is  estimated 
that  600  short  tons  of  cadmium  accumulate  annually  in  the  various 
plants  in  this  country  arid  is  not  recovered  as  metallic  cadmium. 
In  other  words,  only  about  one  out  of  every  ten  tons  of  recoverable 
cadmium  is  actually  recovered. 

Cadmium  sulphide  carries  an  ad  valorem  rate  of  25  per  cent  under 
the  pigment  section;  a  duty  on  cadmium  metal  would  therefore  be 
quite  consistent. 

Witness :  The  Grasselli  Chemical  Co.,  Cleveland.  Ohio.  (Brief ;  no 
appearance  at  hearings.) 

Costs  and  selling  prices. — Cadmium  metal  is  now  quoted  at  from 
$1  to  $1.10  per  pound:  cadmium  sulphite  (paragraph  63)  at  $1.15  to 


532  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

$1.25  per  pound.  No  figures  as  to  market  prices  of  cadmium  sulphate 
and  cadmium  hydrate  are  given. 

Size  of  industwj. — There  are  five  producers  of  metallic  cadmium  in 
the  United  States.  Production  increased  from  26,152  pounds  in  1911 
to  207,408  pounds  in  1917.  For  the  period  1916  to  1920,  inclusive,  the 
average  annual  consumption  of  cadmium  metal  was  about  127.000 
pounds,  while  the  capacity  for  production  is  about  350,000  pounds. 
In  1911,  the  United  States  production  of  cadmium  sulphite  was  2.392 
pounds,  increasing  to  22,723  pounds  in  1914  and  to  51,702  pounds  in 
1918.  This  last  figure  was  doubtless  in  excess  of  consumption,  since 
production  in  1919  and  1920  was  only  31,197  pounds  and  32.133 
pounds,  respectively. 

Comparability. — The  production  of  cadmium  metal  in  Germany 
increased  from  82,000  pounds  in  1915  to  236,000  pounds  in  1918.  No 
figures  are  available  as  to  the  German  production  of  cadmium  sul- 
phite, but  prior  to  1914  Germany  exported  both  products  to  the 
United  States. 

Rates  suggested. — Since  the  domestic  producing  capacity  exceeds 
consumption,  protection  is  asked  to  enable  the  American  industry  to 
keep  on  equal  terms  with  Germany.  Cadmium  metal,  cadmium  sul- 
phite, cadmium  sulphate,  cadmium  hydrate,  and  all  chemical  com- 
pounds and  mixtures  containing  cadmium  should  be  grouped  in  one 
paragraph  and  made  dutiable  at  the  specific  rate  of  25  cents  per 
pound. 

PARAGRAPH  1540. — ACETATE  OF  LIME. 

WITNESSES. 
FAVORING  HIGHER  DUTIES  : 

Ten  chemical  companies,  Will'amsport,  Pa.     (Brief:  no  appearance  at  hear- 
ings.) 

Rates  suggested. — Seventeen  and  one-half  per  cent  ad  valorem, 
same  as  the  Canadian  duty. 

Remarks. — Free  entry  of  acetate  of  lime  and  charcoal  would  result 
in  the  shutting  down  of  the  wood  chemical  industry  in  Pennsylvania ; 
adequate  protection  for  these  articles  is  requested. 

PARAGRAPH  1541. — CASH  REGISTERS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  H.  A.  Savage,  representing  the  American  Cash  Register  Co..  the  St. 
Louis  Cash  Register  Co.,  and  the  Michigan  Machine  Co..  the  three  so- 
called  independent  cash-register  companies  in  the  United  States. 

The  St.  Louis  Cash  Register  Co.,  St.  Louis,  Mo.     (Brief.) 

Hearings :  Pages  4404-4413. 

Witness:  Mr.  H.  A.  Savage  (as  above). 

Costs  and   selling   prices. — German   manufacturers    have    quoted 

6 rices  very  much  below  the  actual  cost  of  production  in  this  country, 
etail  prices  vary  from  $40  to  $650  for  the  cash  registers  made  by 
the  companies  represented  by  the  witness. 

'Comparability. — Prior  to  the  issuance  of  an  injunction  against  the 
National  Cash  Register  Co.,  that  company  sold  cash  registers  of  cer- 
tain competitive  models  at  a  price  below  the  cost  of  production  and 


DIGEST   OF  TARIFF   HEARINGS,  H.  R.   7456.  533 

made  up  its  loss  on  other  models  not  manufactured  by  competitors, 
these  models  being  sold  at  a  very  high  price,  with  resulting  large 
profits.  This  was  done  to  stifle  and  throttle  competition  in  the 
united  States,  and  the  means  used  were  highly  successful.  The 
National  Cash  Register  Co.  now  has  a  factory  in  Germany,  and  its 
cash  registers  are  known  as  the  Anker  brand.  Germany  has  very 
recently  increased  the  duty  upon  cash  registers  from  20  marks  to 
1,200  marks  per  100  kilograms. 

Size  of  industry. — There  are  now  employed  by  the  cash  register 
companies  in  the  United  States  between  20,000  and  25,000  men. 

Hates  suggested. — The  witness  asks  for  a  25  per  cent  ad  valorem 
duty  for  the  following  reasons:  To  secure  revenue;  to  protect  the 
great  mass  of  American  merchants  against  a  monopoly;  to  protect 
domestic  labor  against  the  cheaper  foreign  labor;  and  to  protect 
American  capital  invested  by  manufacturers,  other  than  the  National 
Cash  Register  Co.,  in  the.  cash  register  industry. 

Witness :  The  St.  Louis  Cash  Register  Co.,  St.  Louis,  Mo.  (Brief ; 
no  appearance  at  hearings.) 

Size  of  industry. — The  witness's  company  has  $225,000  invested; 
manufactures  15  models;  and  employs,  in  normal  times,  more  than 
150  skilled  mechanics. 

Comparability. — The  brief  refers  to  the  much  lower  cost  of  mate- 
rial and  labor,  and  the  highly  appreciated  value  of  the  United  States 
dollar,  in  foreign  countries,  the  United  States  thus  offering  a  very 
advantageous  market  for  foreign  manufacturers.  As  a  concrete 
instance,  the  Anker  Cash  Register  Co.  of  Bielefeld",  Germany,  man- 
ufactures many  styles  of  what  are  believed  to  be  cheaply  constructed 
cash  registers,  and  have  already  appointed  representatives  in  the 
United  States.  The  St.  Louis 'company  also  understands  that  a 
subsidiary  of  the  Krupp  Gun  Works,  of  Essen,  Germany,  may  very 
soon  enter  the  American  market  with  a  very  complete  line  of  cash 
registers,  to  be  sold  at  a  very  low  price. 

The  representative  of  the  Anker  Cash  Register  Co.  lays  great 
stress  upon  the  fact  that  the  United  States  has  imposed  no  import 
duty  on  cash  registers,  and  this,  combined  with  the  lower  cost  of 
German  labor  and  material,  makes  it  possible  for  his  company  to 
very  much  undersell  the  American  manufacturers.  Prices  already 
quoted  f.  o.  b.  New  York  were  so  low  that  the  St.  Louis  company 
could  not  hope  to  compete  with  them  and  survive.  If  these  German- 
made  cash  registers  can  enter  this  country  duty  free,  they  can  most 
surely  be  sold  at  a  price  that  will  completely  destroy  the  business  of 
the  St.  Louis  company  and  two  or  three  other  independent  manufac- 
turers. 

fiates  suggested. — The  Dominion  of  Canada  imposes  a  30  per  cent, 
ad  valorem  import  duty,  and  Mexico  a  duty  of  30  cents  per  kilo — 
approximately  15  per  cent  of  the  cost  on  American  made  goods — OP 
cash  registers.  Neither  Canada  nor  Mexico  has  a  cash  register  in- 
dustry to  protect.  In  view  of  the  higher  wages  paid  to  American 
workmen,  and  the  increased  cost  of  material  in  the  United  States, 
the  company  suggests  a  40  per  cent  ad  valorem  duty  on  cash  register" 
and  cash-register  parts,  whether  completed  or  in  any  stage  of  pro- 
cess or  assembly,  and  including  also  wood  (and)  or  metal  bases  and 
wood  (and)  orWtal  cash  drawers. 
77134—22 35 


534  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    745G. 

PARAGRAPH  1541. — SEWING  MACHINES. 
*    WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  H.  M.  Huffman,  representing  the  independent  family  sewing-machine 

manufacturers  of  the  United  States. 
.Mr.   Lucius  X.   Littauer,   representing   the   Metropolitan    Sewing   Machim 

Corporation. 

Mr.  John  W.  Orin,  representing  the  Johnson  Shuttle  Co. 
The  Sewing  Machine  Manufacturers'  Association.     (Brief.) 

FAVORING  PROPOSED  DUTIES  : 

Dubrow   &   Hearne,    importers   of   machinery   and   supplies,   chiefly    frou 
Germany.     (Brief.) 

Hearings :  Pages  4413^417. 

Witness :  Mr.  H.  M.  Huffman,  representing  the  independent  f  amilj 
sewing-machine  manufacturers  of  the  United  States. 

Costs  and  selling  prices. — The  increase  in  the  labor  cost  over  the 
prewar  period  is  roughly  120  per  cent,  and  reductions  have  been 
only  about  20  per  cent,  leaving  the  cost  just  about  double  the  prewar. 

Labor  is  the  controlling  factor  in  the  cost  of  the  family  sewing 
machines,  being  62J  per  cent  of  the  total.  German  wages  approxi- 
mate but  12  per  cent  of  the  wages  paid  American  workmen  in  the 
same  trades.  The  ordinary  family  sewing  machine  sells  at  from  $30 
to  $75.  The  $75  machine  is  sold  with  high  selling  expense ;  the 
factory  cost  would  run  about  $40.  The  differential  in  American  labor 
and  German  labor  is  reflected  in  recent  quotations  of  standard  Ger- 
man sewing  machines  offered  f.  o.  b.  Hamburg,  boxed,  and  export 
duty  paid,  at  30  per  cent  less  than  the  actual  cost  of  labor  and  ma- 
terial alone  in  comparable  American  machines.  There  are  25  such 
German  sewing-machine  factories;  large  quantities  of  Singer  for- 
eign-made machines  are  being  sold  on  the  American  market,  and  at 
no  saving  to  the  American  consumer  over  the  price  of  the  American- 
made  article. 

Size  of  industry. — The  independent  family  sewing-machine  man- 
ufacturers represent  an  aggregate  capital  investment  of  over  $18,- 
000,000.  Their  sales  at  wholesale  value  in  the  year  1919  amounted 
to'  $13,500,000.  Workmen  employed  directly  in  production  of  that 
output  number  8,300  in  addition  to  those  engaged  in  distribution 
service  and  the  fabrication  of  material.  Wages  paid  approximate 
$7,500,000  annually. 

Comparability. — Shortly  after  the  passage  of  the  Underwood  bill, 
in  1913,  the  German  manufacturers,  numbering  two  and  one-half 
times  the  number  of  American,  with  one  and  one-half  times  the  out- 
put, instituted  a  campaign  for  business  in  this  country.  But  for 
the  intervention  of  the  war,  they  would  have  supplanted  American 
family  sewing  machines  and  ruined  the  American  industry,  owing  to 
their  ability  greatly  to  undersell  American  manufacturers  in  the 
American  market  by  reason  of  the  much  lower  cost  of  production. 
Germany  and  Scotland,  which  are  the  two  great  producing  nations 
of  sewing  machines,  were  prevented  from  exporting  by  reason  of 
the  war.  This  left  the  market  open  to  American  manufacturers, 
who  exported  sewing  machines  during  that  period  in  large  quanti- 
ties. Exports  increased  from  $7,793,718  in  1918  to  $12,751,268  in 


DIGEST  OF   TARIFF    HEARINGS,   H.   R.    7456.  535 

1920.  but  dropped  to  $6.209,925  for  the  first  10  months  of  1921. 
There  is  no  chance  to  continue  exportations  to  Europe  now,  with 
Germany  back  on  the  job. 

Rates  suggested. — Sewing  machines  to  be  taken  fpom  the  free  list, 
and  a  minimum  duty  of  30  per  cent,  based  upon  American  valuation, 
to  be  levied  on  family  sewing  machines,  in  whole  or  in  part,  includ- 
ing repair  parts.  This  duty  will  partially  offset  the  great  advantage 
held  by  German  sewing-machine  manufacturers  on  account  of  lower 
labor  costs,  and  will  yet  leave  them  on  a  fair  and  equitable  basis  of 
competition  with  American  manufacturers.  The  industry  has  no 
protection  from  patents,  labor-saving  machinery,  or  special  sources 
of  raw  material. 

Hearings:  Pages  4417^418. 

Witness:  Mr.  Lucius  X.  Littauer,  representing  the  Metropolitan 
Sewing  Machine  Corporation. 

Costs  and  selling  prices. — The  witness  appeared  as  a  manufac- 
turer of  sewing  machines,  not  the  kind  used  for  household  purposes, 
but  especially  adapted  for  economy  in  manufacturing  and  selling  at 
from  $150  to  $300.  The  Underwood  tariff  gave  these  a  duty  of  20 
per  cent  ad  valorem  when  exceeding  $75  in  value. 

Rates  suggested. — It  will  be  impossible  to  compete  with  German 
imports  under  the  conditions  existing  from  the  placing  of  these  ma- 
chines on  the  free  list.  In  11  months  of  the  year  1920,  1.273  machines 
were  so  imported:  in  11  months  of  the  year  1921  this  figure  rose  to 
11,541.  It  is  requested  that  the  $75  provision  of  the  Underwood 
tariff  be  incorporated  in  H.  R.  7456.  As  defined  by  the  witness, 
this  provision  would  extend  also  to  cash  registers  and  all  other  itenv 
included  in  paragraph  1541. 

Hearings :  Page  4419. 

Witness :  Mr.  John  W.  Orin.  representing  the  Johnson  Shuttle  Co. 

Costs  and  selling  prices. — For  several  years  prior  to  1913  shuttles 
for  sewing  machines  were  manufactured  at  a  cost  of  17  cents  each. 
They  were  sold  to  the  jobber,  who  bore  the  boxing,  shipping,  and 
selling  expenses,  at  20  cents  a  piece.  He  sold  them  to  the  retailer  for 
50  cents  each  and  the  retailer  sold  them  to  the  consumer  for  $1.  The 
Underwood  bill  put  the  shuttle  on  the  free  list,  and  immediately  Ger- 
man shuttles  came  to  this  country,  laid  down  at  11  cents  each. 

Size  of  industnj. — At  the  time  of  the  passage  of  the  Underwood 
bill,  the  witness's  factory  was  employing  35  men,  30  of  whom  were 
the  heads  of  families,  but  the  11-cent^German  shuttle  from  Germany 
against  the  17  cents  cost  of  the  American  forced  the  company  out  of 
business.  It  remained  out  for  two  years,  until  the  war  began  and 
stopped  the  importation  of  German  shuttles. 

Comparability. — During  the  time  that  the  company's  factory  was 
shut  down,  the  price  of  shuttles  to  the  retailer  was  still  50  cents  and 
the  price  to  the  consumer  was  $1.  The  difference  between  the  11 
cents  and  the  20  cents  was  added  to  the  jobber's  profit. 

Rates  suggested. — Witness  asks  that  sewing  machines  and  their 
parts,  including  repair  parts,  have  a  duty  of  30  per  cent  ad  valorem. 


536 


DIGEST   OF   TARIFF   HEARINGS,,   H.   R,    7456. 


Witness:  The  Sewing  Machine  Manufacturers'  Association. 
(Brief;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — The  present  scale  of  wages  in  the  United 
States  is  fully  100  per  cent  higher  than  the  prewar  schedule.  The 
German  prewar  wage  scale  was  approximately  50  per  cent  of  the 
American.  The  present  German  wage  scale  is  infinitely  less  than  the 
prewar.  The  following  is  a  comparative  scale  of  wages  paid  at  the 
present  time,  per  day  of  8  hours,  with  due  allowance  for  the  de- 
preciated mark : 


Germany. 

United 

States. 

Machinists  

Cents. 
49 

$4.80 

58 

4  60 

34 

2  88 

Holders  

48 

4.80 

Milling-machine  operators  

46 

4.40 

The  percentages  of  the  total  domestic  cost  of  an  average  sewing 
machine  at  the  present  time  are :  Labor,  62^  per  cent ;  material,  37£. 

The  table  below  gives  German  sales  prices  (quoted  by  two  German 
manufacturers)  and  American  factory  costs.  German  prices  are 
f.  o.  b.  Hamburg  with  discount  of  2  and  4  per  cent. 


Germany. 

United 
States. 

"P"  iron-base  hand  machine..  . 

$5.89 

$8.02 

7  62 

13  31 

'B"  iron-  base  hand  machine  

9.22 

9.68 

'B"  wood-base  and  cover  hand  machine.. 

10.82 

15.33 

14.20 

20.33 

'  V  "  drop-head  vibratory  treadle  machine  

21.60 

26.64 

'R"  drop-head  rotatory  treadle  machine  

25.60 

30.36 

Size  of  industry. — Prior  to  the  war  there  were  approximately 
two  and  one-half  times  as  many  sewing-machine  manufacturers  in 
Germany  as  in  the  United  States,  the  latter  numbering  eight.  It 
is  estimated  on  good  authority  that  the  German  output  was  150 
per  cent  greater  than  that  of  American  manufacturers.  The  capital 
investment  of  the  association  members  exceeds  $18,000,000,  and  the 
number  of  workmen  employed  in  normal  times  is  approximately 
8,300. 

Rates  suggested. — The  prewar  tariff  of  30  per  cent  ad  valorem  is 
not,  in  the  opinion  of  the  witness,  prohibitive  of  German  importa- 
tion; it  will,  however,  be  of  some  aid  to  American  manufacturers, 
who  are  of  the  firm  conviction  that  a  minimum  tariff  at  this  rate 
should  be  adopted  for  the  partial  protection  of  the  industry. 

Remarks. — The  brief  suggests  that,  as  furnishing  both  export  and 
import  information,  there  should  be  two  classifications  relating  to 
sewing  machines.  Family  sewing  machines  should  be  distinguished 
from  factory  or  power  machines  in  order  that  those  interested  may 
always  be  reliably  informed  as  to  exports  and  imports  of  both  types. 
The  iSinger  Manufacturing  Co.  controls  approximately  95  per  cent  of 
the  power  sewing-machine  business  and  over  60  per  cent  of  the  family 
sewing-machine  business. 

The  Canadian  Government  has  placed  an  import  duty  of  30  per 
cent  on  sewing  machines.  In  addition,  there  is  collected  a  duty  on 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  537 

exchange,  now  12  per  cent,  which,  together  with  the  basic  duty  of 
30  per  cent  and  the  sales  tax,  totals  approximately  37  per  cent.  The 
Australian  Government  has  recently  passed  a  law  imposing  a  virtu- 
ally prohibitive  duty  of  approximately  $15  per  machine,  effective 
January  1,  1922. 

Witness :  Durbrow  &  Hearne,  importers  of  machinery  and  sup- 
plies, principally  from  Germany.  (Brief;  no  appearance  at  hear- 
ings.) 

Comparability. — The  firm  is  a  member  of  the  National  Council 
of  American  Importers  and  Traders.  The  question  of  exchange 
does  not  enter  very  much  into  the  firm's  transactions,  purchases  be- 
ing mostly  in  American  dollars.  In  all  cases  the  prices  herein  stated 
are  the  equivalent  values  in  American  dollars,  taken  at  the  present 
very  low  rate  of  exchange,  whenever  purchases  are  in  marks  instead 
of  dollars.  Naturally,  if  exchange  advances,  these  cost  figures  would 
be  higher,  and  it  has  been  the  experience  of  the  firm  for  the  past 
two  years  that  German  manufacturers,  even  when  selling  in  dollars, 
generally  raise  their  dollar  prices  as  the  exchange  value  of  the  mark 
advances.  In  addition  to  the  actual  cost  of  the  goods  in  Germany, 
there  are  certain  export  taxes.  As  these  are  variable,  amounting  at 
the  present  time  to  only  1  or  2  per  cent,  no  account  is  taken  of  them. 
Freight  charges  will  average  about  double  what  they  were  in  pre- 
war times  and  all  other  expenses  are  about  double — insurance  even 
more  than  double.  No  comparison  whatever  is  made  as  to  the  effect 
of  the  proposed  duties,  but  if  the  rate  and  the  actual  cost  in  Ger- 
many are  increased  the  ultimate  cost  of  the  goods  landed  in  Amer- 
ica will  be  very  much  greater  than  in  prewar  times.  In  addition, 
the  firm  wishes  to  state  that  within  their  experience  German  manu- 
facturers have  been  very  slow  in  deliveries  in  the  last  two  years. 
The  firm  has  been  unable  to  find  any  evidence  of  ability  to  dump 
goods  on  the  American  market. 

Summarizing  the  cited  statement  of  comparative  costs  of  goods 
imported  by  the  firm  from  Germany  at  the  present  time  and  in  pre- 
war times,  it  appears  that  there  has  been  an  increase  in  cost  vary- 
ing from  30  to  107  per  cent  in  sewing  machines;  in  parts,  31  to  50 
per  cent ;  and  in  needles,  25  to  137  per  cent. 

PARAGRAPH  1542. — CERir>r. 

WITNESS,  AM)  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Alexander  Harris,  representing  the  New  Process  Metals  Corporation, 
Newark,  N.  J. 

Hearings :  Pages  4420-4426. 

Size  of  industry. — Cerium,  a  combination  of  other  metals,  includ- 
ing lanthanum  and  didymium.  is  used  for  only  a  few  industrial  ap- 
plications, pocket  lighters  being  the  best  known.  Its  most  important 
use,  however,  is  for  mining  lamps,  giving  off  light  without  danger 
of  igniting  dangerous  gases. 

Comparability. — Apart  from  the  question  whether  the  present 
American  price  of  $7  a  pound  for  the  commoner  grades,  rising  to  $18 
for  special  grades,  is  sufficient,  the  point  made  by  the  witness  is  that 
the  industry  has  got  to  be  kept  alive.  In  Europe  the  consumption 


538  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

is  at  least  25,000  pounds  a  month,  the  people  being  used  to  lighters. 
Consequently,  the  cost  of  production  is  very  much  lower  than  here. 

Rates  suggested. — A  specific  duty  of  $2.50  a  pound  plus  the  ad 
valorem  duty  of  30  per  cent  now  applying  to  the  alloys  of  cerium. 

Remarks. — Given  adequate  protection,  the  witness  believes  that  a 
large  business  can  be  developed  along  such  lines  as  the  utilization  of 
products  now  going  to  waste  as  the  basis  of  this  material. 

PARAGRAPH  1544. — CHROME  ORE. 

WITNESS. 

FAVORING  HIGHER  DUTIES  : 

Hon.  Dan  A.  Sutherland,  Delegate  in  Congress  from  Alaska. 

Hearings :  Pages  4426-4430. 

Size  of  industry. — Representing  chrome-ore  producers  in  the  Ter- 
ritory of  Alaska,  the  witness  alluded  to  the  chief  use  of  this  ore  as  for 
alloying  steel,  its  next  greatest  use  being  in  chemical  manufacturing, 
as  in  tanning  leather.  It  is  imported  from  Xew  Caledonia,  Rhodesia, 
Cuba,  and  several  other  countries.  The  annual  prewar  production  in 
the  United  States  was  591  tons — a  negligible  quantity.  Under  stress 
of  war  83,430  tons  were  produced  annually  for  three  years,  now 
fallen  to  3,900  tons.  Foreign  importations  are  now  60  per  cent  of 
what  they  were  during  the  war  period,  while  domestic  production 
is  only  4.5  per  cent  of  the  amount  produced  during  that  period. 

Camp  cur abHity. — American  ore  is  produced  by  American  labor, 
while  the  foreign  is  produced  by  convict  and  Kaffir  labor  in  Xew 
Caledonia  and  South  Africa,  respectively. 

Rates  suggested. — A  specific  duty  of  60  cents  per  unit,  equivalent 
to  $20  a  ton  of  50  per  cent  oxide.  *  The  quantity  of  chrome  used  in 
manufacturing  is  so  small  that  these  rates  could  not  affect  the  selling 
price  of  the  manufactured  product. 

PARAGRAPH  1546. — CRESOL. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  T.  E.  Caruso,  representing  Lehn  &  Fink  (Inc.),  New  York  City. 

Hearings :  Pages  997-998  of  Schedule  1. 

Rates  suggested. — Specific  provision  for  cresol  or  cresylic  acid  on 
the  free  list. 

PARAGRAPH  1548. — GTJARAXA    (BRAZILIAN  COCOA). 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  A.  Law  Voge,  chemical  engineer.  New  York  City. 

Hearings :  Pages  4431-4433. 

Size  of  industry. — Guarana,  consumed  as  a  morning  drink,  the 
same  as  coffee  or  cocoa,  by  a  large^section  of  the  Brazilian  people, 
has  never  been  imported  into  the  TTnited  States  until  so  obtained  by 
the  witness  for  experimental  purposes.  In  the  unground  form,  it  is 
now  subject  to  a  very  severe  export  duty  from  Brazil.  The  witness 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  539 

spent  several  months  in  South  America  investigating  agricultural 
conditions,  markets,  etc.,  and  believes  the  present  almost  negligible 
production  of  guarana  to  be  capable  of  rapid  increase  by  proper 
development. 

Rates  suggested. — Free  list,  with  the  object  of  introducing  another 
substitute  for  coffee  or  cocoa. 

PARAGRAPH  1549. — COFFEE. 

WITNESS. 

FAVORING  HIGHER  DUTIES  : 

Mr.    Felix    Cordova    Davids,    United    States    Commissioner,    Porto    Rico. 
(Brief;  no  appearance  at  bearings.) 

Size  of  industry. — In  Porto  Rico,  300,000  persons  are  engaged  in 
the  coffee  industry  on  more  than  20,000  farms,  ranging  from  1  to 
2,000  acres  in  size  and  having  a  total  area  of  150,000  acres. 

Rates  suggested. — Five  cents  per  pound. 

Remarks. — Coffee  land  in  Porto  Rico  is  unsuitable  for  other  crops. 
Lower  working  standards  in  Brazil  enable  that  country  to  produce 
at  less  cost  than  in  Porto  Rico.  The  brief  maintains  that  the  pro- 
posed duty  of  5  cents  per  pound  would  not  be  felt  by  the  consumer 
and  would  bring  $70,000,000  to  the  United  States  Treasury  annually. 

PARAGRAPH  1557. — LONG-STAPLE  COTTON. 

WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Dwight  B.  Heard,  president  Pima  Cotton  Growers'  Association,  Phoenix, 

Ariz. 
Hon.  Thomas  E.  Campbell,  Governor  of  Arizona. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  R.  M.  Macintosh,  representing  importers  of  Egyptian  cotton. 
John  H.  Meyer  &  Co.,  New  York  City.     (Brief.) 

Hearings :    Pages  4433-4448. 

Witness :  Mr.  Dwight  B.  Heard. 

Size  of  industry. — The  long-staple  cotton  on  which  protection  is 
sought  is  primarily  the  American-Egyptian  or  Pima  cotton,  grown 
in  the  irrigated  valleys  of  the  Southwest.  These  valleys  produced, 
in  1920,  103,000  bales  of  this  cotton,  while  imports  of  Sakel  cotton 
from  Alexandria,  Egypt,  in  the  year  closing  August  1, 1920,  amounted 
to  340,000  bales.  Average  imports  for  the  four  previous  years  were 
120,000  bales.  The  bulk  of  the  Pima  cotton,  exceeding  1£  inches 
in  staple  length,  comes  in  direct  competition  with  the  Sakel  product. 
The  question  is  asked :  "  If  this  industry,  developed  with  the  assist- 
ance of  the  Department  of  Agriculture,  is  allowed  to  perish  through 
lack  of  the  reasonable  tariff  protection  asked  for,  will  not  our  Ameri- 
can manufacturers,  needing  this  class  of  cotton,  eventually  pay  such 
a  price  for  it  as  foreign  nations  controlling  production  of  it  may 
dictate  ?  "  The  small  importation  during  the  years  1917  and  1918 
was  due  to  submarine  activity;  t/he  use  of " American-Egyptian 
(Pima)  cotton  was  largely  increased  by  American  manufacturers 
during  the  war.  For  use  in  airplane  cloth,  made  of  No.  80  yarn,  it 
was  found  nearly  as  satisfactory  as  the  best  of  Irish  linen. 


540  DIGEST  OF  TARIFF   HEARINGS,  H.  R.   7456. 

Comparability. — Egypt  produces  annually  about  700,000  bales  of 
Sakel  cotton,  sold  to  European  and  American  manufacturers  and 
principally  woven  into  tire  fabrics.  So  far  as  the  witness  had  been 
able  to  ascertain,  the  basic  wage  for  labor  in  the  Southwest  is  at 
least  five  times  that  paid  in  Egypt.  In  the  American  production 
cost  60  per  cent  is  for  labor.  With  Egypt  able  to  lay  this  cotton 
down  in  New  England  for  20f  cents,  it  is  evident  that  the  American 
grower  will  make  but  a  fair  profit  with  a  duty  of  20  cents  per  pound 
added  to  the  present  price  of  Sakel  cotton. 

The  witness  referred  to  the  efforts  being  made  by  the  English 
Cotton  Growing  Association  to  develop  new  fields  of  production. 
In  1920,  80,400  bales  of  cotton,  including  20,000  long-staple,  were 
thus  produced  in  Nigeria,  Uganda,  the  Sudan,  and  Mesopotamia ; 
an  ultimate  production  of  nearly  3,000,000  bales  is  looked  for. 

Hates  suggested*. — A  specific  duty  of  20  cents  per  pound. 


A  brief,  dated  December  13,  1921,  is  reproduced  as  a  printed 
pamphlet,  signed  by  the  foregoing  witness  as  president  of  the  Pima 
Cotton  Growers'  Association.  He  refers  to  his  close  association, 
since  1906,  with  "  the  group  of  highly  trained  scientific  men  in  the 
Department  of  Agriculture,  who  have  so  greatly  assisted  in  the 
development  of  the  agricultural  industry." 

The  witness  has  grown  Pima  cotton  for  the  last  six  years  and 
desires  protection  for  this  American-Egyptian  long  staple  product. 
Comparisons  are  drawn  between  the  wages  of  24  cents  to  36  cents 
per  day  paid  to  the  Egyptian  fellaheen  and  those  of  $2  to  $2.50 
per  day  paid  agricultural  labor  in  the  Southwestern  States.  Similar 
arguments  apply  to  transportation  costs. 

A  detailed  discussion  of  the  various  uses  to  which  this  special 
fiber  can  be  applied  is  followed  by  testimony  to  the  effect  that  this 
country  is  able  to  produce  all  the  long-staple  cotton  required — a 
condition  demanded  by  American  manufacturers.  The  danger  of 
allowing  this  industry  to  pass  into  foreign  hands  is  pointed  out. 

An  accompanying  e'xhibit  summarizes  the  results  of  tests  made 
by  the  United  States  Bureau  of  Markets,  the  Bureau  of  Standards, 
and  commercial  concerns. 

Hearings :  Pages  4448-^450. 

Witness:  Hon.  Thomas  G.  Campbell,  Governor  of  Arizona. 

Supplementing  the  testimony  of  Mr.  Dwight  B.  Heard,  Gov. 
Campbell  dwelt  upon  the  necessity  of  developing  industries  in  the 
Southwest  which  will  bear  exporting  beyond  the  boundaries  of  the 
State.  Much  is  hoped  for  from  the  development  of  this  Pima  cot- 
ton, bringing  into  fruition  a  part  of  the  hundreds  of  thousands  of 
arid  and  semiarid  acres  in  that  country  by  irrigation. 

Competition  with  Egyptian  labor  is  impossible,  but  it  is  possible 
to  replace  a  once  great  universal  industry  with  an  industry  de- 
pendent upon  reclamation  projects.  The  labor  question  is  compli- 
cated by  the  competition  with  industries  paying  wages  of  40  to  50 
cents  an  hour  for  an  8  hour  day;  Mexican  labor  does,  as  a  fact, 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  541 

underbid  American  labor.     Besides,  American  labor  does  not  care 
to  work  in  cotton  and  beet  fields. 

Witness :  John  H.  Myer  &  Co.  (Brief ;  no  appearance  at  hearings.) 
Rates  suggested. — As  manufacturers  in  the  State  of  Pennsylvania, 
the  firm  strenuously  opposes  the  placing  of  any  duty  upon  long-staple 
cotton,  of  which  only  a  limited  amount  is  grown  in  the  United  States. 
Most  of  this  cotton  is  used  in  manufacturing  automobile  tires,  and 
any  duty  imposed  would  affect  the  eight  to  nine  million  owners  of 
automobiles  in  America.  On  the  other  hand,  such  a  duty  would  be 
for  the  benefit  of  comparatively  few  people  in  this  country. 

Hearings :  Pages  4450-4452. 

Witness:  Mr.  R.  M.  Macintosh,  representing  importers  of  Egyp- 
tian cotton. 

The  witness's  statement  was  directed  to  rebut  the  testimony  in 
favor  of  a  tariff  duty  on  long-staple  cotton.  It  is  denied  that  the  so- 
called  American-Egyptian  cotton  is  a  substitute  for  the  cotton  grown 
in  Egypt,  manufacturers  having  been  unable  to  obtain  equal  results 
from  it.  It  is  argued  that  the  result  of  the  proposed  duty  would  be 
either  («)  the  production  of  a  lower  grade  of  goods  made  necessary 
from  the  use  of  shorter-staple  cotton  or  (&)  a  vastly  increased  price 
to  the  public  on  sewing  thread,  etc.,  for  whose  production  the  im- 
ported Egyptian  cotton  is  essential. 

A  detailed  estimate  is  made  of  the  potential  effect  of  such  a  tariff 
on  yarn  prices,  a  total  annual  excess  of  cost  to  American  consumers 
of  cotton  goods,  amounting  to  $65.000,000,  being  indicated  as  due  to 
the  tariff  itself  and  the  compensating  tariff  which  it  would  entail. 
Moreover,  the  exclusion  of  Egyptian  cotton  from  this  country  by  the 
proposed  tariff  would  depress  the  market  in  Egypt  and  enable  the 
European  spinner  to  obtain  his  supply  of  Egyptian  cotton  at  lower 
prices.  This  could  not  fail  to  depress  the  price  of  American  staple 
cotton. 

PARAGRAPH  1559. — METALLIC  ARSENIC. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  William  Loeb,  jr.,  representing  the  American  Smelting  &  Refining  Co. 

Hearings :  Page  4452. 

Costs  and  selling  prices. — Prior  to  the  war,  practically  no  metallic 
arsenic  was  manufactured  in  this  country ;  it  was  imported  from  Ger- 
many and  other  European  countries.  During  the  war,  at  the  request 
of  the  United  States  Government,  metallic  arsenic  was  produced. 
The  cost  of  production  was  high,  varying  from  40  to  60  cents  per 
pound. 

Comparability. — Metallic  arsenic  is  being  offered  from  Germany 
to-day  at  28  cents  per  pound.  The  witness  is  credibly  informed  that 
the  present  cost  of  production  in  Germany,  with  low  exchange  and 
labor  rates,  is  approximately  5  cents  per  pound. 

Metallic  arsenic  is  used  in  the  hardening  of  metals  and,  to  a  certain 
extent,  in  insecticides. 

Rates  suggested. — A  duty  of  10  cents  per  pound. 


542  DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPH  1573. — RAW  FURS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Messrs.  Samuel  Ullman  and  Edward  Fillmore,  representing  the  Board  of 
Trade  of  the  Fur  Industry  of  the  City  of  New  York  and  other  associa- 
tions. (Brief.) 

Hearings:  Pages  4131-4135  of  Schedule  14. 

Size  of  industry. — Prior  to  the  war,  the  international  trade  in 
raw  furs  .was  almost  wholly  in  the  hands  of  the  British  and  Ger- 
mans. America  did  little  direct  business  with  the  countries  of 
origin  of  the  raw  furs  used  here.  A  considerable  part  of  the 
American  catch  of  raw  furs  was  shipped  to  London  to  be  distrib- 
uted. The  raw  fur  industry  of  the  United  States  has  been  built  up 
since  the  war  and  has  succeeded  in  wresting  the  monopoly  from 
Germany,  England,  and  Canada.  A  duty  on  raw  furs  would  drive 
the  business  back  to  those  countries. 

The  first  American  fur  auction  was  held  at  St.  Louis  in  1915, 
and  auctions  were  commenced  at  New  York  in  1916.  Public  auc- 
tions of  raw  furs  are  now  conducted  in  the  spring,  fall,  and  winter 
in  both  New  York  and  St.  Louis.  In  quoting  from  a  report  of 
the  Alien  Property  Custodian,  the  brief  states  that  the  first  St. 
Louis  sale  in  1915  amounted  to  considerably  less  than  $1,000,000  and 
that  the  January  (1919?)  sale  was  said  to  have  been  in  excess 
of  $9,000,000.  The  first  New  York  sale  in  1916  was  about  $750,000 
and  the  sale  in  Feburary,  1919,  was  almost  $6,000,000. 

Rates  suggested. — Raw  furs  and  skins  to  be  retained  on  the  free 
list. 

Remarks. — The  effect  of  a  tariff  on  raw  furs  would  be  to  remove 
America  from  international  competition  by  destroying  the  prospects 
of  retaining  the  present  position  as  a  center  of  distribution  for 
both  foreign  and  domestic  furs.  It  would  check  the  development 
of  the  fur  dressing  and  dyeing  industry  in  the  United  States, 
both  with  respect  to  the  foreign  demand  for  American  dressed 
furs  and  for  domestic  consumption.  And  such  tariff  would  in- 
evitably result  in  an  increase  of  cost  to  the  buyer  of  manufac- 
tured furs  and  work  a  grave  injury  to  the  manufacturing  branch  of 
the  industry.  Reference  is  made  to  a  brief  filed  with  the  Com- 
mittee on  Ways  and  Means. 

PARAGRAPH  1575. — GRASSES  AND  FIBERS. 

WITNESS.  AND  INTERESTS  BEPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

•  Mr.  T.  E.  Barbour,  representing  Allentown  Spinning  Co.,  American  Manu- 
facturing Co.,  Chelsea  Fiber  Mills,  Columbia  Rope  Co,,  Dolphin  Jute 
Mills.  Hanover  Cordage  Co..  the  Hooven  &  Allison  Co.,  Lamond  &  Robert- 
son Co.,  the  Schlichter  Jute  Cordage  Co.,  the  Sutherland  &  Edwards  Co., 
the  Wilmington  Mills. 

Hearings:  Pages  3444-3452  of  Schedule  10.     (Brief.) 
Rates  suggested. — This  paragraph  should  be  retained  exactly  as 
it  is. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  543 

Remarks.  —  The  consumption  of  jute  by  domestic  manufacturers 
amounts  to  220,000,000  pounds  annually.  (For  a  fuller  discus- 
sion of  this  brief,  see  paragraph  1003,  relating  to  jute  yarns  and 
cordage.) 

PARAGRAPH  15T5.  —  JUTE  AND  JUTE  BUTTS. 

WITNESS,  ANT)  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  J.  F.  Simpson,  representing  Maginnis  Cotton  Mills,  New  Orleans,  La. 

Hearings  :  Pages  3478-3480  of  Schedule  10. 

Rates  suggested.  —  With  a  duty  of  40  per  cent  on  raw  jute,  and  of 
1  cent  per  pound  plus  25  per  cent  ad  valorem  on  burlap,  hundreds 
of  thousands  of  bales  of  low-grade  cottons  could  be  profitably  con- 
verted into  bags,  ropes  and  twines  by  the  cotton  mills  of  this  country. 

Remarks.  —  Once  the  cotton  bag  made  from  low-grade  cotton  is 
established,  its  use  will  rapidly  spread  for  the  shipment  of  sugar. 
rice,  beans,  salt,  cement,  flour,  and  many  other  commodities.  Nothing 
will  be  more  helpful  towards  the  stabilizing  of  low-grade  cotton  to 
a  reasonable  value  than  a  duty  on  raw  jute  and  burlap.  Hitherto,  a 
duty  on  raw  jute  has  not  been  advocated,  because  50  per  cent  of  the 
imports  were  used  in  the  domestic  manufacture  of  bagging  for  cover- 
ing raw  cotton.  Notwithstanding  free  jute,  American  manufacturers 
of  bagging  for  covering  cotton  have  recently  established  mills  in 
India  because  American  mills  could  not  compete  with  Indian  in  cost 
of  production.  The  same  condition  applies  to  a  comparison  of  wages 
paid  by  American  cotton  mills  and  by  Indian  jute  mills. 

(For  a  more  complete  abstract  of  this  brief  see  paragraphs  1008 
and  1017  of  Schedule  10,  Jute  cloths  and  jute  bags.) 

PARAGRAPH  1577.  —  SHELLAC  AND  COPAL  GUMS. 


Mr.  Marion  Dorian,  representing  the  Columbia  Graphophone  Co.,  Bridgeport, 
Conn.     (Brief.) 

Hearings  :  Pages  4453-4454. 

Rates  suggested.  —  Free  list. 

Remarks.  —  Shellac  and  copal  gums,  essential  raw  materials,  are 
not  produced  at  all  in  this  country.  They  do  not  compete  in  any 
degree  with  American  products  of  similar  or  kindred  character,  and 
are  indispensable  to  a  variety  of  important  American  manufactured 
products.  They  must  undergo  refining  processes  in  this  country  be- 
fore being  fitted  for  use  as  raw  materials  in  manufacturing.  No 
American  industry  would  be  aided  by  a  duty  on  these  materials  and 
no  American  industry  will  be  injured  by  admitting  them  free. 

PARAGRAPH  1578.  —  MINING  AND  BLASTING  EXPLOSIVES. 

WITNESS. 

FAVORING  HIGHER  DUTIES  : 

The   Trojan    Powder    Co.,    New    York    City.      (Brief;    no    appearance    at 
hearings.) 

Rates  suggested.  —  The  minimum  duty  which  should  be  levied  on 
blasting  explosives  should  be  the  duty  which  would  be  applicable 


544  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 

to  the  individual  ingredients  if  separately  imported.  This  would, 
however,  be  a  somewhat  complicated  method  of  determining  the 
duty  and,  as  an  alternative,  the  rates  provided  in  the  act  of  1909 
or,  preferably,  a  slight  modification  thereof  as  shown  below,  should 
be  introduced  into  the  proposed  tariff  bill. 

The  act  of  1909,  paragraph  435,  provided  as  follows : 

Gunpowder,  and  all  explosive  substances  used  for  mining,  blasting,  artillery, 
or  sporting  purposes,  when  valued  at  20  cents  or  less  per  pound,  2  cents  per 
pound ;  valued  above  20  cents  per  pound,  4  cents  per  pound. 

These  rates  of  duty  on  mining  and  blasting  explosives  would  be 
reasonably  satisfactory,  although  it  would  be  considerably  better 
from  every  standpoint  if  the  duty  were  fixed  at  2  cents  per  pound 
for  explosives  valued  in  this  country  at  less  than  10  cents  per  pound ; 
3  cents  per  pound  for  explosives  valued  in  this  country  at  10  cents 
or  more  per  pound,  but  less  than  20  cents  per  pound;  and  4  cents 
per  pound  for  explosives  valued  in  this  country  at  20  cents  or  more 
per  pound. 

Remarks. — Under  the  provisions  of  H.  R.  7456,  apparently  by  ail 
oversight,  blasting  powder  is  admitted  free  of  duty,  whereas  the 
ingredients,  if  imported  separately,  carry  very  substantial  duties. 
Since  these  ingredients  can,  generally  speaking,  be  produced  much 
more  cheaply  abroad  than  in  this  country,  it  appears  that  the  tariff 
bill  in  its  present  form  actually  favors  the  manufacture  of  completed 
blasting  explosives  abroad  and  at  the  same  time  defeats  its  own 
purpose  in  levying  duties  on  the  ingredients,  seeing  that  the  com- 
pleted explosives  containing  these  ingredients  could  be  imported 
duty  free,  while  the  same  quantities  of  ingredients,  imported  sep- 
arately, would  be  dutiable. 

Attention  is  directed  to  the  unreasonableness  of  the  situation  which 
would  exist,  for  instance,  if  the  Canadian  explosive  manufacturers, 
located  close  to*  the  American  border,  could  secure  duty-free, 
cheaply  made  European  ammonium  nitrate  and  mix  it  into  completed 
•explosives  for  sale  in  competition  with  domestic  explosives — the 
latter  being  made  from  ammonium  nitrate  upon  which  a  heavy  duty 
would  have  been  paid.  The  effect  of  such  a  situation  would  be  to 
decrease  the  revenues  of  the  Government,  hurt  the  business  of  Ameri- 
can manufacturers,  and  benefit  no  one,  since  prices  to  users  of  ex- 
plosives would  undoubtedly  be  maintained  on  the  basis  of  dutiable 
ammonium  nitrate  even  though  a  considerable  proportion  of  the  trade 
might  be  supplied  with  imported  explosives  made  from  the  duty- 
free  chemical. 

Ammonium  nitrate  is  not  used  in  amr  considerable  quantity  for 
any  other  purpose  than  the  manufacture  of  explosives.  Thus,  the 
entire  object  of  the  duty  on  ammonium  nitrate  would  be  defeated  in 
direct  proportion  to  the  amount  which  would  be  brought  in,  duty 
free,  in  the  form  of  completed  ammonium  nitrate  explosives. 

Neither  the  act  of  1909  nor  the  act  of  1913  permitted  the  existence 
of  such  a  contradictory  and  unfair  condition.  It  is  true  that  blasting 
explosives  were  placed  on  the  free  list  in  the  act  of  1913,  but  this  act 
also  placed  ammonium  nitrate  on  the  free  list.  The  act  of  1909  car- 
ried a  duty  of  25  per  cent  on  ammonium  nitrate,  but  this  was 
equalized  by  a  duty  on  the  completed  explosives. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  545 

While  for  purposes  of  illustration  the  case  of  ammonium  nitrate  is 
cited  above,  substantially  the  same  comments  apply  to  T.  N.  T., 
ammonium  perchlorate  and  glycerin ;  that  is  to  say,  to  have  these 
materials  carry  heavy  duties  and  at  the  same  time  have  on  the  free 
list  explosives  chiefly  composed  of  mixtures  of  these  ingredients, 
would  encourage  the  evasion  of  duties  on  the  materials  themselves. 
This  would  result  from  the  compounding  of  them  into  completed  ex- 
plosives in  Canada.  Mexico,  or  other  foreign  countries  and  their  im- 
portation into  this  country  in  a  nondurable  form. 

On  the  surface,  it  might  seem  that  this  apparent  inequity  might  be 
corrected  by  the  elimination  of  the  duty  on  the  ingredients  concerned, 
but  many  complications  would  result,  inasmuch  as  the  ingredients 
are  in  turn  manufactured  from  dutiable  materials.  Furthermore, 
such  action  would  be  totally  out  of  alignment  with  the  policy  appar- 
ently followed  in  the  bill,  since  it  would  involve  placing  on  the  free 
list  quite  a  number  of  products  which  can  be  made  much  more 
cheaply  abroad  than  in  this  country. 

PARAGRAPH  1579. — CURLED  HAIR. 

WITNESS.  AND  INTEREST  REPRESENTED. 

FAVORING  MODIFICATIONS  : 

Mr.  James  H.  Preston,  representing  the  William  Wilkens  Co.,  Baltimore  Md. 

Hearings :  Page  4457. 

Rates  suggested. — The  words  "cleaned  and  drawn"  to  be  omitted, 
because  cleaned  and  drawn  hair  is  wholly  or  in  part  manufactured. 

PARAGRAPH  1580. — OSSEIN. 

WITNESS. 

FAVORING  HIGHER  DUTIES  : 

The  Wilckes-Martin-Wilckes  Co.,  Camden,  N.  J.      (Brief;   no  appearance 
at  hearings.) 

Costs  and  selling  prices. — European  labor  in  ossein  plants  receives 
50  to  55  cents  per  day.  while  domestic  labor  receives  from  $3.75  to 
$4.25  per  day  for  the  same  number  of  days.  Muriatic  acid,  the  raw 
material  for"  ossein,  and  of  which  1.200  pounds  is  required  to  treat 
1,000  pounds  of  bones,  costs  less  than  $4  per  ton  in  Europe  and,  for 
20°  acid  in  this  country.  $20  per  ton.  Ossein  is  now  being  imported 
into  the  United  States' and  sold  at  10  cents  per  pound  less  than  do- 
mestic manufacturing  costs. 

Rates  suggested. — Ossein  to  be  specifically  mentioned  in  paragraph 
39,  covering  glue  and  gelatin,  at  25  per  cent  ad  valor^n. 

Remarks. — Ossein.  not  specifically  mentioned  in  H.  K.  7456,  is  now 
classed  as  free  under  paragraph  1580,  as  hide  cuttings  or  all  other 
glue  stock.  Ossein  is  neither  hide  cuttings  nor  glue  stock,  but  a 
product  of  selected  bones,  a  half-finished  gelatin.  Its  manufacture 
was  undertaken  when  the  war  cut  off  imports,  and  domestic  pro- 
ducers absolutely  can  not  continue  business  unless  afforded  protection 
against  European  imports. 


546  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

PARAGRAPH  1582. — HIDES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Frank  B.  McClain,  representing  the  National  Live  Stock  Exchange. 
Hon.  Holm  O.  Bursurn,  United  States  Senator  from  New  Mexico. 

FAVORING  PEOPOSED  DUTIES  : 

Mr.    Gray    Silver,    representing    the   American    Farm    Bureau    Federation, 
(Brief.) 

Hearings :  Pages  4459-4463. 

Witness :    Mr.  Frank  B.  McClain. 

Costs  and  selling  prices, — Hides  are  now  selling  at  less  than  prewar 
prices.  Heavy  hides  selling  at  19  to  20  cents  per  pound  in  1912-1914 
and  at  27  cents  in  1914  sell  to-day  for  14  cents.  A  comparative  table 
of  prices  for  the  last  ten  years,  in  standard  classifications,  is  given 
on  page  4461. 

Rates  suggested. — Hides  should  have  an  ad  valorem  duty  of  20  to 
25  per  cent. 

Hearings:  Pages  4463~4468.  (Brief  of  Mr.  D.  B.  Zimmerman, 
pages  4464-4468.) 

Witness :  Hon.  Holm  O.  Bursum,  United  States  Senator  from 
New  Mexico. 

Costs  and  selling  prices. — Prices  of  hides  are  so  low  that  it  often 
does  not  pay  local  butchers  to  save  the  hide.  "  Recently  (September, 
1921)  a  local  Kansas  butcher  shipped  80  cattle  hides  to  a  hide  com- 
pany and  his  returns,  after  transportation  charges  were  paid,  were 
just  $2*2.50,  or  an  average  of  28  cents  a  hide." 

Size  of  industry. — Not  only  producers  of  beef  cattle  but  also  dairy- 
men are  interested  in  hide  prices,  since  the  hide  is  the  principal  by- 
product of  the  discarded  dairy  cows. 

Rates  requested. — On  hides,  15  cents  per  pound  or  30  per  cent  ad 
valorem. 

Remarks.— The  lack  of  credit  in  the  cattle  business  is  causing 
wholesale  liquidation;  this  will  continue  until  the  breeding  herds 
of  the  west  have  been  so  seriously  decimated  as  to  necessitate  a 
gigantic  restocking — a  task  requiring  many  years. 

'  There  is  a  plethora  of  hides  at  present ;  stocks  consist  of  5,500,000 
sole  hides,  4,500,000  upper  leather  hides,  and  the  equivalent  of  4,000,- 
0,00  calf  and  kip  skins  in  manufactured  leather. 

Free  hides  have  not  meant  cheaper  shoes.  Shoe  costs  increased 
even  before  the  war,  owing  to  royalties  on  machinery.  Since  the 
war,  shoe  prices  have  been  kept  at  abnormal  levels  in  spite  of  the 
50  to  60  per  cent  drop  in  hide  prices. 

The  effect  or  the  proposed  duty  on  hides  on  the  price  of  shoes 
would  be  negligible.  The  cost  of  shoes  is  b>sed  on  profits  to  manu- 
facturers, royalties  on  machinery,  and  expenses  incidental  to  distri- 
bution. The  advantage  in  free  hides  accrues  to  the  foreign  producer 
and  manufacturer.  Free  trade  in  hides  has  not  resulted  in  giving 
the  American  tanner  and  manufacturer  a  large  place  in  the  world's 
markets. 

Unlike  the  case  of  wood  pulp  and  lumber,  the  use  of  foreign  hides 
is  not  a  saving  but  a  loss  of  the  country's  resources,  for  if  country 
hides  are  not  used  as  produced  they  become  a  total  loss. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  547 

Since  hides  are  the  principal  cattle  by-product,  if  the  price  is  so 
low  that  the  hide  does  not  bear  its  proportionate  cost,  the  price  of 
beef  must  be  so  much  higher  to  the  consumer. 

Hearings:  Pages  4491-4493. 

Witness :  Mr.  Gray  Silver,  representing  the  American  Farm  Bu- 
reau Federation.  (Brief.) 

The  brief  emphasizes  the  fact  that  cattle  hides  are  a  by-product; 
animals  are  not  raised  for  their  hides  alone,  and  the  variation  in 
hide  prices  has  little  influence  on  the  rate  of  cattle  production.  The 
price  on  sales  is  largely  determined  by  the  value  of  the  meat  on  the 
animals,  the  hides  representing  only  6^  per  cent  of  the  weight. 

Cattle  production  is  declining  and  the  use  of  substitutes  for  heavy 
leather  is  increasing — a  factor  which  will  tend  to  place  a  limit  on 
the  price  advance  of  hides  and  leather.  Consequently,  the  price  of 
hides  may  riot  advance  greatly  as  a  result  of  a  duty  on  them. 

Rates  suggested. — The  brief  sums  up  a  comprehensive  discussion 
of  possible  results  with  the  statement  that  hides,  leather,  and  leather 
products  should  remain  on  the  free  list. 

PARAGRAPH  1598. — CASEIN. 

WITNESS,    AND    INTEREST    REPRESENTED. 

Mr.  Charles  W.  Holman,  representing  the  National  Milk  Producers'  Federation. 
(Supplemental  brief.) 

Hearings :  Pages  2800-2806  of  Schedule  7. 

Costs  and  selling  prices. — In  1920  the  cost  of  manufacturing  casein 
in  California  averaged  15.47  cents  per  pound,  and  for  the  first  eight 
months  in  1921,  16.2  cents  per  pound.  California  casein  of  high 
quality  is  being  sold  for  9  cents  per  pound  in  San  Francisco  at  the 
present  time. 

Rates  suggested. — A  duty  of  4^  cents  per  pound. 

Remarks—  Casein  production" is  a  comparatively  new  American 
industry.  Protection  is  needed  from  imports  of  casein  from  Argen- 
tina, which  have  been  sold  in  New  York  as  low  as  6^  cents  per  pound. 

NOTE. — jror  the  witness's  oral  testimony,  submitting  preliminary  report  of  the 
United  States  Milk  Producers'  Dairy  Tariff  Committee,  see  p.  2745  of  Sched- 
ule 7. 

PARAGRAPH  1600. — LEATHER. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  E.  A.  Brand,  representing  the  Tanners'  Council  of  the  United  States 

of  America,  New  York  City. 
Mr.  Fred  C.  Fabel,  representing  the  American  Oak  Leather  Co.  and  certain 

other  sole-leather  tanners,  Cincinnati,  Ohio. 
Mr.    Frederick    Carlisle,    representing    harness-leather    tanners,    Saginaw, 

Mich.     (Brief.) 

Mr.  Laird  H.  Simons,  representing  kid-leather  tanners,  Philadelphia,  Pa. 
Mr.  Frederick  C.  Stresau,  representing  side  upper-leather  tanners. 
Mr.  Walter  T.  Creese,  representing  Creese  &  Cook  Co.  and  other  calf  and 

veal  leather  manufacturers,  Danvers,  Mass. 
Mr.  Maxwell  J.  Lowry,  representing  patent-leather  tanners,  Boston,  Mass. 


548  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

REQUESTING  RECLASSIFICATION  : 

Mr.  George  B.  Bernheim,  representing  R.  Newman  &  Co.,  manufacturers  of 
fancy  leather  and  other  manufacturers  of  bag,  case,  and  strap  leather, 
Hoboken,  N.  J. 

Hearings:  Page  4493. 

Witness :  Mr.  E.  A.  Brand,  representing  the  Tanners'  Council  of 
the  United  States  of  America,  New  York  City. 

Rates  suggested. — "  It  is  believed  that  a  duty  on  all  classes  of 
leather  is  necessary  for  the  protection  of  American  tanners,  but  inas- 
much as  the  labor  costs  vary  in  the  production  of  the  several  kinds  of 
leather,  the  amount  of  protection  needed  necessarily  varies." 

Remarks. — "Practically  all  tanners,  whether  of  heavy  or  light 
leather,  are  united  in  the  belief  that  free  hides,  skins,  and  tanning 
materials  are  of  the  utmost  importance  to  the  tanning  industry  of 
the  United  States." 

Hearings :  Pages  4469-4473. 

Witness:  Mr.  Fred  C.  Fabel,  representing  the  American  Oak 
Leather  Co.  and  certain  other  sole  leather  tanners. 

A  brief  submitted,  "Why  hides  should  remain  on  the  free  list," 
is  arranged  under  the  following  headings : 

1.  "A  duty  on  hides  will  produce  only  a  negligible  amount  of 
revenue,  which  will  be  many  times  offset'  by  a  decrease  in  revenue 
from  income  taxation." 

Experience  with  the  15  per  cent  ad  valorem  duty  on  hides  under 
the  Dingley  law  does  not  indicate  that  the  Government  would  derive 
any  considerable  revenue  from  a  hide  duty  at  the  present  time,  after 
deducting  cost  of  collections  and  expenses  of  adjusting  drawbacks. 
The  contention  that  imports  of  hides  are  now  much  larger  and  that 
revenue  would  therefore  be  greater  is  based  on  the  experience  of 
the  last  few  years,  when  imports  were  abnormal  and  prices  of  hides 
were  unusually  high. 

A  duty  on  hides  will  reduce  the  exports  of  shoes  and  this,  in  turn, 
will  reduce  the  output  of  leather,  correspondingly  diminishing  the 
imports  of  hides  and  the  revenue  therefrom.  Furthermore,  foreign 
competition  in  leather,  in  the  home  market,  will  reduce  the  taxable 
income  of  American  tanners,  more  than  offsetting  any  revenue  from 
hide  duties. 

2.  "A  duty  on  hides  will  not  result  in  any  perceptible  added  price 
to  the  farmer  for  his  cattle,  but  will  result  in  a  largely  increased 
price  which  he  will  have  to  pay  for  shoes,  harness  and  all  other 
leather  products." 

Hides  are  a  by-product,  cattle  being  raised  for  dairy  or  beef 
values.  The  price  of  the  live  animal  is  not  affected  by  the  condition 
of  the  hide.  The  price  for  cattle  is  determined  by  the  current  de- 
mand for  beef,  not  by  the  demand  for  hides ;  it  is,  in  fact,  often  in 
direct  opposition  to  that  demand. 

Those  who  advocate  a  duty  on  hides  estimate  that  farmers  will 
benefit  by  as  much  as  $34,000,000  a  year.  The  interests  represented 
by  the  witness  contend  that  the  farmer  would  not  get  any  appre- 
ciable part  of  this  amount — it  would  stay  with  the  packer.  But  even 
if  the  farmers  should  secure  such  an  increase  in  income,  it  would  be 
more  than  offset  by  the  increased  prices  of  shoes,  harness,  belting, 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  549 

automobile    leather    and    other    articles,    estimated    to    amount    to 
$38,600,000. 

3.  "A. duty  on  hides  will   seriously   and   injuriously   affect   our 
commerce  with  foreign  nations,  particularly  with  those  of  South 
America,  and  largely  decrease  our  export  trade." 

It  is  necessary  to  foster  this  country's  foreign  trade,  and  the 
greatest  opportunity  is  offered  by  South  America.  Without  buying 
from  these  countries  goods  can  not  be  sold  to  them,  and  import  duties 
on  hides  would  lessen  United  States  purchases  of  one  of  their  most 
important  commodities.  The  tanners  of  countries  admitting  hides 
free  would  be  in  a  more  favorable  position  than  domestic  tanners; 
the  exports  of  foreign  countries  to  South  America  would  be  stimu- 
lated and  United  States  exports  curtailed. 

4.  "A  duty  on  hides  will  not  'encourage  the  industries  of  the 
United  States.'  but  will  tend  to  destroy  the  business  of  the  inde- 
pendent tanners  and  throw  the  control  of  the  tanning  and  shoe  in- 
dustry of  the  country  into  the  control  of  the  large  packers." 

The  production  of  domestic  hides  is  insufficient  for  the  needs  of 
domestic  tanners:  about  half  the  hides  must  be  imported.  The 
packers  produce  about  65  per  cent  of  the  domestic  output,  and  this 
percentage  includes  a  very  much  higher  proportion  of  the  heavy  or 
more  desirable  hides.  The  packers  tan  about  60  per  cent  of  the  sole 
leather  made  in  this  country:  if  the  independent  tanner  will  not 
pay  their  price  for  hides,  they  tan  the  hides  and  compete  with  the 
former  in  the  sale  of  finished  leather. 

The  report  of  the  Federal  Trade  Commission  (August  21,  1918) 
is  quoted  in  this  connection :  "  They  may  not  be  able  to  put  a  tanner 
out  of  business  at  once,  but  they  have  the  power  to  do  it  if  they  are 
so  disposed."  The  brief  asserts  that  the  packers  have  secured  this 
position  primarily  through  their  control  of  the  domestic  hide  market 
and  their  very  large  percentage  of  influence  in  the  hide  markets  of 
South  America.  A  duty  on  hides  would  increase  their  advantage 
over  the  independent  tanner,  and  if  they  were  to  secure  control  of 
the  leather  industry  it  will  be  but  a  short  step  for  them  to  secure 
control  of  the  shoe  industry.  American  tanners  believe  that  a  recip- 
rocal duty  should  be  placed  on  leather  to  prevent  the  dumping  of 
foreign  leather  in  this  country,  but  the  independent  sole-leather 
tanner  is  so  convinced  of  the  necessity  of  free  hides  to  his  continued 
existence  that  he  will  accept  free  leather  as  the  price  of  free  hides. 

5.  "A  duty  on  hides  will  inflict  on  the  American  public  an  in- 
crease in  the  cost  on  shoes  alone  of  upward  of  $100,000,000,  in  addi- 
tion to  the  increased  costs  of  all  other  leather  products." 

This  increase  in  the  cost  of  living  to  the  general  public  will  not  be 
balanced  by  any  compensating  advantage. 

Conclusion :  "  We  confidently  hope  and  believe  that  Congress  will 
refuse  to  accede  to  the  proposal  to  place  a  duty  on  hides  which  would 
not  result  in  appreciable  advantage  to  the  farmer  or  the  production 
of  any  material  amount  of  revenue,  but  which  would  impose  a  very 
heavy  burden  of  expense  on  the  entire  American  people  without  any 
possible  compensating  advantage." 

The  brief  is  signed  by  40  leather-manufacturing  companies. 

Hearings :  Pages  4493-4495. 

Witness :  Mr.  Frederick  Carlisle,  representing  harness-leather  tan- 
ners, New  York  City. 

77134—22 36 


550  DIGEST   OF   TARIFF   HEARINGS,   H.  R.   7456. 

Mr.  E.  A.  Brand  presented  a  brief,  abstracted  below,  for  Mr. 
Frederick  Carlisle,  who  was  unable  to  be  present. 

Size  of  industry. — The  tanning  industry  of  Canada  has  expanded 
rapidly  during  the  past  decade.  The  value  of  the  output  of  all  kinds 
of  leather  in  1915  was  $23,654,491,  and  in  1917,  $41,117,128.  The 
Canadian  Harness-leather  tanners  have  gained  a  post-war  foothold 
in  this  country,  as  shown  by  the  importation  of  $834,010  worth  in  the 
calendar  year  1919,  $338,014  in  1920,  and  $240,000  in  the  first  six 
months  of  1921. 

Rates  suggested. — Unless  reciprocal  arrangements  are  provided, 
so  that  harness  leather  from  the  United  States  can  enter  Canada  on 
the  same  basis  that  Canadian  imports  enter  the  United  States,  the 
harness-leather  tanners  of  this  country  believe  themselves  entitled 
to  a  duty  of  16  per  cent  ad  valorem,  which  would  equal  the  Canadian 
duty  of  15  per  cent  ad  valorem  plus  1  per  cent  excess  sales  tax  on 
all  imported  goods. 

Remarks. — Canada  is  the  only  country  from  which  competition  on 
harness  leather  is  seriously  felt. 

Several  tanning  firms  in  this  country  have  received  a  letter  sent 
out  by  the  board  of  trade  of  a  Canadian  city,  urging  them  to  move 
across  the  border  on  account  of  the  preference  given  by  India  to 
other  parts  of  the  British  Empire  in  the  matter  of  export  duty  on 
hides  and  skins.  The  duty  is  15  per  cent,  of  which  two-thirds  is  re- 
mitted to  purchasers  in  Canada  and  other  parts  of  the  empire. 

Hearings :  Pages  4864-4866. 

Witness :  Mr.  Laird  H.  Simons,  representing  kid-leather  tanners  of 
the  United  States,  Philadelphia,  Pa. 

Costs  and  selling  prices. — Before  1889  the  American  market  was 
dominated  by  French  kid.  which  sold  at  prices  varying  from  50  cents 
to  $1.50  per  square  foot.  Chrome  (mineral)  tanning  was  introduced 
in  1889  and  the  industry  was  given  protection,  together  with  free  raw 
materials,  under  the  tariff  laws  of  1890,  1894,  1897,  and  1909.  The 
price  to  the  American  consumer  for  American-tanned  kid  was  re- 
duced to  less  than  one-third  the  former  cost  for  French  kid.  The 
lowest  grades  of  American  kid  sold  for  about  10  cents  per  square 
foot,  the  best  grades  for  35  cents,  the  average  being  about  20  cents. 

Size  of  industry. — There  are  about  60  independent  competitive 
firms  tanning  goat,  kid,  and  kangaroo  skins  into  shoe  leather.  These 
firms  have  between  8,000  and  10,000  employees.  Under  the  stimulus 
of  war  needs  for  leather  and  the  interruptions  of  trading  facilities, 
the  world  factory  capacity  for  the  tannage  of  kid  leathers  has  been 
greatly  increased.  This  is  especially  true  of  England,  Canada,  and 
Germany ;  new  factories  have  been  started  in  the  Netherlands,  Spain, 
Brazil,  Chile,  Argentina,  and  Japan.  The  American  factory  capacity 
has  been  almost  doubled. 

Rates  suggested. — Twenty  per  cent  ad  valorem.  Kid  leather  made 
from  goat,  kid,  and  kangaroo  skins  should  be  put  under  paragraph 
1431.  Goat,  kid,  and  kangaroo  skins  should  l^e  admitted  free. 

Goat  skins  produced  in  this  country  are  not  suitable  for  leather. 
The  skins  used  by  tanners  are  99  per  cent  imported,  while  kangaroo 
skins  are  100  per  cent  imported.  These  skins  should  be  retained  on 
the  free  list,  but  put  in  a  separate  paragraph,  which  might  read: 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  551 

Skins  of  goat,  kid.  and  kangaroo,  raw  or  uncured,  or  dried,  salted, 
or  pickled. 

Remarks. — India  produces  about  40  per  cent  of  the  world's  supply 
of  raw  goat  and  kid  skins.  On  September  11,  1919,  that  country  im- 
posed a  duty  of  15  per  cent  ad  valorem  on  exports  of  raw  hides  and 
skins;  two-thirds  of  this  duty  is  remitted  to  purchasers  in  other  parts 
of  the  British  Empire.  In  this  connection  the  interests  represented 
by  the  witness  heartily  indorse  section  No.  302  of  the  bill.  France, 
Germany,  and  Canada,  the  principal  competitors,  impose  heavy 
duties  on  leather  coming  from  this  country  but  can  send  their  own 
leather  into  this  country  free  of  duty.  The  United  States  uses  ap- 
proximately two-thirds  of  the  world's  raw  material  suitable  for 
making  this  kind  of  leather. 

Hearings :  Pa^es  4497-4498. 

Witness :  Mr.  Frederick  C.  Stresau.  representing  side  upper- leather 
tanners. 

Costs  and  selling  prices. — Wages  now  paid  are  100  per  cent  higher 
than  pre-war,  although  33  per  cent  less  than  when  at  the  highest  point. 
A  protective  duty  is  necessary  to  maintain  the  American  standard  of 
wages. 

Germany  is  the  principal  competing  country;  large  German  tan- 
ners pool  their  requirements  for  raw  material  and  also  have  from  30 
to  90  days  in  which  to  pay  for  it,  while  the  custom  in  the  United 
States  is  to  pay  on  delivery. 

Size  of  industry. — The  United  States  and  Germany  are  the  leading 
countries  in  the  production  of  side  upper  leather,  which  is  made  from 
"  green-salted  and  air-dried  light  cattle  hides,  ranging  in  weight, 
green-salted  basis,  from  25  to  50  pounds.  Cattle  hides  are  split  in 
two  from  tail  to  head  prior  to  processing,  in  order  to  facilitate  han- 
dling, each  half  then  being  designated  as  a  side..' " 

Prior  to  the  war,  Germany's  tanning  equipment  was  TO  per  cent  as 
large  as  that  of  this  country,  and  it  has  since  been  enlarged.  An  up- 
to-date  chrome  tannery  can  be  erected  at  short  notice  and  with  leather 
on  the  United  States  free  list  the  Germans  will  probably  enlarge  their 
plants  to  take  full  advantage  of  this  market. 

Rates  suggested. — "  On  cattle  side  upper  leather,  dressed,  n.  s.  p.  f ., 
20  per  cent  ad  valorem."  This  is  based  on  the  assumption  of  free  raw 
materials. 

Remarks. — The  Germans  are  operating  their  plants  to  capacity, 
while  the  tanning  industry  in  this  country  has  not  operated  over  40 
per  cent  of  capacity  during  the  past  16  months. 

Americans  are  sending  hides  to  Germany  to  be  tanned  on  contract, 
and  England,  which  was  formerly  the  largest  foreign  market  for 
American  leather,  is  buying  from  Germany. 

German  side  leather  made  very  appreciable  inroads  into  domestic 
markets  under  the  tariff  law  of  1913. 

Hearings :  Pages  4498-4501. 

AVitness:  Mr.  Walter  T.  Creese,  representing  Creese  &  Cook  Co. 
and  other  calf  and  veal  leather  manufacturers,  Danvers,  Mass. 

Costs  and  selling  prices. — In  this  statement  the  word  "  calf  "  refers 
to  both  calf  and  veal  leathers.  Germany  is  the  largest  producer  of 
calf  leathers  in  the  world  and  has  a  much  lower  labor  cost  than  the 


552  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

United  States.  "  The  highest  skilled  tannery  labor  is  paid  in-  Ger- 
many from  $2.25  to  $3  per  week  as  compared  with  $25  to  $35  paid  in 
this  country,  and  women  who  are  employed  are  paid  considerably 
less.  Some  of  these  women  are  earning  only  25  cents  per  day  at  the 
present  rate  of  exchange  *  *.  The  majority  of  the  tanning 

materials  used  in  the  manufacture  of  calf  leathers  are  made  by  the 
same  cheap  labor  in  Germany  and  now  enjoy  a  protective  tariff." 

The  raw  material  cost  is  about  60  per  cent  of  the  total,  wrhile  labor 
makes  up  most  of  the  balance.  European  calfskin  tanners  have 
access  to  supplies  of  the  best  skins.  "  On  account  of  her  extremely 
cheap  labor  Germany  is  able  to  outbid  all  other  countries  in  the  pur- 
chase of  raw  materials. 

"  Bona  fide  offers  have  been  made  by  German  tanners  to  manufac- 
ture calf  leather  for  American  account  on  a  basis  of  5£  cents  a  foot, 
f.  o.  b.  Germany.  To  produce  calf  leather  in  this  country,  up  to  and 
including  that  state,  would  cost  American  tanners  from  11  to  14 
cents  per  foot." 

Size  of  industry. — "  The  calf  leather  industry  in  this  country  is  a 
large  one.  having  been  developed  during  the  past  half  century  under 
protective  tariffs." 

Rates  suggested. — That  to  paragraph  1431  be  added  "  Calf  and 
veal  leathers,  finished  or  partly  finished,  25  per  centum  ad  valorem." 

Remarks. — Importations  of  calf  leather  increased  in  1914  under 
the  Underwood  tariff.  These  came  mostly  from  Germany  and,  after 
that  source  was  closed,  from  Canada.  A  protective  tariff  on  this 
product  would  probably  not  increase  the  price  to  domestic  con- 
sumers. 

There  is  a  Canadian  duty  on  calf  leather  of  15  per  cent.  "  There 
are  few  nations  which  have  not  either  a  protective  tariff  or  prohibi- 
tive tariff  on  calf  leathers." 

The  calf  leather  entering  into  the  manufacturing  cost  of  a  shoe 
represents  about  25  per  cent  of  the  cost. 

Hearings :  Pages  4501-4503. 

Witness:  Mr.  Maxwell  J.  Lowry,  representing  patent-leather  tan- 
ners of  the  Tanners'  Council. 

Costs  and  selling  prices. — German  labor  in  this  industry  is  paid 
$2.25  to  $3  per  week,  based  on  the  present  value  of  German  currency, 
while  in  this  country  the  wages  are  $25  to  $35.  Germany  has  access 
to  better  raw  material  and  manufactures  her  own  tanning  materials 
at  a  cost  lower  than  the  American. 

About  half  the  expense  in  the  production  of  patent  leather  is  for 
labor. 

Canadian  patent  leather  is  being  sold  in  this  country  in  steadily 
increasing  quantities  and  at  prices  which  American  tanners  can  not 
meet.  Canadian  labor  is  on  a  lower  wage  basis  than  the  domestic. 
German  patent  leather  is  also  being  sold  in  this  country  at  prices 
below  the  domestic  cost  of  production. 

Rates  suggested. — TMfet  to  paragraph  1431  of  the  pending  tariff 
bill  there  be  added  "  and  patent,  japanned,  varnished,  and  enameled 
shoe-upper  leather,  5  cents  per  foot  and  25  per  cent  ad  valorem." 
This  on  American  valuation.  "  Patent  leather  requires  a  higher  duty 
than  other  kinds  of  upper  leathers,  because  the  production  cost  is 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  553 

about  twice  as  much."     Labor  is  the  principal  item  in  the  cost  of 
japanning,  which  is  all  handwork. 

Remarks. — German  tanners  had  adopted,  before  the  war,  the  im- 
proved American  process  for  making  light,  flexible  patent  leather, 
and  were  not  only  capturing  American  foreign  markets  but  sending 
patent  leather  to  this  country.  Canadian  tanners  improved  their 
product  after  1915  and  invaded  this  market. 

Hearings :  Pages  4495-4496. 

Witness:  Mr.  George  B.  Bernheim,  representing  R.  Newman  & 
Co.,  of  Hoboken,  X.  J..  manufacturers  of  fancy  leather,  and  other 
case,  bag,  and  strap  leather  manufacturers,  Hoboken.  N.  J. 

Costs  and  selling  prices. — Labor  represents  about  50  per  cent  of 
the  cost  of  the  finished  article.  European  labor  is  paid  much  lower 
wages  than  the  American.  "  The  success  of  finishing  the  leathers 
named  is  dependent  on  the  attention  given  to  each  individual  skin  by 
skilled  workmen,  and  no  machinery  has  yet  been  devised  to  replace 
the  hand-labor  operations  so  essential  to  the  production  of  artistic 
leather." 

Size  of  industry. — There  are  about  75  firms  engaged  in  the  indus- 
try. 

Rates  suggested. — Twenty  per  cent  ad  valorem.  It  is  suggested 
that  these  leathers  be  put  under  paragraph  1431,  so  that  it  should 
read: 

Chamois  skins,  pianoforte,  pianoforte-action,  player-piano  action,  enameled 
upholstery  leather,  bag,  strap,  case  and  glove  leather,  finished,  in  the  white 
or  in  the  crust,  and  seal,  sheep,  goat,  calf,  pig,  and  all  other  leathers,  dressed 
and  finished  other  than  shoe  leather,  not  specially  provided  for  in  this  section, 
20  per  cent  ad  valorem. 

Remarks. — The  fancy,  bag,  strap,  and  case  leather  manufacturers 
desire  free  raw  materials  and  a  duty  on  leather. 

PARAGRAPH  1600. — HARNESS  AND  SADDLERY. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  J.   A.   Roberts,  representing  the  Wholesale   Saddlery   Association  of 
the  United  States,  Hartford,  Conn. 

Hearings :  Pages  4503-4511. 

Costs  and  selling  prices. — Lower  rates  of  wages  are  paid  in  this 
industry  abroad.  "  Much  of  the  handwork  is  done  in  the  homes  of 
the  mechanics  by  members  of  their  families,  and  so  without  over- 
head expense  to  the  master  producer.  Similar  conditions  do  not 
prevail  in  the  United  States."  Foreign-held  surplus  harness  and 
saddlery  stocks  are  a  further  menace  to  the  industry,  and  the  duty 
of  35  per  cent  imposed  by  Canada  on  imports  of  harness  and  sad- 
dlery has  closed  that  market  to  domestic  manufacturers.  The 
largest  harness  and  saddlery  manufacturing  and  jobbing  house  in 
North  America  is  in  Winnipeg.  The  Canadian  manufacturer  does 
not  have  to  adapt  his  product  especially  to  the  American  market. 

Size  of  industry. — The  industry  has  suffered  of  late  from  changes 
in  the  methods  or"  transportation. 


554  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

Rates  suggested. — Saddlery  and  harness  should  be  placed  under  a 
separate  paragraph.  A  duty  of  35  per  cent  on  foreign  valuation — 
the  rate  which  Canada  imposes — would  be  satisfactory.  Duty  has 
to  be  paid  on  worsted  girth  webbing,  wooden  "  trees  "  and  other 
parts  used  in  making  saddlery,  while  the  finished  articles  come  in 
free.  (The  insertion  of  "  except  metal  parts  "  in  paragraph  1600 
has  changed  the  situation  in  respect  to  the  duty  on  such  parts  of 
harness  and  saddlery.)  Section  No.  302  does  not  afford  relief,  or  if 
used,  would  be  invoked  only  after  much  damage  and  loss  had  been 
sustained. 

Remarks. — "  Now,  I  submit  to  you  the  impossibility  of  our  manu- 
facturing an  article  for  pleasure  use  and  an  item  of  luxury,  and 
paying  a  duty  on  the  absolutely  essential  materials  going  into  it  if 
we  manufacture  it  in  the  United  States,  and  competing  with  Eng- 
lish-made goods  manufactured  at  a  lower  wage  rate  than  paid  in  the 
United  States  factories." 

PARAGRAPHS  1600  AND  1601. — LEATHER  AND  SHOES. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  Charles  H.  Jones,  representing  the  National  Boot  &  Shoe  Manufac- 
turers' Association  of  the  United  States,  Whitman,  Mass. 

Hearings :  Pages  4474^491. 

The  witness  stated  that  the  majority  of  the  shoe  manufacturers 
would  prefer  free  hides,  free  leather,  and  free  shoes  to  a  duty  on 
each.  A  duty  on  hides  would  increase  the  cost  of  shoes  and  other 
leather  goods  to  the  domestic  consumer,  handicap  the  American 
shoe  and  leather  industries  in  foreign  markets  and  decrease  the  ex- 
portation of  those  products;  it  would  not  stimulate  the  domestic 
production  of  hides  to  any  extent,  since  they  are  a  by-product,  nor 
would  it  add  to  the  farmers'  or  stock-raisers  income,  as  the  packers 
would  get  the  increase  in  the  price  of  hides;  it  would  put  the  in- 
dependent tanners  at  the  mercy  of  the  packers  and  would  not  yield 
the  Government  any  considerable  revenue.  The  leading  arguments 
in  the  testimony  and  brief  are  abstracted  below : 

The  imposition  and  repeal  of  import  duties  by  the  Payne-Aldrich 
and  Underwood  tariffs,  respectively,  are  referred  to.  A  tax  on 
hides  has  been  proposed  whenever  a  tariff  bill  has  been  under  con- 
sideration since  the  Civil  War,  but  no  Ways  and  Means  Committee 
has  ever  included  it  in  any  bill  reported.  So  far  as  can  be  learned 
no  country  whose  industries  are  highly  developed,  and  where  manu- 
facturing is  protected,  has  ever  imposed  such  a  tax.  It  found  its 
place  in  the  Dingley  bill  through  the  insistent  demand  of  certain 
Senators  from  the  far  western  States  and  is  believed  to  have  been 
conceded  to  them  on  a  trading  basis,  rather  than  as  a  protective 
measure. 

The  purpose  of  protective  taxes  is  to  protect  some  useful  Ameri- 
can industry,  to  insure  to  American  workmen  employment  at  rea- 
sonable wages,  or  to  produce  revenue  for  the  Government.  "It  is 
easy  to  show  that  this  tax  (in  the  bill)  will  do  none  of  these  things." 
Hides  are  a  by-product  and  production  would  not  be  increased  on 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    1456.  555 

account  of  a  duty.  Besides,  as  the  hide  is  worth  about  one-fifteenth 
part  of  the  value  of  the  animal,  a  duty  of  15  per  cent  on  that  frac- 
tion value  "  means  nothing  in  the  way  of  protection."  As  regards 
revenue  production  during  the  twelve  years  that  this  duty  was  in 
force  it  produced  only  between  one  and  two  million  dollars  a  year. 

The  increased  cost  of  the  raw  material  due  to  the  duty  will  be  re- 
flected in  increased  cost  of  leather  and  articles  made  from  leather. 
In  the  case  of  heavy  shoes,  the  increase  in  cost  at  the  factory  would 
be  10  to  12  cents  a  pair  on  the  prewar  basis  of  cost  and  would  be 
much  more  to  the  consumer.  It  is  estimated  that  the  total  increase 
in  cost  of  footwear  to  the  people  of  this  country  would  be  twenty  to 
twenty- four  million  dollars  a  year. 

If  the  proposed  duty  is  imposed,  and  American  tanners  receive 
the  drawback  on  exported  leather  made  from  imported  hides,  such 
leather  will  sell  for  about  2  cents  less  per  foot  to  foreigners  than  to 
the  domestic  consumer.  This  condition  would  assist  the  foreigner 
in  competing  with  American  shoe  manufacturers  in  overseas  mar- 
kets, and  hides  from  the  great  cattle-raising  areas  would  be  diverted 
to  free  markets. 

The  prices  of  hides  are  fixed  in  a  world  market.  The  supply 
of  hides,  in  proportion  to  the  demand,  is  decreasing;  every  hide  is 
needed  and  will  tend  to  be  sent  to  a  free  market  for  sale.  The  duty 
on  hides,  in  effect  from  1897  to  1909,  reduced  importations,  thus 
injuring  domestic  industry  and  encouraging  the  tanning  business 
abroad.  After  1909,  when  hides  were  on  the  free  list  again,  the  im- 
ports increased.  Much  other  material  necessary  to  the  manufacture 
of  shoes  is  used  with  them,  labor  is  employed,  and  manufacture  and 
industry  are  stimulated.  Even  under  present  conditions,  this  coun- 
try is  obliged  to  import  40  to  45  per  cent  of  all  the  hides  used  here. 
The  freight  rate  on  leather  exported  from  England  via  English  lines 
to  New  York  is  one  cent  a  pound,  while  the  rate  on  leather  going  to 
England  from  New  York  is  2J,  cents  a  pound.  There  is  a  15  per  cent 
export  duty  on  hides  sent  from  India,  two-thirds  of  which  is  re- 
bated to  purchasers  in  other  parts  of  the  British  Empire.  England's 
manufacturers  are  protected  by  this  differential. 

The  witness  also  takes  up  the  argument  in  favor  of  a  duty  on 
hides,  presented  in  a  brief  filed  with  the  Committee  on  Ways  and 
Means  by  Mr.  S.  H.  Cowan,  of  the  National  Live  Stock  Association, 
on  December  5, 1908.  Mr.  Cowan  had  asked  wThat  difference  it  made 
•to  the  tanner,  who  gets  the  benefit  of  a  hide  duty,  the  man  who 
slaughters  the  steer,  or  the  farmer. 

The  reply  to  this  is  that  the  packers  now  tan  more  than  50  per  cent 
of  all  hides  going  into  sole  leather  in  this  country,  besides  consider- 
able side  upper  and  calf  leather.  Of  the  entire  yield  of  hides  in 
this  country,  65  per  cent  are  packer  hides  and  35  per  cent  are  country 
hides.  "  Their  substantial  progress  in  the  control  of  the  industry 
has  not  been  brought  about  because  they  are  better  tanners  or  better 
merchants  but  simply  in  consequence  of  their  control  of  the  raw 
material." 

A  large  part  of  the  increased  price  resulting  from  the  duty  will 
be  secured  by  the  packers  and  will  add  to  their  advantage  over  the 
independent  tanners,  thus  leading  to  packer  domination  of  the  shoe 


556  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

business.  The  quality  of  leather  produced  by  the  packers  is  inferior, 
and  "  constantly  tends  to  break  down  the  standards  of  excellence 
to  which  the  industry  has  become  accustomed,  and  will  tend  in  the 
long  run  to  become  a  very  substantial  item  in  the  cost  and  value  of 
leather  goods  in  general  use  throughout  the  country." 

The  brief  goes  on  to  state  that  the  price  of  the  complete  animal 
is  invariably  less  per  pound  than  the  price  of  the  hide.  Consequently, 
if  steers  are  bringing  12  cents  a  pound  on  the  hoof,  the  hide  costs  the 
packer  12  cents,  while  the  market  price  of  the  hide  at  that  moment 
may  be  16  cents  and  the  independent  tanner  must  purchase  it  at  that 
higher  price. 

Following  the  depression  of  1907,  during  the  spring  and  summer 
of  1908,  the  packers  operated  in  the  market  to  keep  up  the  price  of 
hides.  They  had  tanned  large  quantities  of  hides  acquired  at  low 
prices  and  wished  to  maintain  the  price  of  leather  which  they  had 
for  sale.  The  average  price  of  native  steers  declined  from  $6.10  per 
hundred  in  the  first  six  months  of  1908  to  $6  per  hundred  in  the  last 
six  months  of  the  year,  while  the  average  price  of  native  steer  hides 
increased  from  11.17  cents  per  pound  to  15.69  cents  per  pound.  The 
brief  alleges  that  this  operation  has  been  repeated  or  attempted 
whenever  the  market  has  offered  a  favorable  opportunity. 

The  brief  also  refers  to  the  following  statement  of  the  Federal 
Trade  Commission,  made  not  in  relation  to  the  proposed  duty,  but 
to  the  position  of  the  packers  without  any  hide  duty  at  all :  "  They 
may  not  be  able  to  put  a  tanner  out  of  business  at  once,  but  they  have 
the  power  to  do  it  if  they  are  so  disposed." 

The  finish  and  beef  value  of  the  animal  are  the  principal  factors 
in  determining  the  price  which  the  grower  receives;  neither  he  nor 
the  purchaser  can  know  the  exact  price  which  the  hide  will  bring. 
The  question  is  asked :  "  Is  it  reasonable  to  assume  that  in  selecting 
and  purchasing  cattle  for  slaughter  so  small  a  matter  as  15  per  cent 
on  one-sixteenth  of  the  value  of  the  animal  can  be  recognized  by  the 
buyer  and  added  to  the  beef  value  of  the  animal  ?"  The  packer  allows 
an  estimated  percentage  of  the  value  of  cattle  to  cover  the  value  of 
offal — hides,  tallow,  horns,  hoofs,  butter  fats,  etc.  "  Business  pru- 
dence compels  this  allowance  to  be  made  small  enough  to  make  the 
packer  safe  in  his  purchase  of  the  animal.  Then  any  market  condi- 
tion, tariff,  tax,  or  other  factor  which  tends  to  increase  the  price  of 
the  hides  or  other  offal  simply  increases  their  profit." 

Other  factors  make  it  difficult,  if  not  impossible,  for  the  hide  value 
to  be  taken  into  account  when  buying  any  specific  lot  of  steers. 
Brands  on  steers  do  not  affect  their  price,  yet  a  branded  hide  is  not 
worth  as  much  as  an  unbranded  one ;  hides  are  not  sold  immediately, 
but  are  kept  in  the  cellars  of  the  packers  for  months,  during  which 
time  their  value  often  fluctuates  greatly ;  a  thin  cow  will  be  sold  as  a 
canner  at  a  very  low  price,  while  a  cow  in  good  beef  condition  will 
bring  a  higher  price,  but  the  hides  will  go  into  the  same  lot  and  be 
sold  to  the  tanner  at  the  same  price. 

The  conclusion  is  repeated  that  so  small  a  variation  in  the  price 
of  the  hide  as  would  be  represented  by  a  duty  of  15  per  cent  could 
make  no  appreciable  difference  in  the  price  paid  by  the  packer  for 
the  animal  for  slaughter. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  557 

PARAGRAPH  1601. — SHOES. 

• 
WITNESS.  AND  INTEREST  REPRESENTED. 

FAVORING  HIGH  DUTIES: 

Mr.  John  S.  Kent,  representing:  the  National  Boot  and  Shoe  Manufacturers' 
Association  of  the  United  States,  Brockton,  Mass. 

Hearings :  Pages  4511-4514. 

Costs  and  selling  prices. — The  manufacturer  gets  about  $6  for  a 
pair  of  shoes  retailing  at  $9.  The  proportion  or  the  $6  represented 
by  labor  cost  is  20  to  25  per  cent.  Wages  have  been  reduced  10  to 
20  per  cent  in  the  shoe  industry..  Wages  paid  abroad  are  lower 
than  those  paid  in  this  country. 

Size  of  industry. — The  boot  and  shoe  manufacturing  industry  ranks 
sixth  and.  with  its  allied  industries,  third  among  the  industries  of  the 
United  States.  The  1919  census  report  gives  the  number  of  establish- 
ments as  1,441 ;  number  of  shoes  produced,  329,528,900  pairs;  value  of 
output,  $1,152,016,000,  and  an  annual  wage  distribution  of  more 
than  $200,000,000  among  over  200,000  workers.  Imports  of  shoes 
have  increased  greatly  during  1919,  1920,  and  1921.  During  the 
fiscal  year  ending  June  30,  1919.  the  number  of  pairs  imported  wras 
49.743":;  fiscal  year  1921,  number  of  pairs  206,666.  Imports  were 
from  England,*  Germany,  and  Japan.  On  the  other  hand,  exports  of 
American  shoes  have  been  decreasing;  in  the  fiscal  year  ending  June 
30,  1920,  they  amounted  to  20,289,557  pairs  and  in  the  fiscal  year 
ending  June  30,  1921,  to  12,581,181. 

Rates  suggested. — Fifteen  per  cent  ad  valorem,  if  hides  are  left  on 
the  free  list. 

'  Remarks. — Canada  imposes  a  duty  of  30  per  cent  ad  valorem  on 
American  shoes.  It  is  hoped  that  "  when  the  tariff  bill  under  con- 
sideration becomes  law  it  will  contain  a  clause  giving  the  President 
authority  to  tax  imports  from  countries  that  tax  our  products." 

PARAGRAPH  1603. — ASPHALT. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  W.  E.  Humphrey,  representing  the  Barber  Asphalt  Paving  Co.,  "Wash- 
ington, D.  C.,  and  other  paving  interests. 

Mr.  Herbert  Abraham,  representing  the  Prepared  Roofing  Association,  New 
York  City. 

Hearings:  Pages  4515-4518. 

Witness :  Mr.  W.  E.  Humphrey. 

Size  of  industry. — Leaving  out  of  consideration  asphalt  produced 
from  oil,  with  which  the  witness  is  not  concerned,  there  is  no  native 
asphalt  produced  in  this  country.  Protection  of  native  asphalt  could 
not  therefore  stimulate  production  or  develop  domestic  natural  re- 
sources. 

Comparability.. — There  is  no  competition  in  price  with  Trinidad 
Lake  asphalt  to-day  at  $28  a  ton,  Bermuda  Lake  at  $38,  and  oil 
asphalt  at'  $12.  The  witness  distinguishes  between  "  native  "  and 
"  oil  "  asphalts ;  none  of  the  former  is  found  in  this  country  and  it  is 
these  which  are  used  largely  for  paving. 


558  DIGEST   OF   TARIFF   HEARINGS,  H.   R.   7456. 

Rates  suggested. — -The  witness,  himself  "  an  extreme  protectionist," 
thinks  i^  an  economic  mistake  to  tax  a  product  used  principally  by 
public  bodies,  because  in  making  the  transfer  from  one  pocket  to  the 
other  there  is  always  a  loss. 

Remarks. — A  brief  filed  by  the  witness  discusses  the  relative  merits 
of  native  and  oil  asphalts  and  the  cost  involved  in  the  use  of  inferior 
products. 

Hearings :  Pages  4712-4713. 

Witness :  Mr.  Herbert  Abraham,  representing  the  Prepared  Roof- 
ing Association,  New  York  City. 

Size  of  industry. — This  industry  is  carried  on  in  48  factories  in 
the  United  States,  the  production  of  which  represents  70  per  cent  of 
all  types  of  roofs  used  in  this  country.  In  1920,  2,837,500,000  square 
feet  "of  asphalt  roofing  and  shingles  were  manufactured.  For  these, 
asphalt  derived  from  Mexican  petroleum  is  the  most  suitable,  484,- 
000  tons  having  been  used  in  1920.  A  tax  of  35  cents  per  barrel  on 
crude  oil  would  increase  the  cost  about  $1,685,000  annually,  at  a 
time  when  a  revival  of  the  building  program  is  of  prime  importance 
to  relieve  unemployment  and  reduce  high  rentals. 

Rates  suggested. — Free  list. 

PARAGRAPH  1610.— WOOD  PULP. 
WITNESSES,  AND  INTERESTS  BEPBESENTED. 

FAVOBING  HIGHEB  DUTIES  : 

Mr.  Peter  G.  Thomson,  jr.,  representing  the  Champion  Fiber  Co.,  Cincin- 
nati, Ohio,  and  Canton,  N.  C. 

The  Columbian  Paper  Co.,  Philadelphia,  Pa.     (Brief.) 

Mr.  Courtney  Campbell,  representing  Carolina  Stock  Farms,  Foreston,  S.  C. 

Bastrop  Pulp  &  Paper  Co.,  Old  Hickory,  Tenn.     (Brief.) 

The  Pynetree  Paper  Co.,  Gordon,  Ga.     (Brief.) 

Port   Huron    Sulphite  &  Paper   Co.,   Port  Huron,   Mich.     (Brief.) 

Mr.  H.  H.  Bishop,  representing  the  Pulp  Manufacturers'  Association, 
New  York  City. 

Mr.  A.  C.  Goodyear,  representing  the  Bogalusa  Paper  Co.  and  other 
concerns. 

The  West  Virginia  Pulp  &  Paper  Co.  and  chemical  fiber  manufacturers 
from  different  sections  of  the  United  States.  (Briefs.) 

The  Filer  Fiber  Co.     (Brief.) 

Farmers  producing  pulp  wood  in  all  parts  of  the  United  States  and 
manufacturers  of  chemical  wood  pulp.  (Brief.) 

FAVOBING  PROPOSED  DUTIES  : 

The   Book   Paper   Manufacturers'    Association.     (Brief.) 
Mr.    Peter    G.    Thomson*    representing    the    Miami    Valley    Paper    Manu- 
facturers' Association.     (Brief.) 

Mr.  Frank  C.  Overton.  representing  the  Association  of  American  Wood 
Pulp  Importers.  (Brief.) 

Hearings:  Pages  4523-4533. 

Witness:  Mr.  Peter  G.  Thomson,  jr.,  representing  the  Champion 
Fiber  Co..  Cincinnati,  Ohio,  and  Canton,  N.  C. 

Size  of  industry. — The  pulp-wood  industry  ranks  as  the  most 
important  in  North  Carolina,  as  a  source  of  revenue  to  farmers 
and  small  land  owners.  In  normal  times  the  wood  supply  amounts 
to  $250,000  monthly,  and  the  monthly  pay  roll  is  $130.000,  making 
a  wide  distribution  of  money  in  farming  and  pioneer  districts  where 
it  is  so  badly  needed.  The  chemical  pulp  mills,  whose  costs  are 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  559 

over  TO  per  cent  labor,  can  supply  the  entire  requirements  of  America 
forever,  if  not  driven  out  of  business.  (See  tables  on  p.  4547.) 

Comparability. — Owing  to  the  large  importations  of  foreign  chemi- 
cal pulp  free  of  duty,  at  prices  below  American  costs,  the  wood  pur- 
chases have  stopped,  the  mills  shut  down,  and  thousands  of  workers 
and  their  families  are  in  actual  want.  In  Finland,  the  workers 
work  12  hours  or  more  at  ridiculously  low  wages.  America  can 
not  meet  the  competition  of  foreign  chemical  pulp  made  with 
such  cheap  labor.  For  the  quarter  ending  September,  1921,  Germany 
exported  16.000  tons  of  chemical  pulp  to  America,  and  Finland 
7.000  tons. 

Rates  suggested. — One  cent  a  pound  on  bleached  chemical  pulp 
and  six-tenths  of  a  cent  on  unbleached  chemical  pulp.  The  supplies 
and  materials  which  are  purchased  are  all  protected  with  duties,  and 
they  can  not  meet'  the  competition  of  foreign  chemical  pulp  made 
with  cheap  labor.  Interests  represented  wish  sufficient  specific  and 
ad  valorem  duty  to  enable  them  to  continue  in  business. 

Remark** — Witness  states  that  their  workers,  normally  about 
2,400,  are  all  white  native-born  Americans,  and  they  wish  to  employ 
them  so  that  they  can  live  according  to  American  standards,  with, 
proper  homes,  schooling,  and  hours  of  labor.  They  operate  on 
the  eight-hour  basis,  but  can  not  do  this  and  pay  suitable  wages,  if 
foreign  chemical  pulp  made  with  their  different  ideals  of  labor 
comes  in  free  of  duty.  Various  briefs  were  submitted  including 
tables  of  the  chemical  pulp  industry. 

Hearings :  Pages  4535-4536. 

Witness:  The  Columbian  Paper  Co.     (Brief.) 

Size  of  industry. — Chemical  wood  pulp  mills  employ  native  Amer- 
ican labor  only.  The  wage  scale  runs  from  $1.50  to  $5  per  day,  with 
a  few  very  expert  men  receiving  more.  Common  labor  receives  $9 
per  week  in  America  and  $4  per  week  in  Germany. 

Rates  suggested. — The  company  requests  six-tenths  of  1  cent  per 
pound  on  unbleached  chemical  pulp  and  1  cent  on  bleached  chemical 
pulp.  A  tariff  is  a  guaranty  against  unusual  importation  in  de- 
pressed times  like  the  present  (December,  1921).  when  foreign  coun- 
tries take  full  advantage  of  their  lower  costs  and  sell  at  a  price  be- 
low the  American  cost  of  production,  forcing  the  market  to  absorb 
their  production  while  American  production  waits  for  an  increased 
demand  so  that  it  can  also  begin  to  move.  The  tariff  requested 
would,  in  effect,  force  foreign  manufacturers  to  sell  in  America  at 
American  production  cost  and  pay  into  the  Treasury  of  the  United 
States  the  difference  between  their  own  low  costs  and  the  higher 
American  cost.  The  company  suggests  that  the  tariff  be  enacted 
without  delay  and  thus  rescue  the  chemical  pulp  industry  of  America 
from  a  most  desperate  situation. 

Remarks. — Wood,  the  raw  material  of  the  paper  industry,  is 
bought  from  farmers  and  country  landowners,  who  produce  it  with 
their  own  labor.  The  market  for  this  wood,  which  would  be  other- 
wise unmarketable,  provides  the  income  from  new  ground  which 
makes  clearing  a  possibility.  Few  farmers  could  afford  to  clear 
new  ground  if  there  were  no  return  from  the  labor  employed,  and 
if  the  timber  cut  had  to  be  piled  and  burned  with  additional  labor 
cost. 


560  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

Hearings :  Pages  4536-4540. 

Witness :  Mr.  Courtney  Campbell,  representing  the  Carolina  Stock 
Farms.  Foreston,  S.  C. 

Size  of  industry. — The  stock  farms  operate  4,300  acres.  The  only 
source  of  income  is  from  the  wood  produced  from  this  new  land, 
which  is  salable  for  only  one  purpose — chemical  pulp.  There  are 
several  hundred  millions  of  acres  of  similar  lands  in  the  United 
States  which  can  be  utilized  for  chemical  wood  pulp  only. 

Comparability. — To-day  (1921)  in  South  Carolina  the  labor  used 
in  the  chemical  pulp  industry  is  actually  facing  starvation.  These 
men  can  not  be  given  work  until  the  pulp  wood  is  sold,  and  it  can 
not  be  sold  at  present  because  the  mills  are  all  shut  down.  The 
yards  are  loaded  with  pulp  wood  and  thousands  and  thousands  and 
thousands  of  cords  are  lying  exposed  to  the  weather.  At  this 
time  chemical  pulp,  imported  by  America  from  Germany.  Sweden. 
Czechoslovakia,  Norway,  and  from  other  countries  by  the  million 
pounds,  is  being  sold  at  prices  below  the  cost  of  production  of  Ameri- 
can pulp  mills — Germany  receives  twice  the  price  in  America  for 
her  chemical  pulp  that  she  does  for  her  home  consumers.  America 
can  not  compete  with  Germany's  skilled  labor  cost  of  7  cents  an 
hour  against  62  cents  an  hour  in  America.  The  lowest  wage  paid  in 
America  in  the  South  is  $1.25  per  day." 

Hates  suggested. — A  duty  on  chemical  wood  pulp,  requested  not 
as  a  special  interest  seeking  favorable  legislation,  but  as  American 
farmers  for  themselves  and  their  labor.  The  tariff  duties  should  be 
so  apportioned  as  to  protect  American  laborers  as  well  as  American 
paper  manufacturers.  The  House  bill  gives  protection  where  it  is 
least  needed,  for  any  depression  in  the  industry  of  manufacturing 
paper  does  not  compare  with  the  ruin  that  is  facing  producers  of 
chemical  pulp. 

Remarks. — A  brief  submitted  states  that  the  stock  farms  are  en- 
gaged in  bringing  into  cultivation  waste  land,  and  thereby  adding 
to  the  resources  of  the  country.  If  the  wood  obtained  from  these 
lands  is  not  sold,  owners  can  not  afford  to  clear  it  and  it  must  be 
cleared  to  be  brought  into  production.  The  pulp  mills  are  idle  be- 
cause they  can  not  produce  pulp  at  the  price  offered,  and  because 
there  is  only  a  limited  demand  at  a  time  when  the  market  is  absorb- 
ing thousands  of  tons  of  foreign  pulp.  American  chemical  wood 
pulp  is  to  the  extent  of  70  per  cent  the  product  of  American  labor. 

Hearings :  Pages  4533-4534. 

Witness:  Bastrop  Pulp  &  Paper  Co..  Old  Hickory,  Tenn.  (Brief.) 
Comparability. — American  produced  chemical  wood  pulp  is  to-day 
(December,  1921)  unmarketable,  even  at  cost,  because  Finland, 
Sweden,  Germany,  Norway,  and  other  countries,  with  their  lower 
production  cost,  can  profitably  undersell  American  cost  in  the  only 
market  open  to  American  producers — the  market  of  the  United  • 
States.  These  countries  are  so  favorably  situated  that  they  can  sell 
in  America  below  American  cost  and  still  exact  twice  the  net  price 
for  which  they  sell  at  home.  A  statement  issued  by  the  Division  of 
Customs.  United  States  Treasury,  shows  that  on  a  certain  day  in 
1921  the  price  at  a  German  factory  to  a  German  buyer  was  2.956 
marks  per  kilo,  and  on  the  same  day  the  price  to  an  American  buyer 
was  5.238  marks  per  kilo,  nearly  twice  as  much. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 


561 


Remarks. — Seventy  per  cent  of  the  cost  of  American  chemical  pulp 
is  labor.  If  any  industry  has  a  right  to  protection  it  is  the  chemical 
wood-pulp  industry.  With  its  mills  shut  down  and  its  labor  idle 
while  foreign  pulp,  duty  free,  floods  American  markets,  it  faces 
stern  times. 

Hearings:  Pages  4534-^1535. 

Witness:  The  Pynetree  Paper  Co.,  Gordon,  Ga.  (Brief.) 
Remarks. — The  company  states  that  it  is  a  pioneer  American 
concern,  located  in  a  new  territory  for  the  chemical  wood  pulp,  tap- 
ping a  new  source  of  American  raw  material  of  which  there  is  an 
unlimited  supply,  and  paying  cash  mone}^  in  pay  rolls  to  American 
labor  in  an  out-of-the-way  section  where  cash  money  is  scarce.  It  is 
one  of  the  chemical  pulp  mills  that  invested  American  capital  in 
America  and  which  is  producing  values  from  American  resources. 
They  have  no  other  market  except  America,  and  that  market  is  com- 
pletely in  the  hands  of  foreign  producers  who  sell  below  American 
cost,  while  American  labor  is  going  hungry  and  the  timber  is  value- 
less and  the  many  mills  are  facing  annihilation. 

Hearings :  Page  4535. 

Witness :  Port  Huron  Sulphite  &  Paper  Co.,  Port  Huron,  Mich. 
(Brief.) 

Costs  and  selling  prices. — The  desperate  situation  of  the  chemical- 
pulp  mills  of  America  is  indicated  by  the  following: 

The  cost  of  producing  unbleached  chemical  pulp. 


1916 

1920 

1916 

1920 

Wood 

$16  6.5 

$35.  70 

$0.70 

$2.54 

Sulphur  
Limestone  

2.64 
'      .29 
1  31 

1.92 
.51 
2.18 

General  and  office  
Commissions  

Labor 

'.31 
8.55 

1.66 
.83 
17.20 

Coal 

2  74 

Factory  expense  

3.75 

6.75 

Total  per  ton  

37.83 

80.29 

The  company  states  that  pulp  is  selling  in  the  market  for  $10  to 
$20  per  ton  less  than  their  cost  of  product,  and  their  mill  lost  about 
$100,000  in  1921.  The  direct  labor  cost  to  the  mill  on  pulp  is  about 
22  per  cent  of  its  entire  cost  and  the  indirect  labor  cost  is  nearly 
50  per  cent  of  the  entire  product,  as  that  is  the  cost  of  the  princi- 
pal raw  material,  which  is  wood.  The  labor  is  therefore  72  per  cent 
of  the  total  cost. 

Hearings :  Pages  4540-4542. 

Witness :  Mr.  H.  H.  Bishop,  representing  the  Pulp  Manufacturers' 
Association,  New  York  City. 

Size  of  industry. — The  daily  capacity  for  manufacturing  wrood 
pulp  in  the  United  States,  as  of  January  1,  1922,  is  about  8,000  tons 
mechanical,  9,300  tons  chemical.  The  1920  production,  totaling 
4,700,000  tons,  is  recognized  by  everybody  as  abnormally  large.  It 
may  be  fairly  assumed  that  normal  production  and  importation  is 
about  4,000,000  tons.  Attention  is  directed  to  the  fact,  shown  by 
these  figures,  that  to  the  extent  pulp  is  imported  domestic  mills  and 
employees  are  denied  the  opportunities  which  should  be  theirs. 


562  DIGEST  OF   TARIFF    HEARINGS,   H.   R.    7456. 

Comparability. — An  alarming  feature  is  found  in  the  importation 
of  570,000  tons  of  pulp  in  the  year  1921,  this  being  made  possible  by 
the  depreciation  in  the  value  of  foreign  currencies. 

Rates  suggested. — On  mechanical  pulp,  one-tenth  of  1  cent  per 
pound  dry  weight.  On  unbleached  chemical  pulp,  two-tenths  of  1 
cent  per  pound  dry  weight ;  on  bleached  chemical  pulp,  three-tenths 
of  1  cent  per  pound  dry  weight.  It  is  also  urged  that,  in  addition 
to  these  specific  duties,  some  special  provision  be  made  to  give  addi- 
tional protection  against  the  competition  of  countries  having  debased 
currences. 

Hearings :  Pages  4522-4523. 

Witness:  Mr.  A.  C.  Goodyear,  representing  the  Bogalusa  Paper 
Co.,  Buffalo,  N.  Y.,  and  several  manufacturers  of  chemical  wood 


lates  suggested. — The  object  of  the  witness's  appearance  was  to 
ask  for  such  a  change  in  paragraph  1610  as  would  provide  for  a  duty 
of  six-tenths  of  a  cent  a  pound  on  unbleached  pulp  and  1  cent  a 
pound  on  bleached  pulp,  with,  in  each  case,  5  per  cent  ad  valorem 
based  on  American  valuation.  This  duty  to  apply  only  to  chemical, 
as  distinguished  from  ground  wood  pulp. 

It  is  urged  that  the  chemical-pulp  industry  faces  the  most  serious 
situation  in  its  history.  Manufacturing  costs  in  the  United  States 
are  so  far  in  excess  of  foreign  that  competition  is  out  of  the  ques- 
tion. Already  American  mills  are  running  at  a  heavy  loss  to  fur- 
nish work  for  their  married  employees.  Foreign  pulp  is  for  sale  in 
New  York  at  $10  to  $20  per  ton  less  than  the  cost  of  manufacture 
in  American  mills.  Tabulations  submitted  lead  up  to  the*  statement 
that  "American  chemical  pulp  mills  are  competing  with  labor  paid 
one-tenth  of  the  American  wage." 

Witinesses:  The  West  Virginia  Pulp  &  Paper  Co..  and  chemical 
fiber  manufacturers  from  different  sections  of  the  United  States. 
(Briefs;  no  appearance  at  hearings.) 

Costs  and  selling  prices. — Chemical  fibers  are  now  (August,  1921) 
being  offered  on  the  American  markets  at  the  following  prices  per 
pound,  delivered  at  New  York  or  other  Atlantic  ports  of  entry : 

Sulphate,  2.25  cents. 
Unbleached  sulphite,  2.75  cents. 
Bleached  sulphite,  3.50  to  4  cents. 

American  manufacturers  can  not  meet  these  prices,  which  are  far 
below  the  present  replacement  value  of  the  raw  material  content 
alone. 

Size  of  industry. — The  chemical-fiber  industry  in  the  United  States 
is  one  of  the  basic  industries.  Over  $350,00d,000  capital  is  employed 
in  it,  and  over  25,000  workmen  are  directly,  and  as  many  more 
indirectly,  employed.  These  include  thousands  of  farmers  who  cut 
pulp  wood  in  their  off  seasons. 

Comparability. — Manufacturers  do  not  object  to  chemical  fiber 
coming  into  America  from  Canada,  or  any  other  country,  free  of 
duty,  so  long  as  the  rates  of  exchange  are  nearly  the  same.  The 
principal  foreign  pulp-producing  countries  are  Germany,  Austria, 
Czechoslovakia,  Finland,  Norway,  and  Sweden.  All  of  these  have 
large  holdings  of  forest  lands,  except  Germany,  whose  wood  supply  is 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  563 

obtained  from  Russia,  Finland,  and  Austria.  The  cost  of  produc- 
tion of  chemical  fibers  in  these  European  countries,  particularly 
Austria,  Germany,  and  Finland,  is  very  much  lower  than  in  Amer- 
ica. Even  if  the  costs  were  no  lower,  these  countries  now  have  an 
overwhelming  advantage  in  this  market  through  the  demoralized 
condition  of  foreign  exchange.  European  countries  are  erecting 
tariff  walls  to  keep  out  German  imports,  which  they  fear.  England 
is  trying  to  solve  the  difficulty  in  some  other  way.  The  more  ef- 
fective the  means  adopted  by  European  countries.'  the  more  intense 
wrill  be  the  German  competition  for  export  trade  against  the  United 
States.  In  the  manufacture  of  woo%d  pulp,  Germany  has  an  excep- 
tional advantage  because  of  the  cheapness  of  labor  and  raw  mate- 
rials. An  increase  in  exports  of  wood  pulp  by  Germany  to  the 
United  States  will  necessarily  result  in  lower  costs  of  production 
there  and  higher  costs  of  production  here.  The  competition  of  other 
countries  would  be  equally  as  destructive  to  the  American  industry. 
Rates  suggested. — The  interests  represented  feel  that  the  only 
kind  of  relief  which  is  possible  to  obtain  is  something  along  the  lines 
of  the  .enclosed  proposed  amendment  to  H.  R.  7456,  providing  for  a 
compensatory  duty  on  certain  basic  commodities  produced  in  this 
country.  This  duty  is  an  amount  equal  to  the  difference  between  the 
cost  of  production  in  the  United  States  and  the  price  at  which  the 
foreign  goods  are  sold  or  offered  for  sale  in  America.  This  would 
give  domestic  manufacturers  something  like  an  equal  chance  with 
foreign  manufacturers.  The  latter  would  still  have  an  advantage 
if  their  costs  of  production  are  lower  than  the  domestic,  the  only 
means  of  protection  being  to  reduce  domestic  costs.  The  American 
valuation  plan  will  be  of  no  benefit  to  the  domestic  manufacturer  of 
any  commodity  on  the  free  list;  its  application  will  be  limited  to 
ad  valorem  duties. 

Witness:  The  Filer  Fiber  Co.  (Brief;  no  appearance  at  hear- 
ings.) 

Costs  and  selling  prices. — While  it  costs  $60  to-day  (1920)  in 
America  to  produce  a  ton  of  kraft  pulp,  at  low  labor  and  material 
cost  foreign  paper  is  being  sold  in  New  York  at  $40  per  ton,  ex  dock. 
The  freight  on  this  is  $7.20  per  ton,  making  a  total  cost  of  $47.20 
per  net  ton  delivered  in  Michigan.  Domestic  pulp  delivered  in  Mich- 
igan at  $47.20  means  a  net  loss  of  $20  to  $25  per  ton.  The  company 
states  that  if  it  can  not  at  least  secure  cost  out  of  their  production 
by  September,  1920,  they  will  have  to  shut  down  their  mill  for  good. 

Comparability. — The  American  pulp-wood  industry  is  practically 
facing  ruin  because  of  the  foreign  pulp  being  dumped  into  the 
United  States,  solely  because  their  foreign  pulp  manufacturers  must 
secure  money.  The"  various  conversion  paper  makers  take  advantage 
of  the  foreign  pulp  that  is  being  sold  in  the  United  States  and  work 
in  conjunction  with  Xew  York  pulp  brokers,  who  in  turn  import 
chemical  pulps  and  sell  them  to  the  American  consumer. 

Rates  suggested. — The  company  earnestly  urges  that  a  duty  be 
placed  on  foreign  chemical  pulp  coming  from  European  countries, 
which  will  assist  the  pulp  and  paper  industry  throughout  the  United 
/States  as  well  as  Canada.  If  a  duty  were  placed  on  chemical  pulps 
roming  from  Sweden,  Norway,  Finland,  and  Germany,  it  would 
stimulate  the  pulp  and  paper  industry  and  make  it  more  uniform  in 


564  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

price  and  otherwise.  All  of  the  chemical  pulps  come  into  the  United 
States  free  of  duty.  Newspaper  manufacturers  desire  pulp  to  come 
in  free  of  duty  from  Canada,  but  this  does  not  apply  to  European 
countries. 

Witnesses:  Farmers  producing  pulp  wood  in  all  parts  of  the 
United  States  and  manufacturers  of  cnemical  wood  pulp.  (Brief; 
no  appearance  at  hearings.) 

Size  of  industry. — The  chemical-pulp  mills  of  the  United  States 
represent  an  investment  of  many  millions  of  dollars,  give  employ- 
ment to  thousands  of  men  at  high  wages  and,  in  1920,  afforded  a 
market  of  3,713.184  cords  of  domestic  wood  fit  for  no  other  purpose, 
giving  income  to  thousands  of  farmers  and  landowners  for  a  product 
available  in  no  other  market, 

Comparability. — Despite  the  great  sources  of  raw  material  for 
the  chemical  wood-pulp  industry  in  America  and  the  capital  in- 
vested. Americans  are  condemned  to  stand  idle  and  watch  the  wood- 
pulp  industry  follow  the  mechanical  pulp  industry  into  Canada, 
where  lower  manufacturing  costs  lure  American  capital  by  offering 
large  profits  for  the  time  being.  The  labor  which  Americans  could 
supply  is  bought  in  foreign  markets,  in  Germany,  Finland,  Canada, 
Sweden,  and  Norway.  The  raw  materials  which  Americans  could 
supply  are  bought  in  the  same  markets.  Germany.  Finland,  and 
Scandinavia  are  throwing  thousands  of  tons  of  chemical  wood  pulp 
into  the  disorganized  American  market,  selling  at  a  price  of  30  to 
50  per  cent  higher  than  they  ask  in  the  foreign  home  markets. 

Rates  suggested. — The  interests  represented  desire  that  a  duty  of 
1  cent  per  pound  be  placed  on  bleached  chemical  pulp  and  6  cents 
per  pound  on  unbleached.  These  duties  are  asked  because  50  to 
60  per  cent  of  the  cost  is  labor  and  the*  wages  of  labor  used  in  the 
manufacture  are  higher  in  America  than  in  foreign  countries;  also 
because  chemical  wood  pulp  production  turns  a  raw  material,  other- 
wise worthless  and  unmarketable,  into  a  valuable  product  and  in- 
creases the  area  and  value  of  tillable  land.  Foreigners  can  export 
free  to  America,  but  American  manufacturers  enjoy  no  reciprocal 
advantage.  The  duty  suggested  would  give  a  revenue  to  the  United 
States  of  from  $3.000,000  to  $5.000,000  per  year— a  revenue  which 
would  not  come  from  the  consumer  but  be  paid  by  the  foreign  pro- 
ducer. It  would  protect  the  American  producer  from  unhealthy 
competition.  American  production  fixes  the  price  of  chemical  pulp 
in  America. 

Remarks. — There  is  enough  wood  standing  and  growing  in  the 
United  States  to  maintain  the  chemical-pulp  industry  in  perpetuity. 
Eliminating  saw  timber  land,  there  are  in  the  United  States 
132.859,000  acres  of  land  adapted  for  nothing  but  the  production  of 
pulp  wood.  This  land  has  now  on  it  standing  pulp  wood  estimated 
at  707,350,000  cords,  a  supply  for  nearly  two  centuries.  The  pulp 
mills  can  utilize  all  waste  wood  left  over  from  the  sawmills. 

Witness:  The  Book' Paper  Manufacturers'  Association.  (Brief; 
no  appearance  at  hearings.) 

Size  of  industry. — The  1920  production  of  the  entire  book-paper 
industry  was  approximately  1,100,000  tons,  valued  at  $220,000,000. 
The  number  of  wage  earners  was  about  22,000.  The  total  wood  pulp 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  565 

produced  in  the  United  States  in  1920  was  3.799,835  tons,  of  which 
2.054,253  tons  were  used  by  the  domestic  pulp  mills  themselves,  the 
remaining  1.745,582  tons  being  available  for  the  converting  mills. 
The  wood  pulp  imported  by  the  converting  mills  in  1920  was  906,078 
tons. 

Rates  suggested. — The  association  protests  against  a  duty  on  wood 
pulp.  Any  such  duty  places  the  converting  mills  at  a  disadvantage 
in  competition  with  those  producing  their  own  pulp  and  not  depend- 
ent on  the  foreign  supply.  The  Canadian  Government  is  looking 
toward  an  export  duty  on  wood  products  as  a  source  of  necessary 
revenue.  If  a  considerable  export  duty  is  put  on  wood  pulp  by 
Canada  and- there  is  also  an  import  duty  placed  on  it  by  the  United 
States  the  price  to  the  consumer  of  wood  pulp  will  be  unfairly  high. 
Members  of  the  association  are  adjusting  themselves  to  the  new 
economic  conditions,  and  by  every  effort  possible  have  reduced,  and 
are  reducing  their  costs  so  as  to  quote  lower  prices  for  their  finished 
product  to  the  consumer.  An  import  duty  on  wood  pulp  would  tend 
toward  maintaining  or  increasing  the  high  cost  of -book  paper.  As 
such  it  would  be  a  tax  on  education  and  should  be  discouraged. 

Hearings :  Pages  4518-4519. 

Witness:  Mr.  Peter  G.  Thomson,  representing  the  Miami  Valley 
Paper  Manufacturers'  Association.  (Brief.) 

Size  of  industry. — The  association  represents  19  paper  mills  located 
between  Cincinnati,  Dayton,  and  Chillicothe,  Ohio,  having  a  com- 
bined annual  output  of  473,000  tons,  or  about  10  per  cent  of  all  the 
paper  produced  in  the  United  States,  exclusive  of  newsprint. 

Rates  suggested. — The  members  of  the  association  are  convinced 
that  the  wood-pulp  industry  does  not  require  protection.  The  united 
capacity  of  the  domestic  pulp  mills  is  insufficient  for  any  extensive 
period,  owing  to  the  limitation  of  a  diminishing  wood  supply.  The 
dependence  upon  foreign  forests  is  increasing  yearly  and  there  is  no 
prospect  of  reducing  the  amount  of  pulp  used.  While  thus  favoring 
the  retention  of  wood  pulp  on  the  free  list,  the  association  requests 
that  an  equivalent  duty  be  placed  on  imported  finished  paper  in  the 
event  of  a  duty  on  wood  pulp  being  decided  upon. 

Hearings :  Pages  4519^522, 

Witness:  Mr.  Frank  C.  Overton,  representing  the  Association  of 
American  Wood  Pulp  Importers.  (Brief.) 

Size  of  industry. — The  need  of  protection  for  the  wood-pulp  in- 
dustry is  denied,  the  witness  maintaining  that  the  industry  in  this 
country  has  been  developed  to  its  utmost  capacity,  the  diminishing 
supply  of  wood  being  an  effective  limitation.  This  being  so.  paper 
manufacturers  are  bound  to  obtain  a  portion  of  their  supplies  from 
abroad — a  factor  also  favoring  the  conservation  of  domestic  growths 
for  future  generations.  When  so  much  is  being  done  by  govern- 
mental agencies  in  the  latter  direction,  would  it  not  be  inconsistent 
for  Congress  to  take  wood  pulp  from  the  free  list?  The  percentage 
of  foreign  wood  required  by  the  industry  must,  indeed,  increase  as 
time  goes  on. 

Taking  into  account  the  146  American  mills  manufacturing  chemi- 
cal pulp,  of  which  only  15  manufacture  pulp  exclusively  for  sale,  the 
product  is  the  raw  material  of  about  600  paper  mills  which  do  not 
77134—22 37 


566  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

make  pulp.  It  is  obvious,  therefore,  that  the  paper  manufacturers 
who  buy  pulp  employ  in  the  aggregate  a  vastly  greater  number  of 
workmen  than  do  the  mills  manufacturing  pulp  and  that  a  tariff  on 
pulp  would  discriminate  against  75  per  cent  of  the  paper  makers 
in  the  United  States.  The  effect  of  such  a  tariff  upon  the  public 
must  also  be  borne  in  mind;  paper,  in  all  its  multitudinous  uses, 
would  be  increased  in  price,  to  the  detriment  of  every  member  of  the 
community. 

PARAGRAPH  1614. — VANADIUM. 


FAVORING  HIGHER  DUTIES  : 

The  Colorado  Vanadium  Corporation,  New  York.     (Brief;  no  appearance 
at  hearings.) 

Rates  suggested. — Statistics  are  quoted  from  the  United  States 
Geological  Survey  as  to  the  metallic  vanadium  content  of  vanadium 
ores  produced  in  the  United  States  from  1912  to  1918,  inclusive.  The 
figures  indicate  that  during  the  period  mentioned  the  vanadium  con- 
tent of  domestic  ores  was  3,031  tons,  as  compared  with  3,392  tons 
from  Peru.  Since  the  domestic  production  almost  equals  the  im- 
ports, it  is  urged  that  vanadium  ore  be  made  dutiable  in  order  to 
foster  the  development  of  resources  in  Colorado,  Arizona,  Utah,  and 
New  Mexico. 

PARAGRAPH  1620.— COPRA. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  A.  M.  Loomis,  representing  the  National  Dairy  Union.          , 
FAVORING  PROPOSED  DUTIES  : 

Mr.  G.  H.  Gillespie,  representing  the  Vegetable  Oil  Corporation,  Berkeley, 

Calif. 

Mr.  J.  L.  Berrickx,  representing  the  Gorgas  Pierie  Manufacturing  Co.,  Phila- 
delphia, Pa. 
The  American  Nut  &  Seed  Oil  Corporation.     (Brief.) 

Hearings :  Pages  1174-1183  of  Schedule  1. 

Witness:  Mr.  A.  M.  Loomis,  representing  the  National  Dairy 
Union. 

Robes  suggested. — That  copra  be  taken  off  the  free  list  and  made 
dutiable  at  not  less  than  5  cents  per  pound. 

Hearings:  Pages  4542-4554. 

Witness :  Mr.  S.  H.  Gillespie,  vice  president  and  managing  director 
Vegetable  Oil  Corporation,  Berkeley,  Calif. 

Selling  price  and  costs. — The  cost  of  copra  to-day  is  about  4J 
cents  per  pound  landed  at  the  Pacific  coast;  the  price  for  oil  is 
7f  cents.  There  is  only  60  per  cent  oil  in  copra. 

Size  of  industry. — In  1920  there  were  218,000,000  pounds  of  copra 
imported  into  the  United  States,  of  which  only  7  per  cent  came 
from  the  Philippine  Islands,  compared  with  70  per  cent  in  1912. 
The  capital  invested  in  the  domestic  copra  crushing  industry  is 
more  than  $12,000,000. 

Rates  suggested. — Free. 


DIGEST  OF  TAEIFF  HEARINGS,  H.  K.  7456.  567 

Remarks.  —  About  one-half  the  copra  used  is  imported  in 
American  ships  which  would  lose  this  business  if  a  duty  were  im- 
posed. Of  the  oils  and  fats  used  in  lard  substitutes  in  1919,  only 
1.1  per  cent  of  the  total  amount  was  coconut  oil.  In  the  manufac- 
ture of  filled  milk  from  skimmed  milk  and  coconut  oil,  only  about 
3,400,000  pounds  of  coconut  oil  were  used  in  1920  out  of  a  total 
consumption  of  several  hundred  million  pounds  of  oil.  The  com- 
petition with  filled  milk  compensates  the  dairymen  producing  whole 
milk  by  broadening  the  market  for  the  large  amount  of  skimmed 
milk  produced  and  which  is  thereby  enhanced  in  value. 

Hearings :  Pages  4554-4558. 

Witness :  Mr.  J.  L.  Berrickx,  representing  the  Gorgas  Pierie  Manu- 
facturing Co.,  Philadelphia,  Pa. 

Size  of  industry. — Normally,  250,000  pounds  of  copra  are  crushed 
in  this  country  annually  for  coconut  oil,  which  is  the  chief  ingredient 
for  many  soaps  with  which  cottonseed  oil  is  used. 

Rates  suggested. — Free'  list. 

Remarks. — If  cottonseed  oil- can  take  the  place  of  coconut  oil  the 
South  will  have  to  grow  two  or  three  million  bales  of  cotton  more 
than  its  normal  crop  to  obtain  the  necessary  seed.  This  would 
tremendously  lower  the  price  of  the  main  crop — cotton.  The  crush- 
ing of  cottonseed  oil  is  a  seasonal  business  which  should  welcome 
copra,  as  the  latter  could  be  crushed  during  the  period  when  cotton- 
seed is  not  available.  If  copra  were  embargoed,  margarine  would 
still  be  made  from  the  huge  surplus  of  oleo  oil  and  neutral  lard  now 
exported.  A  duty  on  coconut  would  protect  the  crushers  in  the 
Philippine  Islands,  who  would  send  coconut  oil  to  this  country  be- 
cause they  are  able  to  outbid  United  States'  crushers  by  at  least  $15 
per  ton  of  copra.  Consequently,  a  duty  on  copra  would  bar  importa- 
tion of  this  material  in  the  United  States  and  cause  the  closing  down 
of  copra  crushing  mills;  all  coconut  oil  would  be  expressed  in  the 
Philippine  Islands,  while  tremendous  amounts  of  copra  would  be 
diverted  to  Europe  for  crushing,  depriving  this  country  of  a  large 
export  market. 

Witness :  The  American  Nut  &  Seed  Oil  Corporation,  New  York. 
(Brief;  no  appearance  at  hearings.) 
Size  of  industry.— About  $1,000,000  capital  invested. 
Rates  suggested. — Copra  to  be  specifically  retained  on  the  free  list. 

PARAGRAPH  1625. — ESSENTIAL  OIL. 
WITNESS,  AND  INTEREST  REPRESENTED. 

REQUESTING  RECLASSIFICATION  : 

Mr.  Harry  C.  Wright,  representing  the  American  Perfumers'  Association. 

Hearings  :  Pages  1001-1010  of  Schedule  1. 

Rates  suggested. — That  bois  de  rose  and  cananga  be  specifically 
mentioned  in  paragraph  1625.  These  were  omitted  because  bois  de 
rose  was  considered  to  be  identical  with  linaloe  and  cananga  iden- 
tical with  ylang-ylang.  The  association  is  convinced  that  there  is 
such  an  essential  difference  between  these  materials  and  those  to 
which  they  are  related  that  it  would  be  a  serious  error  not  to  men- 
tion them  specifically  in  this  paragraph. 


568  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

PARAGRAPH  1626. — VEGETABLE  OILS. 

WITNESSES.  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

The  Oil  Seeds  Co.,  New  York  City.     (Brief.) 
Mr.  Fred  H.  Lysans,  Seattle,  Wash. 

Mr.  John  Aspegren,  representing  the  Portsmouth  Cotton  Oil  Refining  Cor- 
poration, and  others. 

Mr.  I.  M.  Simmonin,  representing  C.  F.  Simmonin's  Sons,  Philadelphia,  Pa. 
(Brief.) 

Witness:  The  Oil  Seeds  Co.     (Brief;  no  appearance  at  hearings.) 

Rates  suggested. — Copra  should  be  specifically  provided  for  in 
paragraph  1619  (free  list.) 

Coconut  oil :  An  export  tax  is  suggested  on  Philippine  coconut 
oil,  equal  to  the  duty  on  that  oil  from  other  countries. 

Palm-kernel  oil :  2  cents  per  pound,  same  as  coconut  oil. 

Sesame  oil :  24  cents  per  pound. 

Perilla  oil :  2|  cents  per  pound. 

Remarks. — If  it  is  intended  to  have  copra  enter  free,  it  should  be 
specifically  provided  for;  otherwise  it  might  be  held  dutiable  at  1 
cent  per  pound  under  paragraph  755. 

Coconut  oil,  dutiable  at  2  cents  per  pound,  will  enter  almost  en- 
tirely free  from  the  Philippines,  and  domestic  copra  crushers  would 
have  to  compete  against  the  low  costs  there.  An  export  tax  is  sug- 
gested to  remedy  this. 

Palm-kernel  oil  is  a  good  substitute  for  coconut  oil  and  should  be 
dutiable  at  the  same  rate. 

Sesame  oil  is  a  good  substitute  for  cottonseed  and  peanut  oils  and 
should  bear  a  duty. 

Perilla  oil  is  a  drying  oil  similar  to  linseed  oil,  and  should  bear  the 
same  rate  of  duty. 

Witness:  Mr.  Fred  H.  Lysans,  Seattle,  Wash.  (Brief;  no  appear- 
ance at  hearings.) 

Remarks. — The  imposition  of  a  substantial  duty  on  oriental  wood 
and  vegetable  oils,  and  the  admission  duty  free  of  the  raw  materials 
from  which  they  come,  would  result  in  transferring  the  immense 
oil-crushing  business  of  the  Orient  to  the  United  States,  where  more 
advanced  methods  would  give  higher  oil  yields.  In  addition,  five 
industries  would  be  established  here,  i.  e..  wood  oil,  fine  potash, 
apetic  acid,  carbon  black  (all  by-products  of  Chinese  wood-oil  crush- 
ing and  refining),  and  casein,  a  by-product  of  the  soya  bean. 

Hearings :  Pages  4563-4567. 

Witness :  Mr.  John  Aspegren,  representing  the  Portsmouth  Cotton 
Oil  Eefining  Corporation  and  others. 

Size  of  industry. — The  Portsmouth  Corporation's  factory  has 
turned  out,  during  the  last  two  years,  over  $20,000.000  worth  of 
manufactured  articles  each  year.  Over  95  per  cent  of  the  business 
of  the  represented  interests  consists  in  crushing  cotton  seed  and 
refining  the  crude  cottonseed  oil  and  making  it  into  high-grade 
finished  products.  With  the  exception  of  peanuts  and  olives,  prac- 
tically all  seeds  are  crushed  and  made  into  oil  and  oil  cake. 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  569 

This  country  exports  oils  and  fats  in  excess,  probably,  of  2,000,000 
barrels  more  than  it  imports.  The  country  produces  more  cotton 
oil  than  the  olive  oil  product  of  the  entire  world.  The  witness,  not 
averse  to  a  protection  for  this  industry  when  the  emergency  tariff 
was  under  consideration  a  year  ago,  now  asks  to  be  protected  against 
this  protection.  Sentiment  has  now  swung  around,  and  not  a  single 
cotton-oil  refiner  is  in  favor  of  protection.  This  revulsion  of  feeling 
has  been  brought  about  by  changes  in  ocean  transportation  during 
the  war.  when  oil  seeds  and  oils  were  rushed  across  to  America  and 
the  finished  products  were  manufactured  here  and  shipped  to  Europe. 
A  large  part  of  what  was  gained  in  this  way  was  retained,  but  the 
passing,  of  the  emergency  tariff  led  to  the  loss  of  the  trade,  which 
is  now  controlled  by  England  and  Holland. 

Rates  suggested.— Free  list.  Protection  for  the  cotton-oil  indus- 
try is  regarded  as  entirely  misapplied  and  as  a  tremendous  detriment 
to  the  country. 

Witness :  Mr.  I.  M.  Simmonin.  representing  C.  F.  Simmonin's 
Sons,  Philadelphia,  Pa.  (Brief;  no  appearance  at  hearings.) 

Remarks. — Attention  is  called  to  the  facts  that  palm  kernel  oil, 
which  can  be  used  to  better  advantage  than  coconut  oil,  is  free  in 
H.  R.  7456,  while  coconut  oil  is  to  bear  a  duty  of  2  cents  per  pound ; 
and  that  sesame  oil,  which  is  superior  to  peanut  oil,  is  free,  while 
peanut  oil  is  dutiable  at  2  cents  per  pound.  As  these  defects  will 
result  in  a  large  increase  of  importations  of  these  free  oils,  a  remedy 
for  them  is  requested. 

PARAGRAPH  1626. — CHINESE  WOOD  OIL,. 
WITNESS.  AND  INTEREST  REPRESENTED. 

FAVOKING  PROPOSED  DUTIES  : 

Mr.  Arthur  Davis,  president  Standard  Varnish  Co.,  New  York  City. 

Hearings :  Pages  4570-4575. 

Size  of  industry. — There  are  about  350  varnish  manufacturers  in 
the  United  States,  doing  their  best  to  develop  export  business. 

Rates  suggested. — Free. 

Remarks. — In  a  brief  submitted  by  the  witness,  it  is  stated  that 
Chinese  tung  oil,  or  China  wood  oil.  is  not  produced  commercially  in 
the  United  States,  and  is  not  a  substitute  for  linseed  oil.  In  *  the 
varnish  industry  it  is  used  with  American  gums  and  rosin,  the  con- 
sumption of  the  latter  representing  about  30  per  cent  of  the  domestic 
rosin  production.  Rosin  can  not  be  used  with  linseed  oil.  There  is 
no  duty  on  China  wood  oil  into  Great  Britain  or  Canada,  conse- 
quently, the  domestic  industry'would  be  unable  to  compete  with  these 
countries  in  the  markets  of  the  world,  to  which  supplies  would  be 
diverted  should  there  be  a  tax  on  the  oil.  There  are  heavy  American 
investments  in  tanks  and  facilities  in  China  for  handling  China 
wood  oil.  A  tariff  on  China  wood  oil  would  not  produce  a  large 
revenue,  owing  to  a  decrease  in  imports.  The  varnish  industry  would 
be  forced  to  use  inferior  materials. 


570  DIGEST  OF  TARIFF  HEARINGS,  H.  K.  7456. 

PARAGRAPH  1626. — INEDIBLE  OLIVE  OIL. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  A.  M.  Burkhardt,  representing  the  Palm  Olive  Co.,  of  Milwaukee,  Wis. 

Hearings :  Pages  4568-4569. 

Size  of  industry. — In  1920  imports  of  inedible  olive  oil  were  8,600,- 
000  pounds  and  in  1921  (10  months),  12,032,875  pounds,  of  which 
latter  amount  this  concern  used  43.98  per  cent  of  the  entire  importa- 
tion. 

Rates  suggested. — Free  list. 

Remarks. — There  is  no  domestic  production  of  olive  oil  foots — soap 
makers'  material.  In  1918,  when  the  Italians  embargoed  the  exporta- 
tion of  this  material,  it  was  necessary  to  bring  in  soap  made  of  olive- 
oil  foots  from  which  the  glycerin  had  been  recovered  prior  to  ex- 
portation. 

The  California  output  is  for  edible  purposes,  and  the  highest  pro- 
duction in  any  year  has  been  200,000  gallons.  Olive  oil  foots  is  nec- 
essary for  the  manufacture  of  this  company's  soap,  which  is  nation- 
ally advertised,  emphasizing  the  fact  that  olive  oil  is  used. 

PARAGRAPH  1626. — PALM  AND  PALM-KERNEL  OIL. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  Walter  T.  Hathaway,  manager  of  purchasing  department,  Colgate  & 
Co.,  Jersey  City. 

Hearings :  Pages  4558-4563. 

Size  of  industry. — Imports  of  palm  oil  were  9,640  short  tons  in 
1919,  having  decreased  from  20,310  tons  in  1916.  In  1917  there  were 
consumed  by  the  soap  industry  27,345,000  pounds  of  palm  oil,  and 
about  10,000,000  pounds  was  consumed  annually  in  the  tin-plate  in- 
dustry. In  1917  the  soap  industry  consumed  4,762,000  pounds  of 
palm-kernel  oil,  6,417,000  pounds  of  Chinese  vegetable  tallow,  and 
5,000  pounds  of  sesame  oil. 

Rates  suggested. — Free  list. 

Remarks. — Palm  oil  and  palm-kernel  oil  are  particularly  suited 
for  the  manufacture  of  soap.  The  industry  can  not  afford  to  pay 
more  than  international  prices  on  these  oils.  As  there  is  no  palm 
industry  in  America,  and  there  can  be  none,  palm  oil  is  competitive 
with  no  vegetable  oil  of  domestic  production.  The  same  remarks 
apply  to  palm-kernel  oil,  sesame  oil,  and  vegetable  tallow. 

PARAGRAPH  1627. — LUBRICATING  OILS  AND  GREASES. 


FAVORING  PROPOSED  DUTIES  : 

The  Harold  Newlin  Hill  Co.,  Philadelphia,  Pa.     (Brief;  no  appearance  at 
hearings.) 

Rates  suggested. — Lubricating  oil  and  grease,  containing  petroleum 
as  the  article  of  chief  value.     Free  list. 


DIGEST   OF   TAKIFF    HEARINGS,   H.   R.   7456.  571 

Remarks. — The  petroleum  industry  needs  no  protection.  Only  a 
small  amount  of  lubricating  oils  and  greases,  of  high  quality  and  for 
special  purposes,  is  imported.  As  lubricating  oils  and  greases  are 
absolutely  essential  to  existence,  their  being  placed  on  the' free  list 
would  not  be  harmful. 

PARAGRAPH  1627. — PETROLEUM. 

(See  also  Paragraph  1603,  Asphalt.) 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

United  States  Senator  John  W.  Harreld,  of  Oklahoma. 

Mr.  Harry  M.  Smith,  representing  Mid-Continent  Oil  and  Gas  Association. 
Mr  W.  H.  Gray,  representing  Oklahoma  Oil  Men's  Protective  Association. 
The  Okmulgee  District  Oil  and  Gas  Association,  Okmulgee,  Okla. 

FAVORING  PROPOSED  DUTIES: 

The  Okmulgee  District  Oil  and  Gas  Association,  Okmulgee,  Okla. 

Mr.  J.  R.  Draney,  representing  the  Asphalt  Association,  New  York  City. 

Mr.  Stephen  Fleming,  representing  the  phosphate  miners  of  Florida. 

Mr.  M.  O.  Eldridge,  representing  the  American  Automobile  Association, 
Washington,  D.  C. 

Mr.  M.  J.  Murphy,  representing  the  Island  Oil  &  Transport  Corporation, 
New  York  City. 

Mr.  M.  ,T.  Spillman,  Washington.  D.  C. 

Mr.  J.  B.  Klumpp,  representing  the  American  Gas  Association,  Philade}- 
phia.  Pa. 

Mr.  James  L.  Ackerson.  representing  the  Atlantic  Coast  Shipbuilding  Asso- 
ciation, Philadelphia,  Pa. 

Mr.  C.  H.  McDowell,  representing  the  National  Fertilizer  Association. 
(Brief.) 

The  Headley  Good  Roads  Co..  Philadelphia,  Pa.     (Brief.) 

Hearings :  Pages  4575-4594. 

Witness:  United  States  Senator  John  W.  Harreld,  of  Oklahoma. 

Rates  suggested. — Thirty-five  cents  per  barrel  on  crude  oil;  25 
cents  per  barrel  on  fuel  oil. 

Remarks. — The  witness  referred  to  his  speech  of  August  23,  1921, 
in  the  Senate,  in  which  he  had  urged  protection  for  the  21,000  inde- 
pendent refiners  of  petroleum  by  the  enactment  of  a  duty  on  crude 
oil.  Such  action  would  prevent  monopolistic  interests  from  dumping 
quantities  of  Mexican  oil  on  the  market  to  break  the  independent 
producers  and  then  buying  out  the  latter  at  low  prices. 

(Note. — These  18  pages  are  largely  taken  up  by  a  controversy  be- 
tween the  witness  and  Mr.  Herbert  G.  Wylie,  representing  the  Pan- 
American  Petroleum  &  Transport  Co.  The  contribution  of  the  for- 
mer is  a  reprint  of  the  speech  referred  to  above,  discussing  at  length 
the  steps  taken  by  other  countries  in  this  field  and  criticizing  the 
actions  of  persons  connected  with  the  Pan- American  Co. 

Mr.  Wylie's  contribution,  in  reply  to  the  speech,  defends  the 
action  of  oil  companies  alleged  by  Senator  Harreld  to  be  un-Ameri- 
can in  character.) 

Hearings :  Pages  4594-4648. 

Witness:  Mr.  Harry  M.  Smith,  secretary  the  Mid-Continent  Oil 
&  Gas  Association. 

Costs  and  selling  prices. —The  present  average  cost  of  producing 
Mid-Continent  oil  is  about  $1.40  to  $1.50  per  barrel,  compared  with 


572  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

$1.75  in  the  spring  of  1921.  The  present  selling  price  is  $2  per  bar- 
rel, compared  Avith  a  low  price  of  90  cents  to  $1  in  June  and  July,  1921. 
Mexican  crude,  best  grade,  costs  about  65  cents  per  barrel  (including 
Mexican  export  tax)  at  Gulf  ports,  and  sells  for  about  $1 ;  but  the 
best  grade  Mexican  oil  contains  not  over  10  per  cent  gasoline, 
whereas  Mid-Continent  oil  contains  30  to  40  per  cent.  By  dumping 
large  quantities  of  Mexican  oil  on  the  American  market,  violent 
fluctuations  in  the  price  of  the  domestic  product  are  produced,  re- 
sulting in  the  selling  of  the  latter  below  cost. 

Size  of  industry. — The  domestic  petroleum  industry  has  a  capital 
investment  of  $3,000,000,000  and  employs  over  1,000,000  workers.' 
The  1920  production  of  crude  oil  was  443,402,600  barrels.  This  fills 
domestic  consumption  needs  and  half  of  the  exports. 

Rates  suggested. — A  rate  of  $1  per  barrel  on  crude  oil. 

Remarks. — Protection  is  desired  as  a  conservation  measure.  A 
flood  of  foreign  oil  would  cause  a  shutdown  of  those  wells  producing 
only  3  or  4  barrels  per  day,  aggregating  40  per  cent  of  the  domestic 
production,  with  the  result  of  an  irrecoverable  loss  of  the  output  of 
these  wells. 

A  countervailing  duty  has  also  been  suggested,  which,  as  pointed 
out  by  the  witness,  would  prevent  the  levying  of  exorbitant  export 
duties  by  foreign  countries.  Without  a  protective  duty  the  inde- 
pendent domestic  industry  is  placed  at  the  mercy  of  large  and  con- 
trolling refining  interests. 

Importations  of  crude  oil  from  Mexico  were  106,175,000  barrels  in 
1920,  or  over  100  per  cent  increase  compared  with  1919. 

Hearings :  Pages  4648-4667. 

Witness:  Mr.  W.  H.  Gray,  representing  the  Oklahoma  Oil  Men's 
Protective  Association. 

Rates  suggested. — A  countervailing  duty  equal  to  the  export  and 
import  tariffs  levied  by  foreign  countries  exporting  and  importing 
petroleum  to  and  from  the  United  States.  On  crude  gasoline,  1£ 
cents  per  gallon ;  on  refined  gasoline,  one-half  cent  per  gallon. 

Remarks. — Mexico  levies  an  import  duty  of  $3  per  barrel  on  fuel 
oil.  This  results  in  loss  of  business  to  domestic  refiners,  who  are  on 
that  account  unable  to  compete  in  the  fuel-oil  market  in  Mexico. 

Witness :  The  Okmulgee  District  Oil  and  Gas  Association,  Okmul- 
gee,  Okla.  (Brief;  no  appearance  at  hearings.) 

Remarks. — It  is  contended  that  Standard  Oil  companies,  by  flood- 
ing the  country  with  Mexican  oil,  have  so  reduced  prices  that  they 
have  been  enabled  either  to  buy  out,  at  low  figures,  producing  proper- 
ties developed  by  independent  capital,  or  to  force  them  out  of  busi- 
ness altogether. 

Hearings :  Page  4711. 

Witness :  Mr.  J.  R.  Draney,  representing  the  Asphalt  Association, 
New  York  City. 

Size  of  industry.— Over  68,000,000  square  yards  of  asphalt  type 
pavement  will  be  laid  in  cities  and  on  country  highways  of  the  United 
States  in  1921.  Nearly  60  per  cent  of  the  asphalt  used  in  this  country 
is  derived  from  Mexican  crude  oil,  besides  a  tremendous  volume  of 
liquid  Mexican  asphalt  for  treating  macadam,  dirt,  and  gravel  roads. 
It  is  estimated  that  the  aggregate  tax  on  road  building,  if  the  duty 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  573 

on  oil  becomes  effective,  would  be  $2,500,000  a  year  for  asphalt  used 
from  Mexico. 

Rates  suggested. — Crude  oil  to  be  retained  on  the  free  list. 

Remarks. — It  is  conceded  on  every  hand  that  the  United  States 
road-building  policy  should  be  vigorously  pushed.  Congress,  in  the 
last  six  years,  has  appropriated  many  millions  of  dollars  for  road 
building  under  the  Federal  highway  system.  The  States  are  spend- 
ing millions:  the  counties,  cities,  and  towns  throughout  the  country 
are  all  spending  money  on  roads  and  streets. 

Hearings :  Pages  4672-4679. 

Witness :  Mr.  Stephen  Fleming,  representing  the  phosphate  miners 
of  Florida. 

Size  of  industry. — The  companies  represented  bv  this  association 
normally  consume  from  3,000,000  to  3,285,000  barrels  of  Mexican 
fuel  oil,  which  is  used  in  preference  to  domestic  oil  because  of  a  say- 
ing of  $2.50  per  barrel,  chiefly  in  the  matter  of  freight.  The  Ameri- 
can refineries  were  said  to  have  refused  to  make  bids  to  Mr. 
Fleming's  fertilizer  company,  because  high  freight  rates  prevented 
competition  with  Mexican  oil. 

Rates  suggested. — Free  list. 

Remarks.— The  witness  filed  a  brief  (pp.  4679-4681)  of  Mr.  C.  H. 
McDowell,  president  National  Fertilizer  Association.  The  association 
regards  with  apprehension  the  announced  purpose  of  representa- 
tives of  certain  oil-producing  companies  to  urge  a  tariff  on  imports 
of  crude  oil.  Such  a  step  would,  it  is  urgedj  greatly  increase  the 
cost  of  fertilizer  while  bringing  no  corresponding  benefits  to  domes- 
tic oil  producers. 

Hearings :  Pages  4695-4697. 

Witness:  Mr.  M.  O.  Eldridge,  representing  the  American  Auto- 
mobile Association,  Washington,  D.  C. 

Rates  suggested. — Free  list. 

Remarks. — The  production  of  automobiles  has  increased  mora 
rapidly  than  the  production  of  gasoline.  In  a  few  years  it  will 
therefore  be  necessary  to  purchase  immense  quantities  of  foreign  oil. 
The  users  of  the  automobile,  truck,  tractor,  and  gasoline  stationary 
engine,  now  vital  and  necessary  in  everyday  life,  would  have  to  bear 
additional  costs  if  a  tax  were  placed  on  imported  petroleum. 

Sixty  per  cent  of  the  asphalts  used  in  the  United  States  for  road 
building  and  roofing  purposes  is  imported  from  Mexico.  A  tariff  in 
this  connection  would  not  be  protective,  as  there  are  no  native  as- 
phalts of  the  kind  imported  produced  in  this  country,  and  there  is 
no  known  source  of  supply. 

Hearings :  Pages  4681^693. 

Witness :  Mr.  M.  J.  Murphy,  representing  the  Island  Oil  &  Trans- 
port Co.,  of  New  York  City.  " 

Suggested  rates. — Free  list. 

Remarks. — Eighty-four  per  cent  of  the  oil  imported  to  the  United 
States  from  Mexico"  in  October,  1921,  was  by  American  concerns,  of 
which  the  Island  Oil  &"  Transport  Co.  is  one.  Of  this  amount  only 
18.75  per  cent  was  shipped  by  the  so-called  Standard  Oil  subsidiaries. 
A  tariff  on  oil  will  encourage  the  building  of  refineries  in  foreign 
countries,  to  the  detriment  of  our  refining  industry,  and  to  divert 
imports  of  fuel  oil  to  the  free  markets  of  the  world. 


574  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    1456. 

The  interests  of  the  farmers  who  own  400,000  tractors  and  2,500,000 
stationary  engines,  8,000,000  owners  of  automobiles,  46,000,000  con- 
sumers of  manufactured  gas,  of  the  railroads,  of  our  merchant  ma- 
rine, and  of  the  United  States  Navy  are  opposed  to  a  tariff  on  crude 
oil. 

Hearings :  Pages  469^4695. 

Witness:  Mr.  J.  W.  Spillman,  Washington,  D.  C.,  representing 
himself. 

Rates  suggested. — Free  list. 

Remarks. — The  American  farmer,  consuming  about  1.337,000,000 
gallons  of  gasoline  annually,  is  vitally  interested  in  lower  prices  and 
in  the  ultimate  saving  for  the  future  of  the  domestic  product ;  also, 
the  manufacture  of  numerous  products  needed  by  the  farmer  is  de- 
pendent upon  petroleum.  These  include  medicines,  dyes,  paints,  and 
varnishes,  roofing,  road  construction,  lubricating  oils"  for  machinery 
of  all  kinds,  gaslight,  and  gas  fuel.  He  is  therefore  opposed  to  a 
tariff  on  crude  oil. 

Hearings:  Pages  4697-4705. 

Witness:  Mr.  J.  B.  Klumpp,  representing  the  American  Gas 
Association,  Philadelphia,  Pa. 

Size  of  industry. — -Petroleum  or  its  products  is  used  in  about  65 
per  cent  of  all  the  manufactured  gas  used  in  the  United  States, 
amounting  to  160,000,000,000  cubic  feet  annually.  Over  24,000,000 
barrels  of  oil  are  thus  consumed.  The  Atlantic  seaboard  companies 
use  about  60  per  cent  of  this,  all  delivered  by  water  from  fields  other 
than  the  Mid- Continent. 

Rates  suggested. — Free  list. 

Remarks. — A  duty  of  $1  per  barrel  on  petroleum  would  increase 
the  price  of  gas  by  12  to  15  cents  per  thousand  cubic  feet,  or  a  total 
of  $25,000,000  yearly.  A  duty  of  35  cents  would  increase  the  cost 
about  5  cents.  Coal  gas  plants  require  double  the  capital  invest- 
ment of  water  gas  plants,  and  their  present  rate  of  increase,  though 
rapid,  hardly  meets  the  increasing  demand  for  gas. 

Hearings:  Page  4712. 

Witness :  Mr.  James  L.  Ackerson,  representing  the  Atlantic  Coast 
Shipbuilding  Association,  Philadelphia,  Pa. 

Size  of  industry. — Seventeen  hundred  vessels,  flying  the  United 
States  flag,  or  62  per  cent  of  the  United  States  merchant  marine,  are 
oil  burning  and  burn  annually  40,000,000  gallons  of  oil. 

Rates  suggested. — Free  list. 

Remarks. — A  tax  of  25  cents  per  barrel  would  mean  about  $10.- 
000,000  extra  cost;  a  standard  10,000-ton  ship,  burning  about  215 
barrels  per  day,  would  cost  $52  more  to  operate  daily.  A  large  liner 
would  cost  $10,000  more  to  operate  on  one  Atlantic  round  trip. 

Hearings :  Pages  4679-4681. 

Witness:  Mr.  C.  H.  MacDowell,  representing  the  National  Fer- 
tilizer Association.  (Brief.) 

The  brief  expresses  the  apprehension  witk  which  the  association 
regards  the  announced  purpose  of  certain  oil-producing  companies 
to  urge  a  tariff  duty  on  imports  of  crude  oil.  The  association  believes 
industry  in  general  to  be  in  no  position  to  take  on  unnecessary  addi- 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  575 

tional  taxation.  To  the  fertilizer  industry  in  particular,  struggling 
as  it  is  out  of  a  period  of  unparalleled  depression,  the  burden  of  a 
tariff  duty  on  oil  would  be  disturbing  and  discouraging. 

Many  of  the  large  plants  on  the  Atlantic  seaboard  depend  upon 
Mexican  fuel  oil  for  power.  Phosphate  rock,  the  principal  ingre- 
dient of  commercial  fertilizer,  comes  mainly  from  Florida,  where  all 
the  mines  use  Mexican  crude  oil  for  fuel.  The  oil  consumption  of 
one  company,  running  at  full  capacity,  is  stated  to  be  about  35,000 
barrels  monthly,  or  at  the  rate  of  1-fo  barrels  for  each  ton  of  rock- 
phosphate  rock  product.  The  introduction  of  fuel  oil  greatly  stimu- 
lated the  business  of  Mexican  export  oil. 

Rates  suggested. — It  is  submitted  that  a  tariff  duty  on  crude  oil 
would  greatly  increase  the  cost  of  fertilizers  without  bringing  any 
corresponding  benefits  vto  domestic  oil  producers.  Crude  oil  should 
remain  on  the  free  list. 

Witness :  The  Headley  Good  Roads  Co.,  Philadelphia,  Pa.  (Brief ; 
no  appearance  at  hearings.) 

Costs  and  selling  prices. — Immense  quantities  of  Mexican  petro- 
leum are  used  to  make  asphalt  for  roads.  The  proposed  duty  would 
increase  the  cost  of  highways  to  the  extent  of  $2  per  ton  of  asphalt 
used.  The  only  domestic  petroleum  suitable  for  road  asphalt  is  the 
California,  which  is  not  available  to  eastern  markets. 

Rates  suggested. — Free  list. 

PARAGRAPH  .  1627.— FUEL  OIL. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  Samuel  Powell,  Providence,  R.  I.,  representing  certain  New  England 

interests. 
Mr.  D.  A.  Welch,  representing  the  copper  producers  of  the  southwestern 

district  of  the  United  States. 
Mr.  L.  G.  Huntley,  Lawton,  Okla.     (Brief.) 
The  Commonwealth  of  Massachusetts.     (Brief.) 
The  New -Cornelia  Copper  Co.,  Calumet,  Mich.     (Brief.) 
Mr.    Alfred    P.    Thorn,    general   Counsel    of    the    Association    of    Railway 

Executives. 

Hearings :  Pages  4706-4710. 

Witness:  Mr.  Samuel  Powell,  representing  certain  firms,  indi- 
viduals, and  associations  in  New  England. 

Size  of  industry. — A  duty  on  crude  oil  is  protested  by  Mr.  Powell 
in  behalf  of  over  280  firms,  individuals,  and  associations  which  he 
represents,  using  over  200,000,000  gallons  of  fuel  oil  annually;  the> 
would  be  obliged  to  pay  higher  prices  for  oil  if  a  duty  were  imposed. 

Rates  suggested. — Free  list. 

Remarks. — The  witness  submitted  a  partial  list  of  buildings,  cover- 
ing about  380  structures,  in  which  interests  represented  by  him  have 
installed  fuel-oil  burning  equipment  and  to  which  they  supply  fuel 
oil. 

Hearings :  Pages  4713-4715. 

Witness:  Mr.  D.  A.  Welch,  representing  the  copper  producers  of 
the  southwestern  district  of  the  United  States. 

Size  of  industry. — The  copper  producers  of  the  southwestern  dis- 
trict of  the  United  States  produce  normally  800,000,000  pounds  of 


576  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

copper  per  year,  and  employ  33.000  men.  They  consume  4.500,000 
barrels  of  oil  per  year.  At  present  the  industry  is  closed  down. 
While  labor  and  materials  are  still  high,  copper  sells  at  present  for 
nearly  prewar  prices. 

Rates  suggested. — Free  list.     No  tariff  on  copper  is  desired. 

Remarks. — The  proposed  tax  on  crude  oil  would  increase  the  cost 
$1.250,000  per  year  to  the  copper  industry  in  the  Southwest.  Cop- 
per refined  by  using  oil  as  a  fuel  is  superior  to  that  obtained  by  us- 
ing coal.  All  of  me  southwestern  copper  for  export  is  refined  on 
the  Atlantic  seaboard,  where  fuel  oil  is  used  as  a  fuel  in  refining, 
and  in  generating  power. 

Witness:  Mr.  L.  G.  Huntley,  Lawton.  Okla.  (Brief;  no  appear- 
ance at  hearings.) 

Costs  and  selling  prices. — It  is  quite  possible  to  operate  profitably 
small  pumping  wells  at  60  cents  per  barrel ;  tne  witness  is  interested 
in  several  such  properties. 

Rates  suggested. — Free  list. 

Remarks. — The  true  cause  of  the  agitation  for  a  duty  on  oil  is  not 
the  flood  of  imports  of  Mexican  oil.  but  the  general  shutdown  of 
industry  and  commerce.  The  low  prices  for  crude  oil  are  primarily 
the  result  of  lessened  consumption,  reflected  in  decreased  imports  of 
Mexican  oil. 

Witness:  The  Commonwealth  of  Massachusetts.  (Brief;  no  ap- 
pearance at  hearings.) 

Costs  and  selling  prices. — A  duty  of  25  cents  per  barrel  on  fuel 
oil  and  35  cents  per  barrel  on  crude  mineral  oil,  as  have  been  sug- 
gested, would  add  $5.000,000  to  the  annual  fuel  bill  of  New  England, 
which  is  largely  dependent  upon  outside  sources  for  its  supply  of 
fuel. 

Rates  suggested. — Free  list. 

Remarks. — A  partial  list   of  fuel-oil   users   in   Massachusetts   is 

g'ven.     Mexico  is  the  only  economical  source  of  fuel  oil  for  New 
ngland. 

Witness:  The  New  Cornelia  Copper  Co.,  Calumet.  Mich.  (Brief: 
no  appearance  at  hearings.) 

Rates  suggested. — Free  list. 

Remarks. — Practically  all  of  the  fuel  oil  used  by  the  copper  com- 
panies of  the  Southwest  comes  from  Mexico.  The  freight  rate  in- 
crease per  heat  unit  has  been  greater  in  the  case  of  coal  than  in  oil, 
making  it  more  expensive  to  use  the  former,  which  is  too  expensive 
in  any  case,  and  is  not  as  well  adapted  as  oil  for  copper  smelting. 

Hearings :  Pages  4667-4672. 

Witness :  Mr.  Alfred  P.  Thorn,  general  counsel  of  the  Association 
of  Railway  Executives. 

Size  of  ^industry. — The  railroads  of  the  United  States  consumed 
55,590,783  barrels  of  fuel  oil  in  1920.  chiefly  in  the  Southwestern 
States  and  California. 

Rates  suggested. — Free  list. 

Remarks. — If  the  price  of  fuel  oil  were  raised  by  a  tariff  on  crude 
oil  and  the  railroads  were  compelled  to  rely  on  domestic  supplies, 
they  would  soon  have  to  discontinue  the  use  of  oil  as  a  fuel,  owing  to- 
the  excessive  price.  This  would  compel  the  railroads  to  revert  to 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  577 

coal,  at  a  tremendous  increase  in  operating  expenses  for  hauling  coal 
long  distances,  and  great  expense  in  changing  oil  burners  back  to 
coal  burners.  Experience  has  shown  that  Mid-Continent  producers 
could  not  be  relied  upon  as  a  constant  source  of  available  fuel  on  long- 
term  contracts.  About  half  the  present  railroad  fuel-oil  consumption 
is  Mexican. 

PARAGRAPH  1627. — CRUDE  PETROLEUM  OIL,  AND  PARAGRAPH  1603. — 

ASPHALT. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  LOWER  DUTIES  : 

Mr.  Herbert  Abraham,  representing  the  Prepared  Roofing  Association,  of 
New  York  City. 

Hearings :  Pages  4633-34. 

Size  of  industry. — This  industry  is  carried  on  in  48  factories  in 
the  United  States,  the  production  of  which  represents  70  per  cent  of 
all  types  of  roofs  used  in  this  country.  In  1920,  2,837,500,000  square 
feet  of  asphalt  roofing  and  shingles  were  manufactured.  F6r  these, 
asphalt  derived  from  Mexican  petroleum  is  the  most  suitable,  484,- 
000  tons  having  been  used  in  1920.  A  tax  of  35  cents  per  barrel  on 
crude  oil  would  increase  the  cost  about  $1,685,000  annually,  at  a 
time  when  a  revival  of  the  building  program  is  of  prime  importance 
to  relieve  unemployment  and  reduce  high  rentals. 

Rates  suggested. — Free  list. 

PARAGRAPH  1635. — MURIATE  OF  POTASH,  SULPHATE  or  POTASH,  AND 

KAINITE. 

WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Wilbur  La  Roe,  jr.,  representing  the  United  States  Potash  Producers' 
Association. 

FAVORING  PROPOSED  DUTIES  : 

Mr.   J.   D.  Cameron  Bradley,   representing  the  American  Agricultural   & 

Chemical  Co. 

Mr.  S.  D.  Crenshaw,  representing  the  National  Fertilizer  Association. 
Mr.  M.  A.  Huston,  manager  Soil  and  Crop  Service  of  the  Potash  Syndicate, 

New  York  City. 

Mr.  Walter  L.  Minch,  president  Minch  Bros..  Bridgeton,  N.  J. 
Hon.  John  S.  Benhani,  Member  of  Congress  from  Indiana. 
Dr.  Frank  App,  representing  the  New  Jersey  Federation  of  County  Boards 

of  Agriculture  and  the  New  Jersey  State  Grange. 
Mr.  Charles  McCarthy,  Honolulu,  Hawaii. 

Mr.  T.  C.  Atkeson,  representing  the  National  Grange.     (Brief.) 
The  Baugh  Chemical  companies.     (Joint  brief.) 

Hearings :  Pages  4757-4792. 

Witness :  Mr.  Wilbur  La  Roe,  jr.,  representing  the  United  States 
Potash  Producers'  Association. 

Costs  and  selling  prices. — American  potash  producers  are  now 
able  to  produce  at  a  cost  of  $1  to  $1.10  per  unit  of  K2O.  The  selling 
prices  of  the  German  Potash  Syndicate  to  the  34  American  fertilizer 
companies  is  64  cents  per  unit  of  potash.  Therefore  the  proposed 
duty  of  50  cents  per  unit  of  K2O  would  be  sufficient  protection. 
The  highest  freight  rate  that  can  be  figured — California  to  the  At- 


578  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 

lantic  seaboard — is  30  cents  per  unit  of  potash  instead  of  50  centsr 
as  previously  brought  out. 

Size  of  industry. — In  Searles  Lake,  Calif.,  and  in  Wyoming,  there 
are  30,000,000  tons  of  potash — enough  to  supply  the  demand  of  the 
United  States  for  a  number  of  years  at  the  pre-war  rate  of  consump- 
tion. There  are  also  thousands  of  lakes  in  Nebraska,  only  a  few  of 
which  have  been  developed.  The  American  producers  can  easily 
make  100,000  tons  of  pure  potash  per  year.  California  potash  salts 
are  mostly  60  per  cent  potash  as  compared  with  50  per  cent  of  the 
highest  grade  German  salts,  and  12  to  15  per  cent  of  lower  grade 
German  salts  which  fill  the  bulk  of  fertilizer  requirements.  The 
Nebraska  salts  are  about  30  per  cent  K2O,  which  would  figure  at  the 
higher  freight  rate  to  the  Atlantic  seaboard  per  unit  of  potash,  but 
markets  are  to  be  found  in  adjoining  States. 

Rates  suggested. — A  sliding  scale  for  five  years,  beginning  with 
2^  cents  per  pound  (actual  potash  content). 

Remarks. — The  statement  is  made  that  the  Virginia-Carolina 
Chemical  Co. — one  of  the  34  concerns  which  contracted  to  buy  Ger- 
man potash — is  a  stockholder  in  two  German  chemical  companies. 
These  34  concerns  consume  upward  of  60  per  cent  of  the  potash  used 
in  this  country.  The  remaining  25  per  cent  of  their  potash  require- 
ments for  1922  has  been  contracted  for  with  the  Alsatian  Potash 
Syndicate,  contract  with  which  is  given  (pp.  4682-4691).  The 
cost  to  the  American  farmer  under  the  proposed  tariff  would  be  2 
cents  per  bushel  in  the  case  of  potatoes  and  25  cents  per  acre  in  the 
case  of  cotton. 

Hearings :  Pages  4716-4725. 

Witness:  Mr.  J.  D.  Cameron  Bradley,  representing  the  American 
Agricultural  Chemical  Co. 

Costs  and  selling  prices. — The  present  German  and  French  price 
of  muriate  of  potash  is  85  cents  per  unit  of  K2O,  and  of  20  per  cent 
potash  salts  70  cents  per  unit  of  K2O. 

Size  of  industry. — The  witness  estimates  that  between  one-fifth 
and  one-sixth  of  this  country's  consumption  of  potash  is  produced 
in  the  United  States. 

Comparability. — Prior  to  the  war  some  potash  was  obtained  from 
Utah,  some  from  Nebrftska^nd  some  from  southern  California. 
The  amounts  were  small— in  percentage  practically  none.  Potash 
produced  from  the  Nebraska  lakes  is  low  grade  and  inferior  in  qual- 
ity to  the  German  article,  either  for  direct  application  or  for  use  in 
mixed  fertilizers.  The  California  product  contains  a  certain  amount 
of  borax,  deleterious  to  plant  life,  and  the  witness's  company  is  un- 
willing to  risk  its  use.  In  reply  to  a  question,  the  witness  agreed 
that  one-ninth  or  one-tenth  of  the  potash  manufactured  in  this  coun- 
try is  as  good  as  the  German  potash,  with  the  reservation  that  "  the 
Americans  have  not  made  as  high  a  grade  of  potash,  which  is  what 
is  desired." 

Rates  suggested. — That  potash  for  fertilizer  purposes  remain  oa 
the  free  list. 

Hearings :  Pages  4725-4743. 

Witness:  Mr.  S.  D.  Crenshaw.  representing  the  National  Fer- 
tilizer Association. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.   7456.  579 

Costs  and  selling  prices. — During  the  war  American  potash  sold 
for  as  high  as  $4.50  per  unit  of  K2L>,  or  six  to  seven  times  the  pre- 
war price  of  German  potash,  and  in  none  of  those  years  was  more 
than  54,000  tons  of  pure  potash  produced.  There  is  no  reason  to  be- 
lieve that  five  years  of  protection  would  enable  domestic  producers 
to  approach  pre-war  prices,  quantity,  and  quality.  Freight  rates  on 
American  potash  average  40  to  50  cents  per  unit  to  consuming  points. 

Rates  suggested. — Free  list. 

Remarks. — The  American  farmer  should  not  be  taxed  a  sum  esti- 
mated at  about  $54,000,000  to  nurse  a  war-time  business  to  self- 
support.  '  Certain  forms  of  potash  much  used  and  desired  in  the 
United  States  can  not  be  produced  here.  The  high  borax  content 
of  certain  American  potashes  causes  damage  to  the  crops  on  which 
they  are  used.  The  contract  between  the  German  Potash  Syndicate 
and  34  American  fertilizer  companies  is  given  in  full.  The  wit- 
ness deprecates  the  belief  in  the  low  value  of  the  German  mark  as 
the  cause  of  present  potash  prices.  Many  years  ago,  with  normal 
exchange,  a  contract  was  made  for  German  potash  at  about  30  per 
cent  below  present  prices. 

Hearings :  Pages  4752-4757. 

Witness:  Mr.  H.  A.  Huston,  manager  of  Soil  and  Crop  Service 
of  the  Potash  Syndicate,  New  York  City. 

Rates  suggested. — Free  list. 

Remarks. — Testimony  is  presented  contrary  to  that  given  before 
the  Ways  and  Means  Committee  by  Mr.  H.  W.  Smith  and  Mr.  W. 
La  Roe  "regarding  the  effects  of  a  tariff  on  agricultural  potash.  The 
tariff  would  mean  a  direct  tax  of  62|  cents  on  a  200-pound  bag  of 
kainite  and  $2  50'  on  a  200-pound  bag  of  muriate  or  sulphate  of 
potash. 

Hearings:  Pages  4744-4747. 

Witness:  Mr.  Walter  L.  Minch.  president  Minch  Bros.,  Bridge- 
ton,  N.  J. 

Rates  suggested. — Free  list. 

Remarks. — During  the  war-time  potash  shortage,  the  New  Jersey 
farmer  was  barely  able  to  pa.y  his  bills,  because  the  limited  amount 
of  potash  which  he  could  obtain  would  not  grow  sufficiently  large 
crops.  The  low  per  cent  of  potash  used  decreased  the  fertility  of 
the  fields.  A  duty  on  potash  would  materially  increase  the  farmers' 
expenses  for  fertilizers. 

Hearings:  Pages  4747-4750. 

Witness:  Hon.  John  S.  Benham,  Member  of  Congress  from  the 
State  of  Indiana. 

Rates  suggested. — Free  list. 

Remarks. — Testimony  was  presented  protesting  against  the  in- 
creased costs  which  the  farmer  would  have  to  bear  if  a  duty  were 
levied  on  potash. 

Hearings :  Pages  4750-4752. 

Witness :  Dr.  Frank  App,  representing  the  New  Jersey  Federation 
of  County  Boards  of  Agriculture  and  the  New  Jersey  State  Grange. 

The  witness  entered  into  the  cost  to  the  individual  farmer  of  the 
potash  tariff,  H.  R.  7456,  paragraph  1635.  The  cost  to  New  Jersey, 
a  small  Stajte  consuming  about  160.000  tons  of  fertilizers  of  4  per  cent 


580  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

potash,  would  be  $320,000,  or  about  $11  per  farm  as  an  average. 
Using  8  per  cent  goods,  as  is  now  largely  the  case,  the  cost  would 
be  doubled.  The  typical  New  Jersey  potato  grower,  producing  about 
40  acres  of  potatoes,  would  be  charged,  on  a  6  per  cent  potash  basis, 
$120  to  support  the  proposed  tariff.  At  8  per  cent,  used  by  most 
farmers,  it  would  mean  $160  per  farm,  equivalent  to  2  cents  a  bushel. 
Tomato  and  sweet-potato  growers  would  be  similarly  affected. 
Rates  suggested — Free  list. 

Hearings :  Pages  4792-4793. 

Witness:  Mr.  Charles  McCarthy,  Honolulu,  Hawaii. 

In  connection  with  proposals  for  placing  a  duty  on  fertilizers,  the 
witness  laid  stress  upon  Hawaii  being  an  agricultural  country,  pro- 
ducing sugar  under  abnormal  conditions,  the  product  being  sold  be- 
low actual  cost.  In  these  circumstances  the  inhabitants  would  suffer 
greatly  if  they  had  to  pay  an  increased  price  for  fertilizer,  which  it 
is  found  necessary  to  use  even  on  virgin  soil. 

The  witness  filed  a  telegram  from  the  Hawaiian  Fertilizer  Co. 
(Ltd.)  and  the  Pacific  Guano  &  Fertilizer  Co.,  protesting  against 
duties  on  fertilizer  materials  as  detrimental  to  agriculture.  Such 
duties,  it  is  added,  are  not  needed  to  encourage  production,  as  sup- 
plies exceed  demand. 

Rates  suggested. — Free  list. 

Hearings :  Pages  4793-4794. 

Witness :  Mr.  T.  C.  Atkeson,  representing  the  National  Grange. 
(Brief.) 

The  brief  maintains  that  all  forms  of  potash  used  chiefly  as  ferti- 
lizers should  be  admitted  to  the  United  States  free  of  duty.  The 
need  of  fertilizers  has  greatly  increased  in  recent  years,  and  large 
quantities  of  potash  are  required.  Imports  of  this  product  have 
risen  to  250,000  tons  per  year,  90  per  cent  going  to  farmers.  The 
brief  specifically  objects  to  the  provision  in  H.  R.  7456  deferring 
the  duty-free  entrance  of  potash  for  five  years ;  it  has  been  estimated 
that  apart  from  the  possibly  reduced  use  of  potash — in  itself  a 
calamity — the  cost  to  farmers  of  this  provision  during  that  period 
would  approximate  $40,000^000. 

As  regards  the  possibility  ^f  developing,  through  the  duty,  a  do- 
mestic supply  of  potash  adequate  to  the  country's  needs,  the  industry 
should  be  promoted  in  some  other  way  than  by  taxing  farmers 
$50,000,000 — the  excess  cost  over  the  foreign  supply — in  order  to 
make  the  potash  industry  a  gift  of  $10,000,000.  Whatever  else  is 
done,  American  agriculture  should  not  be  penalized. 

Rates  suggested. — Free  list. 

Witnesses:  Baugh  &  Sons  Co.,  Philadelphia,  Pa.;  the  Baugh 
&  Sons  Co.,  Baltimore,  Md. ;  the  Baugh  Chemical  Co.,  Baltimore, 
Md.  (Joint  brief;  no  appearance  at  hearings.) 

Rates  suggested. — Free  list. 

Remarks. — Domestic  potash  production  falls  from  50  to  75  per  cent 
short  of  filling  domestic  requirements.  The  proposed  duty  would 
place,  for  five  years,  an  average  annual  burden  of  $7,600,000  on  the 
consumer.  The  financial  condition  of  the  farmer  is  not  strong  enough 
to  enable  him  to  carry  the  additional  burden,  and  he  would  conse 
quently  buy  less  potash. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  581 

PARAGRAPHS  1636  AND  1654. — POTASSIUM  AND  SODIUM  CYANIDES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  P.  Samuel  Rigney,  representing  the  Roessler  &  Hasslacher  Chemical  Co., 

New  York  City.     (See  also  under  paragraph  1654.) 
Mr.  Alfred  W.  Gray,  representing  the  Chamber  of  Commerce  of  the  City 

of  Niagara  Falls. 

FAVORING  PROPOSED  DUTIES: 

Hon.  Thomas  Sterling,  United  States  Senator  from  South  Dakota. 
The  Homestake  Mining  Co.,  Lead,  S.  Dak.     (Brief.) 
Mr.  J.  O.  Hammitt,  representing  the  American  Cyanamid  Co. 
Hon.  Tasker  L.  Oddie,  United  States  Senator  from  Nevada. 

The  64  pages  covered  by  the  testimony,  briefs,  and  rebuttals  of  the 
foregoing  witnesses  are  largely  devoted  to  controversy  between  some 
of  the  parties.  Thus,  Mr.  Rigney  disclaims  any  German  affiliation  as 
regards  the  Roessler  &  Hasslacher  Chemical  Co".,  and  Senator  Sterling 
describes  the  American  Cyanimid  Co.,  whose  plant  is  in  Canada,  as 
being  made  up  of  Americans  or  officered  by  American  citizens.  The 
Roessler  &  Hasslacher  Co.  contends  that  it  has  no  monopoly  of  the 
manufacture  of  cyanide  in  the  United  States,  all  patents  having  long 
since  expired.  On  the  other  hand,  the  American  Cyanamid  Co.  main- 
tains that  the  monopoly  is  perpetuated  by  the  circumstance  that  the 
Roessler  &  Hasslacher  Co.  is  and  always  has  been  the  only  manufac- 
turer of  cyanide  in  this  country. 

Stress  is  laid,  by  various  testifying  interests,  upon  the  extended 
uses  to  which  cyanide  can  be  applied,  these  including  new  methods  in 
electroplating,  the  heat  treating  of  steel,  the  dye  and  color  industry, 
horticulture,  and  the  eradication  of  rats  and  other  vermin. 

The  testimony  in  behalf  of  the  Chamber  of  Commerce  of  the  City 
of  Xiagara  Falls  points  to  the  endeavor  being  made  "  to  save  that 
great  electrochemical  city  from  what  you  might  say  would  be 
ruination  by  free  trade  in  chemicals."  The  chemical  industry  of 
that  city  is  stated  to  be  absolutely  dependent  upon  protection  for 
its  success.  On  the  other  hand,  the  brief  of  the  American  Cyanamid 
Co.  asserts  that  the  purpose  of  the  proposed  tariff  on  cyanide  is  to 
exclude  that  company  from  the  American  market  and  restore  the 
former  oppressive  monopoly. 

Among  other  statements  made,  Senator  Sterling  figured  that  the 
duty  of  33£  per  cent  on  sodium  cyanide,  proposed  by  Mr.  Rigney, 
would  increase  the  cost  of  production  of  gold  by  the  cyanide  process 
by  about  1.6  cents  per  ton,  or  about  $25,000  per  year  in  the  case 
of  the  Homestake  Co. ;  the  amount  of  cyanide  used  per  ton  in  refin- 
ing gold  is  two-tenths  of  a  pound. 

The  testimony  includes  many  figures,  tables,  etc.,  bearing  upon 
sources  of  supply,  production  costs  and  selling  prices,  volume  of 
manufacture  and  other  features.  Some  details  of  the  testimony 
follow. 

Hearings :  Pages  4794-4803,  4837-4852. 

Witness :  Mr.  Samuel  Rigney,  assistant  treasurer,  the  Roessler  & 
Hasslacher  Chemical  Co.,  New  York  City. 

Rates  suggested. — Thirty-three  and  one-third  per  cent  ad  valorem. 

77134—22 38 


582  DIGEST   OF   TARIFF    HEARINGS,   H.    R.    7456. 

Remarks. — Further  testimony  is  given  regarding  the  business 
methods  of  the  Roessler  &  Hasslacher  company.  It  is  stated  that  the 
company  is  importing  cyanide  and  selling  sodium  cyanide  at  a  cost  of 
about  6  cents  per  pound  below  the  cost  of  production  in  their  Niagara 
Falls  plant,  this  being  done  in  order  to  retain  customers  until  large- 
scale  production  may  be  resumed.  This  concern  has  imported  within 
the  last  year  about  5,000,000  pounds  of  cyanide. 

Hearings :  Pages  4835^837. 

Witness :  Mr.  Alfred  W.  Gray,  representing  the  Chamber  of  Com- 
merce of  Niagara  Falls,  N.  Y. 

Rates  suggested. — Thirty-three  and  one  third  per  cent  ad  valorem. 

Remarks. — Mr.  Gray's  testimony  takes  up  the  question  of  pro- 
tecting the  electrochemical  industries  at  Niagara  Falls.  It  was 
stated  that  many  of  these  would  be  forced  to  shut  down  if  a  duty 
were  not  levied  on  electrochemical  products,  because  electric  power 
costs  only  one-half  as  much  on  the  Canadian  side  of  the  Falls  as  on 
the  American  side.  In  addition,  the  Canadian  companies  have  a 
right  to  two-thirds  of  all  available  water  power. 

Hearings :  Pages  4803-4809 ;  4852-4856. 

Witness:  Hon.  Thomas  Sterling,  Senator  from  South  Dakota. 

Costs  and  selling  prices. — The  proposed  duty  of  33£  per  cent  on 
sodium  cyanide  would  increase  the  cost  of  production  of  gold  by 
the  cyanide  process  by  about  1.6  cents  per  ton,  or  about  $25,000  per 
year,  in  the  case  of  the  Homestake  Mining  Co.,  South  Dakota.  The 
amount  of  cyanide  used  per  ton  in  refining  gold  is  two-tenths  of  a 
pound.  The  price  of  cyanide  was  14.5  cents  per  pound  in  1913, 
reached  a  maximum  of  30  cents  per  pound  for  large  amounts  in 
1918,,  and  has  since  declined  to  less  than  21-|  cents  per  pound. 

Rates  suggested. — Free  list. 

Remarks. — The  testimony  as  presented  tended  to  show  that  the 
Roessler  &  Hasslacher  Co.  has  a  monopoly  in  the  United  States  of 
the  production  of  sodium  cyanide  and  that  a  duty  on  this  commod- 
ity would  encourage  such  monopoly  to  the  exclusion  of  cyanide  made 
by  the  American  Cyanamid  Co.  at  Niagara  Falls,  Canada.  The  lat- 
ter company  is  an  American  concern  and  has  now  offered  cyanamid 
at  a  price  lower  than  the  Roessler  &  Hasslacher  Co.,  which  it  could 
not  do  were  there  a  duty. 


Hearings :  Pages  4817-4830. 

Witness:  Mr.  J.  O.  Hammitt,  representing  the  American  Cyan- 
amid Co.,  Niagara  Falls,  Canada. 

Rates  suggested. — Free  list. 

Remarks. — Witness's  testimony  takes  up  in  detail  the  methods  of 
business  of  the  Roessler  &  Hasslacher  Chemical  Co.,  their  German 
affiliations,  and  the  history  of  its  seizure  by  the  Alien  Property  Cus- 
todian. It  is  stated  that  the  sodium  cyanide  market  of  the  world 
is  controlled  by  this  concern  and  the  British  Cassel  Co.,  so  that 
smaller  amounts  are  sold  at  higher  profits  rather  than  larger  amounts 
in  open  competition.  At  present  the  American  Cyanamid  Co.  is 
very  largely  closed  down.  From  10  to  12  per  cent  of  the  crude  cyan- 
amid produced  by  them  is  used  in  the  manufacture  of  sodium  cyanide. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  583 

PARAGRAPH  1643. — RICE. 

WITNESSES,  AND  INTERESTS  BEPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  E.  A.  Eignus,  representing  the  Pacific  Rice  Growers'  Association  of 

California  and   the  American  R  ce  Growers'   Association  of  Louisiana, 

Texas,  and  Arkansas ;  address,  Sacramento,  Calif. 
Hon.   Edwin   S.    Broussard,   United    States    Senator   from    Louisiana,   and 

Hon.    Samuel   M.    Shortridge,    United    States   Senator   from   California. 

(Joint  brief.) 
The  American  Rice  Growers'  Association.     (Brief.) 

Hearings :  Pages  4858-4864. 

Witness:  Mr.  E.  A.  Eignus  (as  above). 

Rates  suggested. — The  free-list  provision  for  rice  used  in  the  can- 
ning industry  should  be  dropped,  as  it  might  open  up  the  possibility 
of  free  importation  of  rice  for  many  purposes.  Canners  can  use 
domestic  rice  in  their  soups  equally  as  well  as  foreign. 

Witnesses :  The  Hon.  Edwin  S.  Broussard,  United  States  Senator 
from  Louisiana,  and  Hon.  Samuel  M.  Shortridge,  United  States  Sen- 
ator from  California.  (Joint  brief  of  September  2,  1921 ;  no  appear- 
ance at  hearings.) 

Rates  suggested. — The  provision  for  the  free  importation  of  rice 
for  canned  foods  should  be  dropped. 

Remarks. — The  proposed  provision  for  free  rice  for  canning  con- 
cerns only  the  Campbell  soup  people.  It  will  benefit  them  only  to 
the  extent  of  one-half  cent  per  case  of  three  dozen  cans,  an  amount 
not  sufficient  to  jeopardize  the  American  rice  industry.  Such  a 
provision  would  open  the  door  to  fraud  in  the  importation  of  rice. 

It  is  conceded  that  the  rice  industry  must  be  protected  against 
cheap  foreign  labor  or  perish.  As  all  rice  is  food,  why  should  there 
be  an  exception  in  the  case  of  canned  foods  ? 

NOTE. — In  a  brief  of  September  14,  1921,  Senator  Broussard  transmits  a  copy 
of  an  amendment  to  paragraph  728,  introduced  by  Senator  Shortridge,  sug- 
gesting the  following  changes : 

On  page  89,  line  24,  strike  out  the  semicolon  after  the  word  "  pound  "  and 
insert  a  period.  Strike  out  the  words  "  all  the  foregoing  not  specially  pro-- 
vided  for."  On  page  195,  strike  out  paragraph  1643. 

Witness:  The  American  Rice  Growers'  Association,  including  the 
Pacific  Rice  Growers'  Association,  on  behalf  of  the  rice  farmers 
of  the  United  States.  (Brief;  no  appearance  at  hearings.) 

Comparability. — Rice  growers  claim  that  the  rices  now  grown  in 
the  United  States  are  just  as  satisfactory  as  imported  Patna  ric'e. 

Rates  suggested. — "Rice  used  for  canning  purposes"  (now  free) 
should  be  dutiable  at  2  cents  per  pound. 

Re77iarks. — The  association  maintains  that  rices  now  grown  in 
America  are  satisfactory  for  use  in  canned  foods;  if  not,  other  rices 
can  be  grown  to  meet  the  needs  of  canned-food  manufacturers.  Per- 
mitting this  grade  of  rice  to  come  in  free  leaves  a  loophole  through 
which  considerable  oriental  rice  can  be  brought  into  the  United 
States. 


584  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

PARAGRAPH  1644. — SAGO  AND  SAGO  FLOUR. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  W.  Parker  Jones    (statement  and  brief),  representing  the  American 
Manufacturers'  Association  of  Products  from  Corn. 

Hearings:  Pages  1337-1340  of  Schedule  1. 

Rates  suggested. — All  starches  to  carry  the  same  rate  of  duty, 
which  should  not  be  less  than  1-|  cents  per  pound.  The  following  is 
suggested  in  place  of  paragraph  80  (Starches)  : 

Starch,  including  all  preparations  from  whatever  substance  produced  fit  for 
use  as  starch,  including  sago  flour  and  tapioca  flour,  li  cents  per  pound. 

To  remove  any  possible  doubt  as  to  the  intent,  the  words  "sago 
flour  "  and  "  tapioca  flour  "  should  be  eliminated  from  the  two  para- 
graphs in  the  free  list. 

PARAGRAPH  1653. — KID  LEATHER. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  PROPOSED  DUTY  AND  RECLASSIFICATION  : 

Mr.    Laird    H.    Simons,    representing    kid-leather    tanners    of    the    United 
States. 


of  industry. — Prior  to  about  1889  the  kid-leather  trade  in  the 
United  States  was  of  insignificant  proportions,  the  American  market 
being  dominated  by  French  kid,  selling  at  50  cents  to  $1.50  per  foot. 
The  introduction  of  the  American  chrome  tannage  process  in  1889, 
aided  by  the  McKinley,  Wilson,  Dingley,  and  Payne- Aldrich  Tariff 
Acts,  had  the  effect  of  reducing  the  price  of  American-tanned  kid  to 
less  than  one- third  of  the  former  price  of  French  kid. 

Comparability. — The  few  months'  operation  of  the  Underwood 
tariff  before  the  outbreak  of  the  war  demonstrated  the  ability  of 
German  and  French  tanners  to  compete  in  the  American  market 
against  unprotected  finished  leather. 

Rates  suggested. — Free  raw  material  is  essential,  as  provided  in 
•paragraph  1653,  but  kid  leather  made  from  goat,  kid,  and  kangaroo 
skins  should  be  taken  from  the  free  list  (par.  1600)  and  specially 
dealt  with  by  including  it  with  chamois  and  other  leather  in  para- 
graph 1431  at  20  per  cent  ad  valorem. 

Remarks. — Attention  is  directed  to  the  subtle  effort  to  divert  this 
business  from  American  to  British  firms  by  means  of  the  export 
and  rebate  terms  of  the  Indian  tariff,  in  effect  September  11,  1919. 

PARAGRAPH  1654. — CYANIDES. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  . 

Mr.  P.  Samuel  Rigney,  representing  the  Roessler  &  Hasslacher  Chemica 
Co.,  New  York  City. 

FAVORING  PROPOSED  DUTIES: 

The  Tom  Reed  Gold  Mines  Co.,  Oatman,  Ariz.     (Brief.) 

Hearings :  Pages  4837-4857. 
Witness :  Mr.  P.  Samuel  Kigney. 

Costs  and  selling  prices. — The  present  price  of  carload  lots  is  21J 
to  23  cents  per  pound;  smaller  quantities  bring  a  correspondingly 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  585 

high  price.  A  table  submitted  shows,  for  1914  and  1920,  the  volume 
and  price  of  sales  to  one  of  the  largest  consumers  of  cyanide  in  the 
mining  industry. 

Size  of  industry. — Prior  to  1914  the  company  produced  approxi- 
mately 10,000,000  pounds  annually  and  about  9,000,000  pounds  were 
imported  from  Germany.  Domestic  plants  increased  during  the 
war  to  an  output  of  more  than  17,000,000  pounds  per  annum,  thus 
meeting  all  requirements  of  the  United  States. 

Comparability. — Domestic  cyanide  is  sold  under  a  guarantee  of 
96  to  98  per  cent  sodium  cyanide,  while  that  from  Canada  has  from 
40  to  46  per  cent  and  is  sold  at  a  lower  rate. 

Rates  suggested. — All  cyanide  salts  to  be  grouped  under  a  separate 
paragraph  at  33£  per  cent,  or  a  specific  duty  of  6  cents  per  pound. 

Remarks. — Would  add  tariff  duty  in  the  following  way:  Average 
domestic  pre-war  price,  21  cents ;  German  pre-war  price,  14.3,  a  dif- 
ference of  little  less  than  7  cents.  It  was  pointed  out  that  the  prin- 
cipal raw  materials  for  the  manufacture  of  sodium  cyanide  are  duti- 
able. For  example,  the  duty  on  caustic  soda,  of  which  1  pound  is 
required  to  make  a  pound  of  sodium  cyanide,  is  one-half  cent  per 
pound;  anhydrous  ammonia,  of  which  one-half  pound  is  required 
for  1  pound  of  sodium  cyanide,  is  dutiable  at  2|  cents  per  pound. 

NOTE. — The  above  supplements  the  witness's  previous  testimony  on  para- 
graphs 1636  and  1654. 

Witness:  The  Tom  Reed  Gold  Mines  Co.  (Brief;  no  appearance 
at  hearings.) 

Costs  and  selling  prices. — For  two  years  this  concern  has  been 
buying  cyanide  (41  per  cent  sodium  cyanide)  from  the  Canadian 
plant  of  the  American  Cyanamid  Co.,  after  having  previously  paid 
much  higher  prices  for  cyanides  made  in  the  United  States.  The' 
proposed  duty  would  prevent  the  importation  of  these  cyanides  from 
Canada.  As  the  price  of  gold  is  fixed  at  $20.67  per  ounce,  the  gold- 
mining  industry  is  now  laboring  under  the  handicap  of  increased 
costs  of  labor  and  raw  materials,  at  no  increase  in  selling  price. 

Rates  suggested. — Free  list. 

PARAGRAPH  1659.— NEWSPRINT  PAPER. 
WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  W.  E.  Haskell,  representing  the  newspaper  print  manufacturers  of  the 

United  States  and  the  International  Paper  Co.,  New  York  City. 
Mr   William  J.  Pape,  representing  the  Watertown  Republican,  Watertown, 

Conn     and  the  Publishers'  Buying  Corporation,  Washington,  D.  C. 
Mr.  Emory  Thomason,  representing  the  American  Newspaper  Publishers' 

Mr.    S.   Edward  Launer,   representing  the    International   Brotherhood   of 

Pulp,  Sulphite,  and  Paper  Mill  Workers,  Fort  Edward,  N.  Y. 
Mr.  Timothy  Healy,  representing  the  International  Brotherhood  of  Firemen. 

Hearings :  Pages  4866^878. 

Witness:  Mr.  W.  E.  Haskell,  representing  the  newspaper  print 
manufacturers  of  the  United  States  and  the  International  Paper  Co. 

Size  of  industry.— The  total  amount  of  print  papers  consumed  in 
the  United  States  is  2,000,000  tons  annually;  of  this  amount  about 


586  DIGEST  OF   TARIFF   HEARINGS,   H.   R.   7456. 

680,000  tons  are  imported  from  Canada,  and  up  to  December,  1921, 
about  10,000  tons  from  abroad. 

Comparability. — Newspaper  print,  on  the  free  list  since  the  pas- 
sage of  the  Underwood  bill  in  1913,  is  the  only  grade  of  paper  which 
has  been  stripped  of  every  vestige  of  protection.  The  industry  has 
been  forced  to  compete,  defenseless,  with  the  lower  cost  production  of 
Canadian  mills,  which  sell  over  80  per  cent  of  their  product  in 
American  markets,  enjoying  the  advantage  of  the  exchange,  amount- 
ing in  itself  to  a  profitable'  bonus  above  the  selling  price.  Owing 
to  a  depreciated  currency  and  an  unnatural  and  debased  rate  of  ex- 
change, together  with  a  wage  scale  only  a  fraction  of  that  prevailing 
in  the  United  States,  the  newsprint  manufacturers  of  Finland,  Nor- 
way, Sweden,  and  Germany  are  selling  their  paper  in  America,  in 
increasing  quantities,  at  prices  much  below  the  actual  manufacturing 
cost  in  American  mills.  Germany,  with  the  largest  available  ex- 
port production,  possesses  added  advantages  in  direct  and  indirect 
Government  subventions.  The  general  policy  of  these  countries 
seems  to  be  to  keep  quotations  on  newsprint  just  below  the  selling 
price  in  the  United  States,  Germany  has  recently  quoted  far  below 
the  cost  of  manufacturing  in  the  most  efficient  American  mills. 

Rates  suggested. — Newsprint  manufacturers  of  the  United  States 
ask  a  provision  that  will  protect  them  from  competition  both  de- 
moralizing and  ruinous  to  their  industry.  They  ask  for  a  duty 
that  will  equalize  costs  and  selling  prices. 

Remarks. — Short-sighted  legislation  robbed  the  important  Ameri- 
can newsprint  industry  of  its  possible  expansion  and  handed  it  as  a 
free  gift,  of  enormous  value,  to  a  foreign  country.  The  manufac- 
ture by  America  of  the  additional  680,000  tons  of  newsprint  im- 
ported from  Canadian  mills  in  1920  would  have  given  employment 
to  28.700  workmen  in  the  United  States,  distributed  $20,000,000  in 
wages,  aided  the  railroads  by  the  freight  receipts  on  nearly  2,700,000 
tons  of  raw  material,  and  contributed  substantial  taxes  to  the  Gov- 
ernment. That  was  the  size  of  the  free  gift  to  Canada  at  the  ex- 
pense of  this  industry.  From  1910  to  1920,  the  production  of  news- 
print in  Canada  increased  from  161,000  tons  to  883,000  tons,  or  over 
540  per  cent.  Exports  to  the  United  States  grew  from  about  25,000 
tons  in  the  year  1910  to  680,000  tons  in  1920,  an  increase  of  over 
2,700  per  cent.  Canada  experienced  this  prosperous  expansion  of 
her  newspaper  print  industry  by  grace  of  press-influenced  American 
legislation.  At  the  same  time,  the  industry  of  the  United  States, 
which,  with  a  minimum  of  congressional  aid  and  consideration  and 
a  continuance  of  its  statutory  rights  in  Canadian  reserve  crownland 
pulp  wood,  could  have  developed  capacity  to  meet  the  steadily  grow- 
ing demand  of  home  consumers,  was  forced  to  halt  its  progress. 
With  the  exception  of  one  small  mill  built  by  a  newspaper  com- 
pany, only  one  integrated  newsprint  plant  has  been  constructed  in 
the  United  States  since  1909.  The  witness  contrasted  the  growth 
of  the  paper  industry,  paying  duties,  with  the  newsprint  industry, 
which  is  on  the  free  list. 

Hearings :  Pages  4878-4895. 

Witness :  Mr.  William  J.  Pape,  representing  the  Waterbury  Re- 
publican, Waterbury,  Conn.,  the  Publishers'  Buying  Corporation, 
Washington,  D.  C.,  and  other  associations. 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  587 

Costs  and  selling  prices. — The  average  American  price  of  news- 
print in  1913-1915,  and  even  until  the  first  part  of  1915,  was  $36 
to  $38  per  ton.  The  contract  price  now  (December,  1921)  being 
paid  by  the  witness  is  $80  per  ton.  The  price  at  the  end  of  the  war 
was  $72  per  ton.  In  the  first  quarter  of  1920  it  was  $90;  second 
quarter,  $100;  third  quarter,  $130  per  ton.  Country  newspapers, 
very  small  users,  have  been  unable  to  make  contracts  with  the  mills 
and  have  been  obliged  to  buy  through  brokers  and  jobbers,  paying 
as  high  as  22  cents  per  pound  for  individual  lots.  It  is  practically 
impossible  to-day  (December,  1921)  to  buy  at  less  than  15  or  16 
cents  per  pound. 

Comparability. — A  cablegram  from  Norway  quotes  the  price  of 
newsprint  for  the  last  six  months  of  1921  at  3f  cents  per  pound,  or 
about  $5  per  ton  below  the  contract  price  for  the  next  quarter;  in 
December,  1921,  the  American  price  was  $80  per  ton.  The  witness 
interviewed  Mr.  Seaman,  of  the  Seaman  Paper  Co.,  who  stated  that 
the  large  tonnage  of  newsprint  dumped  into  this  market  from  Scan- 
dinavia, Finland,  and  Germany  did  most  assuredly  play  an  im- 
portant part  in  the  depression  of  the  newsprint  market.  This  for- 
eign paper  did  not  seriously  affect  the  book  market,  in  which  quick 
delivery  is  essential.  Foreigners  can  not  compete  with  American 
mills  in  the  book  market  and  never  will  be  able  to  do  so.  A  com- 
parative table,  showing  imports  of  European  newsprint  for  20 
months  beginning  February  20, 1921,  appears  on  page  4895. 

Rates  suggested. — The  interests  represented  desire  newsprint  to 
be  placed  on  the  free  list.  "  Free  print  paper  saves  the  situation  for 
us  and  saves  our  lives,  and  we  want  it  continued." 

Remarks. — A  large  proportion  of  the  capital  in  Canadian  news- 
print mills,  built  during  the  last  ten  years,  is  American.  Canada, 
having  the  wood  and  the  water,  of  course  took  advantage  of  the 
fact  and  tied  up  the  wood  that  would  otherwise  have  come  to  Ameri- 
can mills.  There  never  was  any  need  for  overseas  newsprint  until 
the  price  became  so  high  and  Hundreds  of  small  dailies,  and  some 
big  ones,  were  threatened  with  ruin.  Overseas  newsprint  began  to 
come  in  in  the  fall  of  1920,  because  of  the  alleged  scarcity,  the  rap- 
idly rising  price,  and  the  threatened  extinction  of  the  newspaper 
business.  It  takes  on  an  average  1^  to  1|  cords  of  pulp  wood  to 
produce  a  ton  of  newsprint.-  The  average  cost  of  the  wood,  laid 
down  at  the  mills  in  the  United  States,  is  about  $20  per  cord,  but 
prices  vary  greatly  according  to  the  sections  from  which  it  is  de- 
rived. 

Hearings :  Pages  4896-4900. 

Witness :  Mr.  Emory  Thomason.  representing  the  American  News- 
paper Publishers'  Association,  Chicago,  111. 

Costs  and  selling  prices. — In  1920  paper  on  the  so-called  stock 
market  reached  the  price  of  $280  and  even  $300  a  ton  without  any 
corresponding  increase  in  production  costs,  the  price  being  a  purely 
competitive  paper  price. 

Size  of  industry. — The  association  represents  about  550  news- 
papers, whose  annual  expenditures  for  newsprint  are  about  $200,- 
000,000,  and  who  consume  approximately  80  per  cent  of  the  news- 
print used  in  the  United  States.  The  American  consumption  of 
newsprint  was  2,150,000  tons,  of  which  American  mills,  operating 


588  DIGEST   OF  TARIFF   HEARINGS,   H.   R.   7456. 

at  capacity,  were  able  to  supply  only  1,511,000  tons.  The  depletion 
of  raw  materials  in  America  has  been  such  that  it  is  now  wholly 
impossible  to  manufacture  here  the  newsprint  for  which  American 
papers  have  created  the  demand;  manufacturers  have  consequently 
had  to  look  to  Canada  for  the  greater  part  of  their  pulp  wood.  The 
mills  of  the  United  States  consumed,  in  1917,  5,536,802  cords  of 
spruce  wood,  of  which  nearly  two-thirds  was  imported  from  Canada. 

Rates  suggested. — The  interests  represented  ask  that  newsprint  be 
retained  on  the  free  list  on  the  purely  economic  ground  that  not 
enough  newsprint  can  be  manufactured  in  America  to  satisfy  the 
demand. 

Remarks. — The  wording  of  paragraph  322  should  be  changed  so 
that  newsprint  paper  alone  shall,  as  regards  importations  from  Can- 
ada, be  subject  to  the  suspension  of  a  tariff  imposing  a  duty  of  $15 
a  ton  on  newsprint.  Part  of  those  newspapers  which  represent  an 
increase  in  the  consumption  of  newsprint  are  devoted  wholly  to  ad- 
vertising, which  has  been  one  of  the  prime  factors  in  the  building  of 
American  industry  as  a  whole.  Regulations  and  restrictions  on  ex- 
portation have  been  imposed  by  Canadian  provincial  governments 
upon  wood  pulp  derived  from  the  Crown  lands  of  Canada ;  licenses 
to  cut,  owned  by  various  American  companies,  specifically  state  that 
permission  may  in  any  year  be  restricted  or  wholly  cut  off.  Such 
licenses  must  be  renewed  from  year  to  year.  If  the  Canadian  pro- 
vincial governments,  in  endeavoring  to  have  that  pulp  wood  fabri- 
cated into  pulp,  if  not  into  paper,  in  Canada,  have  adopted  restric- 
tions upon  the  use  of  their  own  natural  resources,  the  Underwood 
resolution,  in  its  turn,  has  been  adopted  in  both  Houses  of  Congress, 
empowering  the  President  to  make  a  reciprocal  restriction  if  he 
chooses  to  do  so.  The  witness,  as  representing  the  association,  urges 
the  elimination  of  that  restricting  clause  from  the  House  bill  free 
list.  He  also  urges,  in  connection  with  the  words  "  standard  news- 
print paper,"  forming  part  of  the  present  House  bill,  and  in  order 
that  all  newsprint  paper  may  be  unquestionably  included  and  that 
there  may  be  no  difference  of  definition  involved  hereafter,  that  the 
words  "  rotogravure  paper  and  half-tone  papers  "  be  included.  This 
is  required  because  rotogravure  and  half-tone  papers  are  used  very 
largely  in  all  American  newspapers,  in  the  same  manner  as  newsprint 
paper,  being  paper  only  slightly  polished  and  weighing  from  2  to  3 
pounds  per  500  sheets  more.  Then,  again,  spruce  and  fir  logs,  para- 
graph 402,  when  used  in,  or  imported  for,  the  manufacture  of  news- 
print, should  be  included  in  the  free  list. 

Hearings :  Pages  4900-4904. 

Witness:  Mr.  S.  Edward  Launer,  representing  the  International 
Brotherhood  of  Pulp,  Sulphite,  and  Paper  Mill  \Vorkers,  Fort  Ed- 
ward, N.  Y. 

Costs  and  selling  prices. — The  price  of  the  wood  that  goes  into  paper 
has  increased  100  per  cent,  or  from  $10  to  $15  a  ton. 

Comparability. — The  witness  called  attention  to  statements  that 
America  will  be  confronted  with  paper  from  Germany  at  $50  a  ton ; 
to  the  low  cost  of  labor  in  foreign  countries,  especially  in  Germany 
and  Scandinavia ;  to  the  advance  of  exchange  in  their  favor,  and  to 
the  effects  these  will  have  upon  American  laborers,  and  their  stand- 
ards of  living,  in.  the  newsprint  industry.  He  stated  that  members 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456.  589 

of  the  brotherhood  are  entirely  in  accord  with  manufacturers  in  their 
request  for  adequate  protection  to  American  workers  in  that  industry. 
Rates  suggested. — A  tariff  on  Canadian  print  paper  is  not  desired, 
but  that  would  be  preferred  to  the  entry  of  large  amounts  of  foreign 
paper  from  German  and  Scandinavian  countries. 

Remarks. — In  May.  1921,  the  workers  in  American  paper  mills 
worked  on  an  8-hour  schedule  and  wages  were  such  as  to  conform 
to  the  good  American  standard  of  living.  Since  that  time  large  re- 
ductions, averaging  from  10  to  25  per  cent,  have  been  put  in  effect 
and  at  the  present  time  workers  in  the  industry  are  confronted  with 
further  reductions.  The  first  reductions  were  based  largely  on  the 
cost  of  living,  but  although  there  has  been  no  reduction  in  the  cost  of 
living  since  that  time,  the  fact  that  newsprint  paper  for  1922  is  on 
the  market  at  $70  a  ton  indicates  that  further  reductions  must  be 
looked  for  if  they  are  to  continue  the  operation  of  the  mills.  A  mini- 
mum of  40  cents  an  hour  is  now  (December,  1921)  the  wage  rate  in 
the  organized  mills.  It  was  52  cents  an  hour  previous  to  the  reduc- 
tion. Many  American  paper  mills  are  located  in  isolated  sections, 
where  living  costs  are  higher ;  in  many  cases  workers  have  lived  there 
for  years,  working  only  in  the  mills,  and  have  no  other  business  or 
trade  of  any  kind.  If  the  operation  of  these  mills  is  curtailed  by  the 
introduction  of  foreign  paper,  these  people  will  have  to"  work  for  a 
lower  and  inadequate  wage. 

Hearings :  Pages  4904-4907. 

Witness:  Mr.  Timothy  Healy,  representing  the  Internationa] 
Brotherhood  of  Firemen. 

Remarks. — The  witness  represents  the  steam-plant  men  in  prob- 
ably 45  or  50  mills  in  the  United  States.  The  organization  is  strongly 
opposed  to  the  importation  of  foreign  paper  to  this  country  and  in 
favor  of  the  American  workman.  If  it  were  a  question  whether  a 
tariff  against  European  paper  should  apply  also  to  Canada,  the  or- 
ganization would  favor  that,  if  necessary.  The  witness  expects  wages 
in  the  American  paper  industry  to  go  down  to  30  cents  an  hour  in 
January,  1922.  This  is  below  a  living  wage  unless  prices  are  also 
reduced.  As  long  as  paper  is  selling  at  $70  a  ton  there  should  be  no 
reduction  in  wages. 

Hearings :  Pages  4907-^911. 

Witness:  Mr.  J.  Raymond  Hoover,  representing  the  Publishers' 
Buying  Corporation.  (Brief.) 

The  brief  is  framed  as  a  reply  to  denials  of  wrongdoing  by  the 
newsprint  industry  in  1920  and  1921.  It  deprecates  the  reliance  upon 
"mere  statistics."' on  which  these  denials  are  based,  and  cites  utter- 
ances of  Mr.  Dodge,  in  which  it  is  admitted  that  "  the  demand  for 
paper  far  outruns  the  possible  production  in  this  country."  'The 
dependence  upon  and  subservience  to  paper  manufacturers  on  the 
part  of  publishers  are  noted — the  smaller  ones  being  driven  from 
the  business  by  threatened  bankruptcy. 

.  The  argument  of  the  brief  is  to  the  effect  that  a  5  per  cent  im- 
portation is  not  capable  of  forcing  American  manufacturers  to  sell 
their  product  at  an  actual  loss,  and  that  no  need  for  a  tariff  on  news- 
print has  been  shown  to  exist. 


590  DIGEST   OF   TARIFF    HEARINGS,   H.    R.    74-56. 

PARAGRAPH  1663.— PYRITES. 

WITNESS,  AND  INTERESTS  REPRESENTED. 

FAVOBING  HIGHER  DUTIES  : 

Mr.  A.  J.  Woodruff,   representing  the  Western   Pyrites  Corporation,   the 

^  Ohio   Sulphur  Co.,   the  Franklin  Pyrites  Corporation,   and  other   inde- 
pendent producers  of  pyrites;  address,  Garrisonville,  Va. 
FAVORING  PROPOSED  DUTIES  : 

Mr.  John  I.  Tierney,  representing  the  National  Fertilizer  Association. 

Mr.  C.  Wilbur  Miller,  representing  Davidson  Chemical  Co.,  Baltimore,  Md. 

Hearings :  Pages  4911-4913. 

Witness:  Mr.  A.  J.  Woodruff  (as  above). 

Costs  and  selling  prices. — Spain  can  load  its  pyrites  at  the  mines, 
haul  it  by  rail  to  the  seacoast,  125  miles,  ship  it  across  the  Atlantic 
Ocean,  unload  it  in  the  port  of  New  York,  and  sell  its  sulphur  content 
for  one-half  of  the  freight  rate  on  ore  from  mines  37  miles  south  of 
Washington  to  Xew  York  City.  In  the  Texas  and  Louisiana  fields 
sulphur  is  taken  from  the  earth  by  superheated  steam  which  liquefies 
the  sulphur,  so  that  with  every  ton  of  sulphur  taken  out  of  the  earth 
there  is  that  much  larger  cavity  to  heat.  This  is  shown  by  a  jump 
in  cost  from  $5.73  per  ton  in  1917  to  $10.89  in  1921. 

Size  of  industry. — On  the  Atlantic  coast  there  is  something  over 
$12,000,000  invested  in  properties  producing  pyrites,  every  one  of 
which  is  closed  to-day.  The  supply  of  pyrites  is*  unlimited. "  Prewar 
imports  amounted  to  1,000,000  tons^per  year,  and  the  largest  importa- 
tion during  the  war  was  500,000  tons.  Domestic  production  prior  to 
the  war  amounted  to  about  500,000  tons  per  year. 

Rates  suggested. — A  duty  of  $4  per  ton  on'cuprous,  cupriferous,  or 
iron  pyrites,  now  on  the  free  list. 

Remarks. — Pyrites  is  used  only  in  the  manufacture  of  sulphuric 
acid.  Prior  to  the  war,  probably  90  per  cent  of  the  sulphuric  acid  was 
so  produced.  To-day  70  per  cent  of  the  sulphuric  acid  is  produced 
by  the  burning  of  brimstone  from  the  Texas  and  Louisiana  fields. 
Therefore  the  price  of  sulphuric  acid  to-day  is  set  absolutely  by  the 
sulphur  producers  and  not  by  the  pyrites  producers.  Fifty-two  per 
cent  of  the  sulphuric  acid  manufactured  in  the  United  States  goes 
into  commercial  fertilizers.  As  the  sulphur  of  the  South  to-day  sets 
the  price  of  sulphuric  acid,  a  tariff  duty  on  pyrites  would  not  increase 
the  cost  of  fertilizer.  The  importation  of  Spanish  pyrites  does  not  at 
present  affect  the  price  of  sulphuric  acid  in  the  least,  but  even  small 
shipments  do  set  the  price  with  which  domestic  producers  of  pyrites 
are  forced  to  compete. 

Hearings :  Pages  4913-4915. 

Witness :  Mr.  John  I.  Tierney,  representing  the  National  Fertilizer 
Association. 

Rates  suggested. — Free  list. 

Remarks. — The  domestic  pyrites  industry  virtually  does  not  exist 
except  where  freight  rates  are  favorable,  because  of  the  low  price 
of  American  sulphur.  The  greater  portion  of  both  of  these  com- 
modities is  used  in  the  manufacture  of  sulphuric  acid.  Prior  to  the 
war  about  1.000,000  tons  of  foreign  pyrites  were  imported  annually, 


DIGEST  OF  TARIFF   HEARINGS,  H.   R.   7456.  591 

but  recently  the  price  of  sulphur  has  declined,  so  that  foreign  pyrites 
can  no  longer  compete  except  at  Atlantic  ports  and  similar  favored 
points. 

The  tariff  on  pyrites  would  actually  be  prohibitive.  Domestic 
sulphur  would  be  used  exclusively  in  the  manufacture  of  sulphuric 
acid,  while  sulphur  producers  would  be  tempted  to  raise  their  prices 
in  accordance  with  the  duty  on  pyrites. 

Hearings :  Pages  4915-4916. 

Witness:  Mr.  C.  Wilbur  Miller,  representing  the  Davidson  Chemi- 
cal Co.,  Baltimore,  Md. 

Rates  suggested. — Free  list. 

Remarks.— The  concern  represented  has  an  investment  of  $3,500,000 
in  Cuban  pyrites  property.  A  duty  on  pyrites  would  have  the  effect 
of  shutting  out  this  import  business,  which  is  conducted  by  Ameri- 
cans with  American  capital. 

PARAGRAPH  1663. — REFINED  SULPHUR. 

WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  George  F.  Thompson,  representing  the  Niagara  Sprayer  Co.,  Middle- 
port,  N.  Y. 

Hearings:  Pages  4916-4917. 

Size  of  industry. — There  are  sulphur  refineries  at  Williamsburg, 
Brooklyn,  South  Brooklyn,  Staten  Island,  Bayonne,  N.  J.,  one  at 
San  Francisco,  and  another  in  Arkansas,  besides  the  witness's  plant. 
The  industry  employs  many  skilled  workers  at  American  wages. 

Rates  suggested. — A  duty  of  $2  per  ton,  based  upon  the  difference 
in  wages  here  and  in  Sicily. 

Remarks. — The  witness  took  occasion  to  object  to  a  duty  on 
arsenic.  His  company  uses  this  product  as  an  insecticide  and  fungi- 
cide and  thinks  it  bad  policy  to  put  a  tax  on  an  article  whose  total 
world  production  is  only  20,000  tons. 

PARAGRAPH  1666.— TAPIOCA. 

WITNESSES. 

FAVORING  HIGHER  DUTIES  : 

Manufacturers  and  dealers  interested  in  tapioca  dextrines,  etc.     (Brief.) 
The  Perkins  Glue  Co.,  Lansdale,  Pa.     (Brief.) 

FAVORING  PROPOSED  DUTIES  : 

Guggenheim.  Strasser  &  Meyer.     (Brief.) 

Witnesses:  Manufacturers  and  dealers  interested  in  tapioca  dex- 
trines, adhesives,  glues,  and  textile  finishings.  (Brief;  no  appear- 
ance at  hearings.) 

Size  of  industry. — About  100,000,000  pounds  are  imported  an- 
nually, one-half  of  which  is  used  for  foodstuffs  and  the  balance  for 
industrial  purposes. 


592  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

Comparability. — It  is  contended  that  tapioca  is  a  noncompetitive 
product,  none  being  grown  in  this  country.  Its  nearest  substitutes 
are  corn  and  potato  starch. 

Rates  suggested. — Tapioca  to  remain  on  the  free  list. 

Remarks. — The  brief  quotes  from  the  Tariff  Commission's  survey 
on  Starch  and  related  materials  and  contends  that  tapioca  does  not 
compete  with  corn  or  potato  starches,  being  used  for  certain  special 
purposes  to  which  the  others  are  not  adaptable. 

Witness:  The  Perkins  Glue  Co.,  Lansdale,  Pa.  (Brief;  no  ap- 
pearance at  hearings.) 

Size  of  industry.— The  Perkins  Glue  Co.  has  a  capital  of  $1,500,000 
and  employs  100  people. 

Comparability. — It  is  contended  that  tapioca  is  a  noncompetitive 
product. 

Rates  suggested. — Free  list. 

Remarks. — The  business  depends  and  was  built  up  on  the  basis  of 
free  tapioca,  the  preferred  raw  material  used  in  the  manufacture  of 
the  company's  glue.  Imported  tapioca  flour  does  not  compete  with 
domestic  tapioca  nor  with  any  other  domestic  vegetable  product,  such 
as  corn  or  potato  starch,  for  the  specific  purpose  for  which  the  com- 
pany sells  it.  The  revenue  derivable  from  a  duty  on  tapioca  flour 
would  be  insignificant. 

Hearings :  Pages  4917-4921. 

Witness :  Guggenheim,  Strasser  &  Meyer,  New  York  City. 

In  a  brief  filed  by  Mr.  Arthur  L.  Strasser  it  is  argued  that  tapioca 
is  a  food;  that  it's  production  and  importation  do  no  affect  the 
farmer,  even  as  regards  cornstarch  and  potatoes,  and  that  it  has 
been  admitted  free  of  duty  since  1883.  Out  of  a  total  average  im- 
portation of  73,000,000  pounds  46  per  cent  was  used  for  food  purposes. 

As  regards  the  competition  of  tapioca  with  flour,  it  is  shown 
that  tapioca  amounts  to  only  twenty-three  ten-thousandths  of  1  per 
cent  of  the  United  States  corn  crop.  Analogous  statements  are  made 
in  regard  to  cornstarch  and  potatoes. 

Rates  suggested. — The  brief  represents  the  imposition  of  a  duty 
as  a  reversal  of  the  policy  of  leaving  food  supplies  untaxed  and  re- 
quests that  tapioca  be  retained  on  the  free  list.  A  duty  would  result 
in  confusion  and  demoralization  in  many  industries. 

PARAGRAPH  1668.— TEA. 

) 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  MODIFICATION. 

Mr.   W.   G.  W.  Melville,  representing  Ridgways    (Inc.),  New  York  City. 
(Brief.) 

Hearings :  Page  4917. 

The  brief  aims  at  a  clearing  up  of  doubtful  interpretations  in  rei- 
gard  to  the  taxation  of  the  original  tea  chests  in  which  tea  is  shipped 
from  the  country  of  production.  To  obviate  the  possibility  of  tea, 
packed  in  small  packages  abroad,  coming  in  free  of  duty,  a  modifica- 
tion of  the  wording  of  the  paragraph  is  submitted,  applying  only  to 
packages  containing  less  than  5  pounds  net  weight  of  tea. 


DIGEST   OF   TARIFF   HEARINGS,   H.    R.    7456.  593 

PARAGRAPHS  1670  AND  386.— PIG  TIN. 
WITNESS,  AND  INTEREST  REPRESENTED-. 

FAVORING  HIGHER  DUTIES  : 

Mr.  William  Loeb,  jr.,  representing  the  American  Smelting  &  Refining  Co. 
Hearings :  Pages  4921-4926. 

Costs  and  selling  prices. — All  the  tin  that  is  smelted  and  refined 
in  the  United  States  is  produced  from  Bolivian  ores — Bolivian  con- 
centrates. Fluctuations  in  tin  prices  are  both  violent  and  wide. 
Changes  in  price,  ranging  from  5  to  30  cents  per  pound  in  the  course 
of  a  year,  constantly  occur.  This  is  due  to  the  activity  of  specula- 
tive interests  in  England  and  the  Far  East.  In  1914  the  highest 
price  was  65  cents,  the  lowest  28.5  cents,  and  the  average  35.7  cents 
per  pound.  In  1919  the  highest  price  was  72.5  cents,  the  lowest 
52.75  cents,  and  the  average  65.54  cents.  In  1920  the  highest  price 
"was  64.75  cents,  the  lowest  32.5  cents,  and  the  average  50  cents. 

Size  of  industry. — The  tin  smelting  and  refining  industry  in  this 
country  draws  its  supplies  almost  exclusively  from  South  America, 
which  is  the  only  important  producer  of  tin  outside  of  the  sphere 
•of  British  influence,  besides  the  cutch  metal  derived  from  the  Dutch 
East  Indies. 

Owing  to  the  vagaries  of  tin  prices,  tin  smelting  in  the  United 
States  is  not  a  profitable  enterprise.  The  first  tin  smelting  and  re- 
fining plant  to  be  established  in  this  country  has  involved  an  invest- 
ment cost  of  over  $700,000.  It  has  been  operated  since  March,  1916, 
and  has  produced  a  total  of  72,294,000  pounds  of  refined  tin.  The 
result  to  date  has  been  an  operating  loss  of  more  than  $1,000,000. 

The  United  States  consumption  of  pig  tin  amounts  to  52,000  tons 
of  imported  metal,  principally  Malay  or  English  tin.  and  12.000  tons 
of  pig  tin  produced  from  ores  imported  into  the  United  States, 
making  a  total  of  64,000  tons. 

Comparability. — The  tin-smelting  industry  of  Cornwall  is  cen- 
turies old,  and  the  direct  labor  cost  is  much  less  than  in  the  United 
States.  The  industry  in  the  Straits  Settlements  and  in  the  Dutch 
East  Indies  is  served  wholly  by  coolie  labor  or  its  equivalent.  The 
one  advantage  enjoyed  by  the  United  States  smelters  and  refiners  in 
the  treatment  of  Bolivian  ores  rests  on  cheaper  freights  from  mine 
to  smelter ;  but  this  advantage  is  wholly  insufficient  to  overcome  the 
cheaper  treatment  costs  of  the  foreign  plants. 

Xo  workable  deposits  of  tin  ore  from  which  metallic  tin  could 
be  commercially  produced  have  yet  been  discovered  or  developed 
in  the  United  States.  The  largest  amount  of  tin  ever  produced  from 
domestic  ores  in  a  single  year  was  140  tons,  in  1916.  The  necessary 
raw  material  for  the  domestic  refined  tin  production  has  thus  far 
been  obtained  almost  exclusively  from  Bolivia  in  the  form  of  tin 
concentrates,  of  which  approximately  20,000  tons  have  been  imported 
into  this  country  annually. 

The  two  largest  refineries  in  the  world  are  located  in  the  Straits 
Settlements.  They  refine  about  60  per  cent  of  the  aggregate  pro- 
duction of  pig  tin. 

Rates  suggested. — As  a  measure  of  protection  to -the  domestic  in- 
dustry a  duty  on  tin  only  as  metal  is  required,  i.  e.,  tin  in  bars,  blocks, 
pigs,  or  grain,  or  granulated,  or  any  other  metallic  form.  A  duty 


594  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

of  3  or  4  cents  per  pound  would  probably  suffice.  No  duty  is  needed 
on  tin  ores,  as  there  are  probably  no  tin  mines  in  the  United  States, 
and  imported  ores  are  needed  as  raw  material  for  the  domestic  pro- 
duction. The  suggested  duty  would  enable  American  tin  producers 
(1)  to  compete  on  equal  terms  for  tin  ores  in  Bolivia,  (2)  to  encour- 
age a  larger  Bolivian  mine  output,  with  a  view  to  an  increased  pro- 
duction of  domestic  refined  tin,  (3)  to  enter  the  Chinese  field  as  a 
purchaser  of  tin  ores,  and  (4)  would  insure  permanence  to  the  indus- 
try and  promote  its  growth.  Tin  represents  but  a  small  part  of  the 
value  of  the  several  finished  products  employing  tin  in  their  manu- 
facture. 

PARAGRAPH  1670.— TIN  ORE. 

WITNESSES. 
REQUESTING  OMISSION  : 

The  N.  &  G.  Taylor  Co.,   manufacturers  of  tin  plate,   Philadelphia,  Pa. 

(Brief.) 
The  Association  of  Tin  Plate  Manufacturers,  Pittsburgh,  Pa.     (Brief.) 

Witness:  The  N.  &  G.  Taylor  Co.  (Brief:  no  appearance  at  hear- 
ings.) 

Rates  suggested. — Removal  of  the  proviso  in  paragraph  1670  of 
H.  R.  7456,  which  provides  for  a  duty  on  imports  of  different  forms 
of  tin  after  domestic  production  reaches  a  certain  quantity  annually. 
It  is  characterized  as  absurd  to  place  a  duty  on  a  raw  material  not 
produced  in  the  United  States  in  any  reasonable  quantity — a  condi- 
tion responsible  for  the  company  having  to  import  all  its  pig  tin  for 
making  tin  plate. 

Witness:  The  Association  of  Tin  Plate  Manufacturers,  Pitts- 
burgh, Pa.  (Brief;  no  appearance  at  hearings.) 

Protest  is  entered  against  the  provision  under  which  the  proposed 
duty  of  4  cents  per  pound  is  to  be  increased  to  6  cents  when  it  is 
shown  that  the  mines  of  the  United  States  are  producing  1,500  tons 
of  cassiterite  and  bar,  block,  and  pig  tin  per  year.  The  manufac- 
turers of  tin  plate  are  described  as  being  unanimous  in  the  opinion 
that  it  is  ridiculous  to  make  a  heavy  duty,  6  cents  per  pound,  con- 
tingent only  upon  the  production  of  1,500  tons  per  year,  when  the 
consumption  of  tin  in  this  country  is  approximately  100,000  tons  per 
year. 

PARAGRAPH  1672. — TURPENTINE  AND  ROSIN. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  HIGHER  DUTIES: 

Mr.  Carl  F.  Speh,  representing  the  Turpentine  and  Rosin  Producers'  Asso- 
ciation, New  Orleans,  La. 

Hearings :  Pages^4927-4931. 

Costs  and  selling  prices. — The  average  market  quotation  on  rosin 
is  about  $4  for  280  pounds,  or  little  more  than  $6  per  barrel. 

Size  of  industry.— The  production  of  1909-1914  averaged  520.000 
barrels  of  spirits  of  turpentine  and  about  1,750,000  barrels  (500 
pounds  gross  weight)  of  rosin.  Produced  85  per  cent  of  the  world's 
output  before  the  war. 


DIGEST  OF  TARIFF   HEARINGS,   H.   R.   7456.  595 

Rates  suggested. — Twenty-five  per  cent  ad  valorem  on  turpentine 
and  rosin. 

Remarks. — Each  barrel  of  50  gallons  of  gum  turpentine  produces 
3£  barrels  of  rosin,  or  500  pounds. 

PARAGRAPH  1677. — PHONOGRAPH  MASTER  RECORDS. 

WITNESS,  AND  INTEREST  REPRESENTED. 
FAVORING  PROPOSED  DUTIES  : 

Mr.  Marion  Sorian,  representing  the  Columbia  -Graphophone  Manufacturing 
Co.,  Bridgeport,  Conn.     (Brief.) 

Hearings :  Pages  4932^933. 

Rates  suggested. — Retention  on  the  free  list,  as  provided  for  in 
paragraph  1677,  of  disks  of  soft  wax,  commonly  known  as  master 
records,  or  metal  matrices  obtained  therefrom,  to  be  used  in  the 
manufacture  of  sound  records  for  export  purposes.  The  Treasury 
Department  has  ruled  that  these  articles  have  been  manufactured  in 
a  foreign  country  and  that  they  are  dutiable  as  manufactures  of 
wax.  (Paragraph  267,  act  of  1913.) 

Remarks. — Neither  the  wax  master  record  nor  the  metal  matrix  can 
be  used  in  a  commercial  way  or  to  produce  sound  records  in  commer- 
cial quantities.  They  are  merely  preliminary  steps. 

PARAGRAPH  1678. — PERSONAL  EFFECTS. 


FAVORING  REDUCTION  OF  EXEMPTION  : 

The  National  Association  of  Merchant  Tailors. 

Hearings :  Page  4934. 

The  brief  is  a  protest  against  the  proposal  in  H.  R.  7456  to  increase 
the  exemption  of  residents  of  the  United  States  from  $100  in  value, 
as  at  present,  to  $250  in  valuation  of  articles  acquired  abroad  for 
personal  or  household  use  or  as  souvenirs  or  curios. 

The  proposal  is  denounced  as  class  legislation  in  favor  of  people 
who  can  afford  to  travel  to  Europe.  It  is  estimated  that  each  of  the 
222,712  American  citizens  entering  United  States  ports  during  the 
fiscal  year  ending  June  30,  1921,  took  advantage  of  the  existing  pro- 
vision and  it  is  asked :  Why  increase  the  $22,271,200  value,  thus  im- 
ported, by  an  additional  exemption  of  $150? 

PARAGRAPH  1683. — LUMBER. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Robert  B.  Allen,  representing  the  West  Coast  Lumbermen's  Association, 

Seattle,  Wash. 
The  R.  T.  Jones  Lumber  Co.,  North  Tonawanda,  N.  Y.     (Brief.) 

FAVORING  PROPOSED  DUTIES  : 

Mr.  E.  Bruce  Hill,  representing  the  National  Retail  Lumber  Dealers'  Asso- 
ciation. 

Mr.  Donald  D.  Conn,  representing  the  Shevlin.  Carpenter  &  Clarke  Co., 
Minneapolis,  Minn.,  and  the  Western  Pine  Manufacturers'  Association, 
Portland.  Oreg. 


596  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

FAVORING  PROPOSED  DUTIES — Continued. 

Mr.  Harrison  Hatton,  representing  the  Northwestern  Lumbermen's  Asso- 
ciation, Minneapolis,  Minn. 

Mr.  Fred.  J.  Bruce,  representing  the  New  York  Lumber  Trade  Association. 
The  Western  Pine  Manufacturers'  Association.  (Brief.) 

Brady  Bros.,  Tonawanda,  N.  Y.     (Brief.) 

Hearings :  Pages  4935-4946. 

Witness :  Mr.  Robert  B.  Allen,  representing  the  West  Coast  Lum- 
bermen's Association,  Seattle  Wash. 

Size  of  industry. — The  industry  in  Oregon  and  Washington  nor- 
mally employs  105,000  men,  and  is  now  operating  with  about  38  per 
•cent  unemployed.  If  freight  rates  are  reduced  in  the  spring  (1922) 
the  industry  will  move  along  and  furnish  ample  lumber  for  the  de- 
mands of  the  American  trade.  The  freight  rate  from  Oregon  to 
New  York,  in  December,  1921,  was  90  cents  per  1.000  shingles,  but 
the  water  rate  was  lower.  There  is  no  danger  of  the  depletion  of 
timber  resources  if  Congress  will  enact  a  practical  national- forest 
policy  law.  With  reforestation  the  country  can  have  a  permanent 
supply  of  lumber. 

Comparability. — According  to  official  figures,  Canada  has 
898,000,000,000  feet  of  timber,  while  the  United  States  has 
2,214.000,000,000  feet.  Canadian  production  since  1913  has  increased 
275  per  cent,  80  per  cent  of  the  production  being  sold  in  the  United 
States.  Since  the  passage  of  the  act  of  1913,  200  shingle  mills  have 
gone  out  of  business  in  the  States  of  Oregon  and  Washington. 

Rates  suggested. — The  interests  represented  are  in  favor  of  para- 
graph 1683  just  as  it  stands.  As  the  primary  reason  for  asking  that 
this  reciprocal  arrangement  be  placed  in  the  hands  of  the  Presi- 
dent, they  do  not  understand  why  an  American  citizen  who  has  in- 
vested his  capital  abroad  should  be  entitled  to  preferential  treatment 
as  against  the  American  citizen  who  has  invested  his  capital  at  home 
and  who  finances  American  pay  rolls.  In  the  fiscal  year  of  1913, 
which  was  prior  to  the  effective  date  of  the  1913  tariff  act,  the  Cana- 
dians shipped  under  duty  as  much  as  they  now  ship  free,  and  at  much 
lower  prices.  In  1913,  under  the  act  of  1909,  carrying  a  duty  of 
$1.25,  the  Canadians  shipped  over  1,021,810,000  feet  of  lumber  of  an 
average  value  of  .$17.59.  In  the  fiscal  year  1921,  under  absolute  free 
trade,  they  shipped  over  919,927.000  feet,  at  an  average  price  of ; 
$42.47.  The  industry  wants  a  bargaining  tariff.  The  Canadian 
Northwest  is  coming  back  and  absolute  freedom  of  competition  is 
desired. 

Remarks. — The  industry  is  handicapped  by  the  freight-rate  situa 
tion  in  finding  markets  for  the  common  lumber.  A  tree  is  75  per 
cent  common  lumber — a  low-value  commodity  which  can  not  stand 
high  transportation  charges.  Just  now  there  is  great  difficulty  in 
moving  common  lumber,  which  means  selling  at  the  highest  possible 
price  what  can  be  sold,  in  order  to  meet  the  pay  rolls,  and  wasting 
the  balance. 

Witness :  The  R.  T.  Jones  Lumber  Co.,  North  Tonawanda.  N 
Y.  (Brief:  no  appearance  at  hearings.) 

Remarks. — Referring  to  prevalent  discussion  on  the  lumber  tariff, 
the  brief  notes  the  absence  of  presentation  from  the  AmericaB 
viewpoint — free  rough  lumber  and  a  specific  duty  on  dressed  lum-f 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  597 

her,  aiming  at  revenue,  the  protection  of  the  planning  mill  in- 
dustry, and  the  welfare  of  the  American  workman.  It  is  natural 
that  those  having  interests  in  Canada  should  be  in  favor  of  free 
lumber  of  all  kinds,  but  the  American  viewpoint  is  insisted  upon. 
It  is  urged  that  the  removal  of  the  duty  on  Canadian  lumber  some 
few  years  ago  did  not  reduce  the  cost  to  the  consumer  while  in- 
creasing the  net  returns  to  the  Canadian  manufacturer,  although  a 
very  different  result  was  heralded  by  the  then  advocates  of  free 
lumber. 

Hundreds  of  thousands  of  men  are  employed  in  the  planing  mill 
industry  of  the  Northern  States,  and  a  majority  of  these  mills 
are  idle  or  partially  idle  at  this  time.  Along  with  this  condition, 
many  planing  mills  have  sprung  up  within  the  last  10  years,  just 
across  the  Canadian  border,  dressing  not  only  Canadian  lumber  but 
American  yellow  pine. 

Hearings:  Pages  4946-4949. 

Witness:  Mr.  E.  Bruce  Hill,  representing  the  National  Retail 
Lumber  Dealers'  Association. 

Costs  and  selling  prices. — The  price  of  lumber  in  Pittsburgh  to- 
day (December,  1921)  is  about  $12  a  thousand  feet  higher  than  in 
19i2.  Lumber  that  then  sold  for  $30  is  selling  to-day  at  $42,  about 
half  of  that  increase  being  due  to  the  advance  in  freight  rates. 
During  1920  white  oak  flooring  was  about  $200  a  thousand  and  is 
now  about  $100.  It  was  somewhere  around  $40  in  1912. 

Rates  suggested. — The  interests  represented  object  to  a  duty  of 
50  cents  per  thousand  on  shingles,  and  to  the  reciprocity  features, 
which  seem  to  be  retaliation.  They  want  free  shingles  and  lumber. 
Retailers  and  consumers  are  both  against  any  tariff.  If  Canada 
should  take  her  tariff  off  lumber,  the  American  manufacturer  would 
have  a  wider  market  for  his  lumber,  which  would  undoubtedly 
mean  higher  prices  in  this  country.  If  this  country  should  put  on  a 
25  per  cent  tariff,  which  the  Canadians  have  now," that  would  mean 
$7  a  thousand  on  lumber  on  which  the  price  can  be  raised. 

Hearings :  Pages  4949-5009. 

Witness:  Mr.  Donald  D.  Conn,  representing  the  Shevlin,  Carpen- 
ter &  Clarke  Co.,  Minneapolis.  Minn.,  and  the  Western  Pine  Manu- 
facturers' Association.  Portland,  Oreg. 

Costs  and  selling  prices. — Tables  showing  the  present  difference 
in  mill  prices  of  lumber,  and  the  difference,  if  the  proposed  tariff 
is  adopted,  as  affecting  American  users  will  be  found  on  page  4965. 

Rates  suggested. — A  partial  list  of  organizations  and  firms  which 
have  expressed  unqualified  opposition  to  any  tariff  upon  lumber, 
rough  or  dressed,  whether  applied  as  a  rigid  duty  or  as  a  retaliatory 
measure  against  Canada,  will  be  found  on  page  4972.  A  tariff  would 
upset  market  conditions.  To  restrict  importation  is  indirectly  to 
affect  the  interests  of  American  industries  exporting  manufactured 
products  to  Canada.  The  elimination  of  the  retaliatory  clause  under 
paragraph  1683,  and  of  the  50-cent  tariff  on  shingles,  paragraph  408, 
Js  requested.  Free  logs,  paragraph  403,  and  free  ties,  paragraph  405, 
are  also  desired. 

Remarks. — In  1920.  the  wage  paid  to  common  labor  in  the  United 
States  lumber  industry  was  $3.88  per  day;  in  Canada,  $4.82  per  day. 
77134—22 39 


598  DIGEST   OF   TARIFF   HEARINGS,   H.   R.   7456. 

The  respective  wages  paid  to  common  labor  at  the  beginning  of  1921 
were  $2.86  and  $3.37.  See  table  of  wakes  per  hour  on  page  4994. 
The  labor  rate  varies  in  different  sections.  For  statement  of  ranges 
of  values  for  pine  stumpage  in  Ontario  and  Minnesota,  see  page  4955. 

Tables  are  given  on  pages  4956-4957  setting  forts  costs  of  various 
kinds  of  lumber  per  1,000  feet,  and  comparisons  of  averages  per 
1,000  feet  for  the  months  of  March  to  August,  1921,  inclusive.  "  The 
United  States  is  cutting  its  timber  four  times  as  fast  as  it  is  grow- 
ing it;  timber  is  being  cut  and  destroyed  5.6  times  faster  than  the 
growth.  Other  facts  about  the  disappearing  forests  of  the  United 
States  are  cited  and  stress  is  laid  on  the  fact  that  a  tariff  on  lumber 
can  not  be  reconciled  with  the  United  States  conservation  program. 
Any  tariff  duties  imposed  will  increase  domestic  mill  prices  and  bring 
about  an  unwarranted  advance  in  lumber  prices  to  consumers. 
Shingles,  listed  in  paragraph  408  of  H.  R.  7456  for  a  tariff  of  50 
cents  per  1,000,  should  be  placed  on  the  free  list.  A  statement  of 
wages  being  paid  on  October  4,  1921,  by  28  logging  operations  in 
British  Columbia  (p.  4994) )  shows  that  this  wage  scale  approximates 
or  exceeds  the  general  scale  of  wages  in  the  United  States. 

NOTE. — A  large  part  of  Mr.  Conn's  testimony  and  submitted  documents  is 
controversial  in  character,  dealing  with  statements  made  in  behalf  of  other 
interests. 

Hearings:  Pages  5009-5010. 

Witness:  Mr.  Harrison  Hatton,  representing  the  Northwestern 
Lumbermen's  Association,  Minneapolis,  Minn. 

Costs  and  selling  prices. — In  the  face  of  freight  advances  of  from 
$2  to  $5  per  thousand,  retail  prices  were  brought  down  during  the 
last  year  all  the  way  from  $10  to  $25  per  1,000  feet  on  various  grades 
of  lumber.  The  members  of  the  association  have  reduced  overhead 
charges  on  the  handling  of  lumber  more  than  50  per  cent. 

Size  of  industry. — The  organization  comprises  2,800  retail  lumber 
yards.  Its  members  are  carrying  on  their  books  the  accounts  of 
more  than  65,000  farmers  for  a  total  of  more  than  $85,000,000. 

Rates  suggested. — A  brief  submitted  sets  forth  that  the  organi- 
zation is  opposed  to  any  tariff  of  any  description.  The  position  of 
the  membership  is  that  the  trend  of  prices  to  the  consumer  is  down- 
ward, and  that  anything  which  even  indirectly  obstructs  this  reces- 
sion in  prices  is  against  sound  public  policy.  Any  tariff  on  lumber 
and  shingles  will  tend  to  increase  costs  to  the  ultimate  consumer. 
The  yards  of  members  are  now  absorbing  more  than  4,000  cars  of 
Canadian  lumber  annually,  and  for  this  reason  they  are  directly  con- 
cerned in  this  tariff  issue. 

Hearings :  Page  5011. 

Witness:  Mr.  Fred  J.  Bruce,  representing  therNew  York  Lumber 
Trade  Association,  New  York  City. 

Rates  suggested. — At  a  general  meeting  of  the  association  on 
April  20,  1921,  resolutions  were  passed  expressing  strong  disapproval; 
of  H.  R.  7456.  It  was  urged  that  the  proposed  tariff  is  directed 
against  Canada,  the  association's  best  per  capita  customer,  buying 
almost  $2  worth  of  American  goods  as  against  $1  worth  of  her's 
sold  here.  The  falling  off  in  European  and  foreign  trade  renders 


DIGEST   OF   TAEIFF   HEARINGS,   H.   R.   7456.  599 

it  inadvisable  to  jeopardize  the  Canadian  market.  No  protection 
is  needed  by  the  American  lumber  industry;  the  revenue  from  a 
tariff  would  be  inconsiderable,  and  the  danger  of  retaliation  would 
arise. 

Witness:  The  Western  Pine  Manufacturers'  Association.  (Brief; 
no  separate  appearance  at  hearings,  but  Mr.  Donald  D.  Conn  (pp. 
4949-5009)  represented  the  association  and  another  interest.) 

The  association  would  have  been  represented  before  the  Ways  and 
Means  Committee,  but  it  was  inconceivable  that  the  committee  would 
indorse  any  tariff  on  lumber.  The  association  inclosed  with  its  brief 
•communications  from  the  following: 

Mr.  E.  Bruce  Hill,  director  of  the  National  Retail  Lumber  Dealers'  Asso- 
ciation. 

Mr.  Nelson  Morgan,  Washington  representative  of  the  Western  Pine  Man- 
ufacturers' Association. 

Representative  Andrew  J.  Hickey,  Washington,  D.  C. 

Representative  Fish,  of  New  York. 

Also,  copy  of  a  resolution  unanimously  adopted  by  the  American  Farm 
Bureau  Federation,  Washington,  D.  C.,  April  22,  1921. 

These  statements  exhibit  a  general  agreement  in  regard  to  the 
necessity  of  conserving  domestic  lumber  resources  and  to  the  calam- 
itous effect  on  the  building  industry  which  the  imposition  of  an  im- 
port duty  would  produce.  Representative  Fish  states  that  the  pro- 
posed duty  of  25  per  cent  ad  valorem  on  finished  lumber  would  mean 
an  increase  of  approximately  $250  to  the  cost  of  every  $5,000  house, 
and  an  annual  increase  in  building  cost  of  at  least  $200,000,000.  Mr. 
Nelson  Morgan  points  to  "the  dire  need  of  a  million  and  a  quarter 
new  houses  in  this  country,"  and  it  is  stated  elsewhere  that  all 
retailers  of  lumber  and  building  materials  throughout  the  United 
States  ask  that  all  lumber  remain  on  the  free  list.  The  brief  itself 
affirms  that  the  proposed  duty  will  in  many  cases  wipe  out  the 
benefits  of  State  legislation  fixing  low  rates  of  interest  on  building 
loans  and  exempting  new  building  from  taxation. 

Witness:  Brady  Bros.,  wholesale  pine  lumber,  Tonawanda,  N.  Y. 
(Brief:  no  appearance  at  hearings.) 

Remarks. — The  brief  is  particularly  directed  against  any  duty  on 
Canadian  white  pine,  and  charges  that  "sinister  and  active  elements, 
for  their  own  selfish  interests,  are  now  *  *  *  attempting  to  put 
an  import  duty  on  lumber."  The  brief  characterizes  such  a  duty  as 
detrimental  to  the  best  interests  of  the  public ;  economically  unsound ; 
jeopardizing  present  good  trade  relations  with  this  .country's  best 
customer — Canada — and  liable  to  evoke  retaliation.  It  can  not  be 
regarded  as  essential  in  a  protective  sense,  will  be  negligible  as 
a  revenue  producer,  and  saddle  an  additional  burden  on  the  consum- 
ing public. 

Cited  figures  show  that  Canada  buys  from  the  United  States  sub- 
stantially $2  worth  of  commodities  for  every  $1  worth  sold,  these 
figures  including  even  all  the  lumber  and  all  the  wheat  imported 
from  there.  The  seriousness  to  Canada  arising  from  the  erection 
of  a  tariff  wall  against  her,  and  the  impetus  to  retaliation  thereby 
produced,  are  dwelt  upon. 


600  DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456. 

As  regards  the  effect  upon  the  ultimate  (American)  consumer,  it 
is  regarded  as  a  natural  sequence  to  a  duty  on  Canadian  lumber 
that  the  American  manufacturer  will  advance  his  price  by  approxi 
mately  the  amount  of  the  duty.  On  a  basis  of  40,000,000,000  feet  of 
lumber  manufactured  in  this  country  annually,  it  is  estimated  that 
the  bill  to  the  American  consumer  would  be  increased  by  $80.000,000. 

The  brief  contains  several  tables  showing,  in  particular,  the 
itemized  values  of  Canada's  total  imports  and  .the  very  large  pro- 
portion of  these  going  from  the  United  States. 

PARAGRAPH  1685. — DESIGNS  AND  SKETCHES  USED  IN  THE  INDUSTRIAL 

ARTS. 


FAVORING  HIGHER  DUTIES: 

The  Association  of  Wallpaper  Designers  of  America  and  Textile  Designers. 
(Brief;   no  appearance  at  hearings.) 

Costs  and  selling  prices. — Certain  designs  can  be  created  in  Ger- 
many at  an  equivalent  cost  of  $6,  which  could  not  be  produced  in 
the  United  States  under  $40. 

Rates  suggested. — A  duty  of  100  per  cent  ad  valorem  is  asked  for. 

Remarks. — Industrial  designs  and  sketches  have  been  protected  by 
the  tariff,  but  recently  the  law  has  been  interpreted  in  such  a  wav 
as  to  remove  all  protection.  (T.  D.  38368,  G.  A.  8331.) 

It  is  stated  that  several  important  Xew  York  designers  have  given 
up  their  studios  and  have  begun  to  import  foreign  designs.  Some 
are  opening  studios  in  foreign  countries. 

PARAGRAPHS  1685  AND  1687.— WORKS  OF  ART. 
WITNESS,  AND  INTEREST  REPRESENTED. 

FAVORING  PROPOSED  DUTIES  : 

Mr.  John  Quinn,  representing  the  American  Federation  of  Fine  Arts. 
REQUESTING  RECLASSIFICATION  : 

The  Netherlands  Chamber  of  Commerce  in  New  York.     (Brief.) 

Hearings :  Pages  5011-5028. 

Witness :  Mr.  John  Quinn,  representing  the  American  Federation 
of  Fine  Arts. 

Rates  suggested. — The  federation  is  opposed  to  the  imposition  of 
any  import  duty  upon  original  works  of  art  of  any  kind,  whether 
modern  or  over  100  years  old. 

The  witness  suggested  that  the  wording  of  paragraph  1685,  "  origi- 
nal drawings  in  pen  and  ink  or  pencil  and  water  colors, "  be  changed 
to  "  original  drawings  in  pen,  ink,  or  pencil,  or  water  colors."  Also 
that  the  wording  in  the  same  paragraph  should  be  changed  to  admit, 
free,  etchings  and  engravings  20  years  old,  as  "  artists'  proof  etch- 
ings "  are  construed  to  mean  artists'  proofs  signed  by  the  artist. 

Remarks. — In  the  course  of  his  testimony,  the  witness  submitted,  as 
a  brief,  a  statement  by  Mr.  Robert  de  Forest,  president  of  the  Ameri- 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  601 

can  Federation  of  Arts,  originally  appearing  in  the  American  Maga- 
zine of  Art,  September,  1921.  This  appears  on  pages  5015-5018. 

Witness:  The  Netherlands  Chamber  of  Commerce  in  New  York. 
(Brief;  no  appearance  at  hearings.) 

Remarks. — Attention  is  called  to  paragraph  1685,  providing  for 
original  drawings  and  sketches  in  pen  and  ink  or  pencil  and  water 
colors.  This  has  been  interpreted  to  mean  that  these  articles,  unless 
a  little  touch  of  water  color  is  added  to  them,  can  not  be  imported 
into  this  country  free  of  duty.  It  is  claimed  that  the  following  word- 
ing would  overcome  this  difficulty :  "  Original  drawings  and  sketches 
in  pen  and  ink  or  pencil  or  water  colors." 

The  provision  in  paragraph  1687  with  respect  to  collections  in 
illustration  of  the  progress  of  the  arts,  etc.,  imported  in  good  faith 
for  exhibition  at  a  fixed  place,  makes  it  impossible  to  exhibit  the  col- 
lection at  different  places  without  the  placing  of  a  new  bond  for  each 
place.  The  same  privilege  is  asked  for  collections  of  this  sort  as  is 
granted  to  those  enumerated  in  paragraph  1686. 

PARAGRAPH  1688. — WORKS  OF  ART  IMPORTED  EXPRESSLY  FOR  PRE- 
SENTATION TO  AN  INCORPORATED  RELIGIOUS  SOCIETY. 

WITNESS. 

REQUESTING  RECLASSIFICATION  : 

Cardinal  Dougherty,  archbishop,  Philadelphia,  Pa.     (Brief;  no  appearance 
at  hearings.) 

Rates  suggested. — The  following  changes  are  desired  in  paragraph 
1688: 

Insert  the  words  "  or  established  "  after  the  word  "  incorporated." 

Include  within  the  term  "  other  works  of  art  "  (a)  church  windows 
and  (&)  church  altars.  To  accomplish  this,  insert  after  "  pictorial 
paintings  on  glass  "  the  words  "  stained  or  painted  glass  windows 
and  parts  thereof,  and  architectural  works  of  art." 

Paragraph  1688,  if  revised  in  accordance  with  the  suggested 
changes,  would  read  as  follows: 

Works  of  art,  productions,  of  American  artists  residing  temporarily  abroad, 
or  other  works  of  art,  including  pictorial  paintings  on  glass,  stained  or  painted 
glass  windows  and  parts  thereof,  and  architectural  works  of  art,  imported 
expressly  for  presentation  to  a  national  institut'on  or  to  any  State  or  municipal 
corporation  or  incorporated  or  established  religious  society,  college,  or  other 
public  institution,  and  excluding  any  article,  in  whole  or  in  part,  molded,  cast, 
or  mechanically  wrought  from  metal  within  twenty  years  prior  to  importation ; 
but  such  exemption  shall  be  subject  to  such  regulations  as  the  Secretary  of  the 
Treasury  may  prescribe. 

Remarks. — It  is  claimed  that  the  bill  as  it  now  reads  will  not  allow 
the  free  entry,  in  all  cases,  of  works  of  art  imported  for  presentation 
to  Catholic  churches,  for  the  reason  that  the  Catholic  Church  is  not 
incorporated  in  many  of  the  States.  The  constitutions  of  some  of 
the  States  even  forbid  the  incorporation  of  any  religious  society. 

NOTE. — Paragraph  655  of  the  act  of  1913  was  heldc»to  extend  the  privilege  of 
free  entry  to  houses  of  worship,  whether  or  not  incorporated. 

H.  R.  7456,  paragraph  1688,  as  referred  to  the  Committee  on  Finance,  contains 
the  following :  "  including  stained  or  painted  glass  windows  imported  by  houses 
of  worship,"  which,  however,  was  not  in  H.  R.  7456,  paragraph  1687,  as  intro- 
duced into  the  House. 


602  DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456. 

PARAGRAPH   1688. — STAINED-GLASS  WINDOWS. 
WITNESSES,  AND  INTERESTS  REPRESENTED. 

FAVORING  HIGHER  DUTIES  : 

Mr.  Walter  West,  representing  the  Decorative  Glassworkers'  Association. 
Mr.  Edward  F.  McGrady,  legislative  agent  of  the  American  Federation  of 

Labor. 
Mr.  Otto  Heinigke,  representing  National  Ornamental  Glass  Manufacturers'" 

Association. 

The  American  Art  Glass  Co.  of  Columbus,  Columbus,  Ohio.     (Brief.) 
The     Ornamental     Glass     Manufacturers'     Association     of     Philadelphia. 

(Brief.) 

FAVORING  PROPOSED  DUTIES  : 

Mr.  James  H.  Ryan,  representing  the  National  Catholic  Welfare  Council. 
(Brief.) 

Hearings :  Pages  5028-5031. 

Witness:  Mr.  Walter  West,  representing  the  Decorative  Glass- 
workers'  Association. 

Costs  and  selling  prices. — During  the  last  20  years  or  more,  Ameri- 
can manufacturers  of  stained  windows  have  been  unable,  on  account 
of  price,  to  compete  with  any  of  the  European  houses,  particularly 
German  and  Austrian.  England's  best  work  is  25  per  cent  cheaper 
than  that  of  American  make.  Competition  with  German  and  Aus- 
trian firms  is  a  total  impossibility ;  there  is  only  one  solution  to  the 
problem — a  tariff  based  on  the  American  valuation  plan.  American 
manufacturers  want  a  tariff  because  of  the  difference  in  wages,  and 
need  protection  against  the  commercial,  i.  e.,  not  the  high-grade  win- 
dows. German  wages  are  14  cents  per  hour  as  compared  with 
American  of  80  cents  per  hour.  It  is  the  European  wage  scale  that 
permits  TO  per  cent  of  the  church  work  in  the  United  States  to  go  to- 
European  establishments. 

Size  of  industry. — American  manufacturers  claim  an  output  of 
some  six  or  seven  million  dollars  per  year,  and  assert  that  importa- 
tions were  never  more  than  $200,000  annually. 

Comparability. — American  manufacturers  can  do  the  very  best 
work  that  is  produced  in  the  world.  In  the  stained-glass  industry, 
it  is  not  considered  that  any  good  windows  come  from  Germany ;  they 
are  at  best  considered  of  a  mediocre  character.  The  following  state- 
ments are  taken  from  letters  from  Catholic  priests : 

You  have  helped  to  prove  the  truth  of  my  contention  that  our  stained-glas& 
concerns  in  this  country  can  do  work  in  no  way  inferior  to  the  makers  of  church 
windows  abroad. 

Artistically  it  is  just  as  good  as  any  of  the  samples  from  the  best  European 
firms,  and  mechanically  it  is  far  better  than  the  samples  of  the  very  best 
European  firms. 

The  witness  referred  in  a  copious  brief  (pp.  5032-5049)  to  a  con- 
troversy originating  with  a  German  importer  (Mr.  F.  X.  Zettler.  of 
Munich),  and  giving  rise  to  certain  statements  by  his  agent,  Mr. 
Louis  Merkel,  and  another  importer,  Mr.  Manton  M.  Wyvell.  Mrj 
Merkel,  the  brief  states,  asserts  that  windows  from  Germany  are  caH 
ried  out  in  real  antique  glass  and  that  they  can  not  be  reproduced  ia 
this  country.  And  Mr.  Wyvell  is  quoted  as  saying : 

When  antique  glass  is  specified  for  an  order  the  domestic  manufacturer  wit 
import  the  same,  at  a  high  cost ;  he  also  makes  continuous  efforts  to  bring 


DIGEST   OF   TARIFF    HEARINGS,   H.   R.    7456.  603 

European  glass  painters  and  workers  over  here,  where  the  technique  of  stained 
glass  is  but  little  known. 

Commenting  on  these  utterances,  it  is  noted  that  a  window  made  in 
Munich,  costing  $1.000,  was  installed  in  St.  Bernard  Church.  Dayton, 
Ky..  by  Pastor  Griefenkamp.  It  is  in  memory  of  a  young  man  killed 
in  France  and  is  a  gift  to  the  church  from  his  mother.  A  further 
statement  by  Mr.  Wyvell  alludes  to  the  claim  made  by  Mr.  Nader,  of 
Daprato  Studio,  Union  Hill,  N.  J.,  to  the  effect  that  a  certain  win- 
dow containing  100^  square  feet  can  not  be  produced  in  his  studio 
for  less  than  $1,963.66,  excluding  profit,  f.  o.  b.  factory.  In  this  con- 
nection Mr.  Wyvell  says: 

This  statement  alone  should  be  sufficient  to  condemn  all  the  claims  of  the 
organization,  because  American  manufacturers  of  stained-glass  windows  never 
asked  more  than  from  $300  to  $400  for  a  window  of  this  size  delivered  and 
set  in  place,  including  their  profit.  For  a  window  imported  from  Europe,  duty 
free,  a  price  of  at  least  $600  to  $700  will  be  asked,  if  of  the  same  size  and  rich- 
ness. *  *  *  Since  then  (the  nineteenth  century)  the  art  has  improved 
enormously  and  the  real  "  antique  glass,"  which  lends  the  great  brilliancy  to 
windows,  is  now  being  made  in  various  parts  of  Europe  in  900  different  shades 
and  is  used  there  exclusively,  while  here  the  cheap  and  artistic  "cathedral 
glass  "  is  worked  into  windows,  and  thus,  because  the  art  is  an  old-established 
one,  better  understood  abroad  than  here,  foreign  artists  in  designing  these  win- 
dows have  been  able  more  truly  to  represent  Christian  feeling  and  sentiment 
than  have  domestic  artists.  *  *  *  Stained-glass  windows  are  works  of  art 
of  high  character,  representative  of  the  Christian  or  religious  aspiration. 
*  *  *  In  Europe  eminent  painters  in  the  Christian  art  are  ready  to  draw 
cartoons  for  windows,  while  such  articles  are  practically  unknown  here. 

liiites  suggested. — The  witness  wants  a  duty  of  about  63  per  cent  on 
stained  glass.  He  wishes  stricken  from  paragraph  1688  the  follow- 
ing :  "  including  stained  or  painted  window  glass  or  stained  or 
painted  glass  windows  imported  by  houses  of  worship." 

Hearings :  Pages  5049-5050. 

Witness:  Mr.  Edward  F.  M'Grady,  legislative  agent  of  the  Amer- 
ican Federation  of  Labor. 

Costs  and  selling  prices. — Importers  from  Austria  and  Germany 
are  able  to  offer  windows  in  America  for  $3.26  per  square  foot  that 
cost  the  American  manufacturer  $12.72  per  square  foot  to  produce. 
The  difference  in  this  price  is  so  great  that  no  tariff  will  adequately 
protect  the  American  worker  short  of  the  American  valuation  plan. 

Size  of  industry. — In  June,  1921,  four  small  concerns  in  Germany 
reported  that  they  had  secured  $400,000  worth  of  orders  on  stained 
glass  windows  in  the  United  States,  and  at  that  particular  time  15 
of  the  largest  concerns  in  the  United  States  had  only  $105,000  worth 
of  orders. 

Rates  suggested. — The  witness  wishes  that  the  committee  will  give 
the  glassworkers  the  only  adequate  relief — an  import  duty,  based  on 
American  valuation,  that  will  be  high  enough  to  protect  the  Ameri- 
can worker  from  cheap  European  labor  and  broken-down  foreign 
exchange. 

Remarks. — The  witness  referred  to  a  brief  which, he  understood, had 
been  submitted  by  the  Rev.  John  J.  Burke,  general  secretary  of  the 
National  Catholic  Welfare  Council,  favoring  a  provision  that  orna- 
mental stained-glass  windows,  works  of  art,  etc.,  when  donated,  may 
enter  this  country  free  of  duty.  In  that  brief  it  was  stated  that,  if 
the  National  Catholic  Welfare  Council  or  the  hierarchy  of  the  Catho- 


604  DIGEST   OF   TARIFF    HEARINGS,   H.   R.   7456. 

lie  Church  of  the  United  States  were  convinced  that  an  American 
worker  would  suffer  by  the  free  importation  of  stained-glass  win- 
dows, they  would  not  seek  to  combat  petitions  presented  to  the  com- 
mittee in  favor  of  an  adequate  tariff. 

Hearings :  Pages  5050-5058. 

Witness:  Mr.  Otto  Heinigke,  chairman  tariff  committee,  National 
Ornamental  Glass  Manufacturers'  Association  of  the  United  States 
and  Canada. 

The  witness  took  up  the  question  of  stained-glass  window  produc- 
tion as  affected  by  the  technical  record  of  statistics.  In  the  past,  the 
sympathy  of  Congress  has  been  enlisted  for  the  church  by  the  im- 
porters. This  industry  is  subject  to  great  fluctuations;  during  the 
war  churches  withheld  almost  all  orders,  and  before  the  war  produc- 
tion might  range  between  $200,000  and  $500,000. 

Labor,  including  high-class  artists,  accounts  for  70  per  cent  of  the 
costs.  German  manufacturers  quote  for  windows  at  from  $1.50  to 
$4  per  square  foot,  while  the  cost  in  domestic  factories  is  $9.46  per 
square  foot.  As  regards  the  quality  of  American  commercial  win- 
dows, it  is  neither  better  nor  poorer  than  the  imported. 

Witness:  The  American  Art  Glass  Co.,  Columbus,  Ohio.  (Brief; 
no  appearance  at  hearings.) 

Comparability. — The  average  stained  window  is  offered  by  Ger- 
man importers  for  $3.26  per  square  foot — less  than  before  the 
war.  The  same  window  costs  American  producers  $12.76  per  square 
foot — twice  as  much  as  before  the  war — wages  accounting  for  70 
per  cent  of  that  cost.  Sixty  per  cent  of  the  regular  men  of  the 
company  are  unemployed.  These  windows  are  not  necessities  to 
churches,  but  luxuries.  The  churches  are  wealthier  now  than  ever 
before,  and  these  windows  are  gifts  from  their  wealthiest  me^m- 
bers — people  who  have  profited  by  the  war. 

One  German  manufacturer  states  that  he  has  orders  for  $140,000 
worth  of  windows  for  American  churches.  Another  had  $80,000 
worth,  six  months  ago.  There  are  two  other  German  houses,  each 
of  which  has  probably  twice  as  much  as  either  of  those  mentioned. 
A  hurried  canvass  of  the  15  largest  producers  in  the  United  States 
indicates  that  all  producers  together  have"  not  $150,000  worth  of 
orders,  owing  to  the  tremendous  advantage  possessed  by  the  Ger- 
mans in  their  wage  scale. 

"  The  incongruity  of  above  situation  is  that  hereafter,  when  a 
memorial  window  for  American  soldiers  is  to  be  erected,  it  will  be 
manufactured  by  the  nation  that  killed  him — the  Germans — while 
the  American  manufacturer,  who  has  been  called  on  to  sacrifice  both 
blood  and  money  for  victory,  will  be  without  work." 

Every  Republican  tariff  has  protected  this  industry,  and  it  does 
not  seem  fair  that  the  party  which  has  so  protected  and  encouraged 
it  should  now  permit  it  to  be  destroyed  by  foreign  competition. 

The  churches  are  the  only  customers.  The  firm  will  appreciate 
anything  done  to  save  this  business  for  American  workmen  and 
American  capital. 

Witness:  The  Ornamental  Glass  Manufacturers'  Association  of 
Philadelphia.  (Brief;  no  appearance  at  hearings.) 

House  bill  7456,  as  reported  by  the  Ways  and  Means  Committee, 
gave  protection  to  American  manufacturers  on  stained  and  painted 


DIGEST   OF   TARIFF   HEARINGS,   H.   R.    7456.  605 

glass  windows.  An  amendment  to  paragraph  168T,  made  on  the  floor 
of  the  House,  permits  the  only  consumers  of  this  product  to  import  it 
free — a  provision  which  would  deliver  the  entire  American  market 
to  the  German  manufacturer.  The  incongruity  of  this  situation  is 
apparent. 

Every  Republican  tariff  has  given  protection  to  this  industry  and 
the  business  of  American  manufacturers  has  prospered  under  it. 

An  attached  petition,  signed  by  manufacturers,  artists,  and  crafts- 
men of  the  industry,  asks  that  paragraph  1687  of  the  bill  be  amended 
so  that  it  will  read  as  reported  by  the  Ways  and  Means  Committee. 

Hearings:  Pages  5058-5059. 

Witness :  Mr.  James  H.  Ityan,  representing  the  National  Catholic 
Welfare  Council.  (Brief.) 

The  brief  is  a  reply  to  statements  made  by  other  interests  and 
affords  an  opportunity  of  renewing  the  council's  objection  to  an  im- 
port duty  on  stained  glass.  In  requesting  free  admission  it  is  stipu- 
lated that  no  windows  are  to  come  under  this  privilege  unless  they 
are  of  artistic  merit  and  then  only  if  imported  directly  by  houses  of 
worship.  Emphasis  is  laid  upon  this  product  being  the  work  of  ar- 
tists rather  than  of  artisans,  just  as  in  the  creations  of  a  sculptor  or 
a  portrait  painter. 


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